The news broke late last year that Netflix had officially purchased Warner Bros. as part of a deal said to be valued at $82.7 billion. This was obviously a massively significant development that will alter the face of the entire entertainment industry, and nobody seemed to be particularly happy about it - least of all movie theaters.
Cinema United released the following statement shortly after the deal was announced, making their stance on the merger very clear.
“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business. Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre. But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite.
Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.” This mega-deal between Netflix and Warner Bros. would risk removing 25% of the annual domestic box office if films that are traditionally given a robust theatrical release by Warner Bros. disappear from theatres. Netflix currently grants only a handful of their films a token theatrical release and the overwhelming.”
These are completely valid concerns, but Netflix CEO Ted Sarandos ensured worried parties that the streamer will remain "committed" to releasing movies in theaters in a follow-up interview.
“We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in theaters,” he said during a call with Wall Street. “My pushback has been mostly in the fact of the long, exclusive windows, which we don’t really think are that consumer friendly.”
Traditional 30 or 45-day theatrical windows had obviously dwindled after the pandemic, anyway, but it's something major theatre chains were hoping to reestablish over the next few years as the box office slowly but surely rejuvenates.
“I wouldn’t look at this as a change in approach for Netflix movies or Warner movies, for that matter," Sarandos went on. "I think over time the windows will evolve to be much more consumer friendly … to meet the audience where they are … all those things we’d like to do. But I’d say that right now you should count on everything that has planned on going to the theaters through Warner Bros. will continue to go to the theaters through Warner Bros. And Netflix movies will take the same [path] as they have — which is some of them do have a short run in the theater beforehand.”
The word "evolve" raised a few eyebrows, and with good reason.
According to Deadline's sources, the streamer may look for a 17-day window which would "steamroll the theatrical business, while circuits such as AMC believe the line needs to be held around 45 days."
From one perspective, this may seem reasonable. After all, the bulk of a movie's box office revenue is made within its first two to three weeks when demand is highest. However, what wouldn't be taken into account is the fact that theaters rely on those extended windows - not necessarily to maximize a single film’s profit, but to incentivize the moviegoing experience as an exclusive event.
At any rate, Deadline's report doesn't indicate that Netflix will definitely implement a 17-day theatrical window, but it sounds like it's certainly something that's been discussed. Still, even if it does come to pass, it's difficult to imagine the streamer pulling a major blockbuster from theaters after a few weeks if it's still raking in cash.