Netflix’s £82.7bn WB Takeover: What’s Next for Cinemas?

After months of swirling rumours, Warner Bros. has at last secured a buyer. Netflix is set to acquire the iconic studio for a staggering £82.7 billion, a deal encompassing both its film and television arms. Given Warner Bros.’s longstanding significance for the cinema sector, many are understandably uneasy—especially in light of Ted Sarandos’ earlier remarks about the value of the big screen experience.

Shorter Windows on the Horizon?

While Sarandos has assured that the studio’s productions will continue to appear in cinemas, he has voiced reservations about the tradition of lengthy exclusive theatrical windows. Speaking to investors, he commented:

It’s not like we have this opposition to films into cinemas. My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer-friendly

Although there are no immediate plans to overhaul Warner Bros.’s established approach to theatrical releases, Sarandos hinted that changes could be introduced in the future. The implication is clear: the days of extended cinema exclusivity may be numbered.

Changing the Release Game

Last year proved to be a strong one for the studio, despite a handful of disappointments such as Bong Joon Ho’s Mickey 17 and PTA’s One Battle After Another. Warner Bros. still managed to notch up several box office triumphs. However, while audiences can expect to see the studio’s upcoming projects on the big screen for now, the length of their cinema runs could be significantly reduced compared to previous years.

Sarandos elaborated on his vision, suggesting that the industry’s approach to release windows will gradually shift to something he described as more “consumer-friendly”—in other words, more closely aligned with streaming platforms.

I wouldn’t look at this as a change in approach for Netflix films or for Warner films. I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker.

For the time being, at least, the studio’s forthcoming line-up is expected to reach cinemas, and the established release pattern remains in place—though perhaps not for long.

Box Office Fears and Industry Backlash

Warner Bros. has long been a cornerstone of the cinema business, accounting for roughly a quarter of annual box office takings. With cinemas still struggling to recover to pre-pandemic levels, the prospect of losing the studio’s major releases is a worrying one for many in the industry.

Michael O’Leary, President and CEO of Cinema United, has voiced his concerns about the potential fallout from the merger, warning that it could have far-reaching consequences for cinemas both large and small. He stated:

The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world… 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.

Only time will reveal how this seismic deal will reshape the landscape for cinemas and audiences alike.