The news broke earlier today that Netflix has - much to Paramount's chagrin, no doubt - officially purchased Warner Bros. as part of a deal said to be valued at $82.7 billion.
This is obviously a massively significant development that will alter the face of the entire entertainment industry, and nobody seems particularly happy about it - least of all movie theaters.
Cinema United released the following statement, 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 says the streamer remains "committed" to releasing movies in theaters.
“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.”
What will this mean for DC Studios? We can't see any major changes being implemented after the deal goes through, but it's certainly possible that CEOs James Gunn and Peter Safran might be kept on a slightly shorter leash, for lack of a better term, going forward.
Gunn has always maintained that he had final say when it came to all creative decisions relating to the DCU, but Sarandos and co. may not be willing to give him quite so much freedom.