Netflix CEO Ted Sarandos has promised to continue with theatrical releases for Warner Bros films, following the confirmation that the streaming giant will acquire the studio’s film and TV assets in an $82.7bn deal.
Answering a question about theatrical releases on a call for investors, Sarandos said: “We’ve released around 30 films in theatres this year so it’s not like we have this opposition to movies in theatres. Our push back is on the long, exclusive windows, which we don’t really think are that consumer-friendly.
“But when we talk about keeping HBO operating largely as it is, that also includes their output movie deal with Warner Bros, which includes a life cycle that starts in a movie theatre, which we will continue to support. I wouldn’t look at this as a change in approach for Netflix movies or Warner movies for that matter.
“I think over time the windows will evolve to become much more consumer-friendly and meet the audience where they are quicker, but right now you should count on everything that is planned on going to the theatre through Warner Bros will continue to go to the theatre through Warner Bros. Netflix films will take the same strategy as they have which is some of them do have a short run in the theatre beforehand, but our primary goal is to bring first-run movies to our users because that’s what they’re looking for.
“Up until now [theatrical releases] were not our business model; we are acquiring a business where this is part of the business model and we intend to continue with that.”
On the call, Sarandos also expanded on how Netflix aims to use the wealth of Warner Bros IP that it is acquiring as part of the deal, including the DC universe, Harry Potter franchise and the Game Of Thrones series.
“You should think about the ways you can explore all these IP universes beyond making tentpole movies,” said Sarandos. “We’ve had some early success of digging deep into these bigger pools of IP. A good example of this is that prior to Wednesday, the Addams Family didn’t have much value for MGM, and we have the ability to unlock storytelling and world-building out of this existing IP that are difficult to imagine today. So we’re really excited about this. Examples of this would be some of the earlier moves in the DC universe on things like Penguin. Those opportunities are limitless.”
Following confirmation of the $82.7bn deal, cinema bodies voiced their concerns. The International Union of Cinemas [UNIC], the European trade body representing cinema exhibitors, said the move could lead to “reduced income and significant cinema closures and job losses in the industry”
Meanwhile, Michael O’Leary, president and CEO of exhibition trade organisation Cinema United (formerly Nato), said in a statement that the proposed acquisition “poses an unprecedented threat to the global exhibition business”.
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