The pending sale of Warner Bros. continues to be the central focus of the entertainment industry, with Netflix appearing to be the likely winner in the dramatic bidding war. However, exhibitors remain suspicious of Netflix’s ultimate plans for WB, despite a full-court press by the streamer to win over its critics.
Since the announcement by the board of directors at Warner Bros. that it had selected Netflix’s offer, exhibitors pulled the alarm about Netflix’s disregard for the ongoing role of movie theatres in the movie business – imagine that! Netflix Co-CEO Ted Sarandos has been widely cited for his public comments that the theatrical release model is “outmoded.” Going forward, if Warner Bros. movies were to be removed from the theatrical release calendar in favor of streaming-only releases, the impact on movie theatres would be catastrophic.
Netflix is well aware that it needs to address these concerns for its acquisition to be approved by both U.S. and European regulators. In a series of interviews with media outlets, Sarandos and his Co-CEO Greg Peters have stated a newfound commitment to the theatrical model if they were to take over Warner Bros. Studios. In an interview with the New York Times, Sarandos stated explicitly that he would support a 45-day exclusive window for Warner. Bro’s movies to play in theatres.
Puck journalist Matthew Belloni reached out to Regal’s CEO, Eduardo Acuna, to get his response to Sarandos’ comments in the NYT interview. While Acuna told Belloni that he is “cautiously optimistic” that Netflix is now seeing the value of theatrical releasing, he also said that the devil will be in the details.
Acuna stated that Netflix could take concrete steps immediately to indicate its intentions, such as making a ten-year commitment within the 45-day window, and applying this strategy to its upcoming blockbuster release of Greta Gerwig’s NARNIA this Thanksgiving. Doing so would help reassure the market that Netflix is serious about supporting moviegoing as an essential part of the movie business.
