Ted Sarandos says Netflix has no intention of sidelining Warner Bros.’ theatrical business and plans to keep the studio’s movies in theaters for a 45-day exclusive window if its proposed acquisition moves forward.
In an interview with The New York Times, the Netflix co-CEO reiterated that should the company finalize its deal to acquire Warner Bros. Discovery’s film and television studios and streaming assets, Warner Bros. films would continue to receive traditional theatrical releases.
“When this deal closes, we will own a theatrical distribution engine that is phenomenal and produces billions of dollars of theatrical revenue that we don’t want to put at risk. We will run that business largely like it is today, with 45-day windows,” Sarandos said. “I’m giving you a hard number. If we’re going to be in the theatrical business, and we are, we’re competitive people — we want to win. I want to win opening weekend. I want to win box office.”
Sarandos emphasized that Netflix’s interest in Warner Bros. is rooted in profitability rather than dismantling the studio’s theatrical model. He noted that many assumptions Netflix executives previously held about the theatrical business proved inaccurate.
“The general economics of the theatrical business were more positive than we had seen and we had modeled for ourselves. It’s a healthy, profitable business for them,” he said.
Netflix’s proposed $83 billion acquisition has sparked widespread industry backlash, particularly among theater owners and trade groups. Cinema United recently warned lawmakers that the sale could result in fewer movies, job losses, and theater closures, given Netflix’s historical reluctance to prioritize theatrical releases.
Addressing the criticism, Sarandos said he wasn’t surprised by the reaction. “I think it was a lot of loud voices, but not necessarily a lot of them,” he said. “I think a lot of it was folks who questioned, rightfully so, our intent with theatrical because we hadn’t said anything about it. A lot of it was the emotions around that more than anything else.”
The deal has not yet closed, as David Ellison and Paramount Skydance have launched a competing bid and signaled plans to challenge Netflix’s agreement through a proxy battle. Sarandos acknowledged that many in Hollywood would prefer no acquisition at all, saying, “What people would like to see is no deal. But that’s not possible. There are two outcomes of this deal, and we have a signed deal done.”
Sarandos also pushed back on the notion that Netflix is inherently anti-theatrical. “We weren’t in that business not because we hated it. We weren’t in that business because our [streaming] business was doing so well,” he said.
Netflix has recently seen success with limited theatrical runs of its original content, including the Stranger Things 5 finale and KPop Demon Hunters. Sarandos said those events demonstrated that audiences will still show up when given a compelling reason.
“You give people a reason to leave the house, they will gladly leave the house,” he said.
Sarandos also addressed backlash over previous comments in which he described theatrical moviegoing as “outmoded.” Clarifying those remarks, he explained that his statement applied to certain regions without easy access to theaters, not to major cities like New York.
“You have to listen to that quote again. I said ‘outmoded for some.’ I mean, like the town that ‘Sinners’ is supposed to be set in does not have a movie theater there,” he said. “But my daughter lives in Manhattan. She could walk to six multiplexes, and she’s in the theaters twice a week. Not outmoded for her at all.”
Netflix has previously stated that it intends to keep Warner Bros.’ studio operations largely intact. However, Sarandos has also acknowledged that theatrical release windows could eventually become “much more consumer-friendly.”
Separately, Netflix recently announced a renewed multiyear global film output deal with Sony Pictures Entertainment, valued at more than $7 billion, further underscoring its continued investment in theatrical content.
Source: Variety