Netflix Commits to 45-Day Theatrical Window for Warner Bros. Films

Netflix co-CEO Ted Sarandos has announced a commitment to maintain a 45-day theatrical exclusivity window for films from Warner Bros. if the streaming giant’s proposed acquisition goes ahead. This statement marks a significant shift from earlier reports suggesting a much shorter 17-day window, which would have severely impacted the financial viability of theaters.

In an interview with The New York Times, Sarandos emphasized the importance of theatrical releases, stating, “We will run that business largely like it is today, with 45-day windows. 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.” This declaration indicates a desire to secure strong box office performance for Warner Bros. films and to support the traditional cinema model.

The change in approach comes in the wake of pressure from major theater chains like AMC, which have been advocating for the preservation of the 45-day window. Prior to Sarandos’s comments, industry insiders reported that Netflix had been considering a 17-day theatrical window that would have significantly hindered theaters’ revenue from Warner Bros. titles. The pushback from cinema operators appears to have influenced Netflix’s strategy as it navigates its potential acquisition.

Industry Reactions and Broader Implications

The announcement also coincides with escalating concerns from the cinema industry regarding the implications of Netflix’s acquisition of Warner Bros. Recently, Cinema United warned Congress that this deal represents an “unprecedented threat” to theaters around the world. Michael O’Leary, CEO of Cinema United, criticized the acquisition for its potential to undermine both large chains and independent cinemas in smaller communities across the United States.

The proposed acquisition, valued at $82.7 billion, could consolidate some of the most iconic franchises in entertainment under a single streaming platform. This includes popular series such as Harry Potter, Game of Thrones, and the DC Universe, alongside Netflix originals like Stranger Things and Squid Game.

Regulatory scrutiny of the deal is intensifying, with lawmakers expressing concerns about the potential monopolistic control over the streaming market. Senator Mike Lee indicated that a congressional hearing on the acquisition is “almost certain,” while Senator Elizabeth Warren has voiced her worries about the ramifications of a single entity controlling nearly half of the streaming landscape.

Additionally, Paramount Skydance is actively pursuing a competing offer for Warner Bros., arguing that their proposal would encounter fewer regulatory obstacles, thus adding another layer of complexity to the ongoing negotiations.

As the situation unfolds, the cinema industry is closely monitoring Netflix’s commitment to the theatrical model. The next steps in this acquisition process may well determine the future landscape of film distribution and the survival of theaters in an increasingly digital world.