Netflix’s Ted Sarandos Commits to Theatrical Releases for Warner Bros.

Netflix co-CEO Ted Sarandos has reaffirmed his commitment to maintaining traditional theatrical windows for Warner Bros. movies, should the streaming giant’s proposed $82.7 billion acquisition of Warner Bros. Discovery proceed. During an unexpected appearance at a Canal+ Group event in Paris on October 3, 2023, Sarandos stated, “Our intentions when we buy Warner Bros. will be to continue to release Warner Bros. studio movies in theaters with the traditional windows.” This commitment addresses ongoing concerns within the industry regarding the potential impact of the acquisition on theatrical distribution.

Sarandos elaborated on Netflix’s previous avoidance of theatrical releases, explaining, “We never got into it before because we never owned a theatrical distribution mechanism.” He noted that Netflix primarily focused on monetizing films through its subscription model, which had proven effective for rapid growth. The comments come at a time when exhibitors and industry stakeholders are wary of how such a deal might affect the future of cinema.

Strategic Insights into Theatrical Distribution

Highlighting the differences between Netflix and Warner Bros., Sarandos pointed out that Warner Bros. has a rich history in theatrical distribution. He remarked, “We’ve only been doing original programming for 12 years,” emphasizing Netflix’s relatively short history in the film industry compared to Warner Bros., which spans a century. He acknowledged that the Warner Bros. library contains invaluable knowledge and experience in areas Netflix has yet to explore, such as theatrical distribution.

During the event, Maxime Saada, Chairman and CEO of Canal+ Group, inquired about Netflix’s future relationship with Canal+ following a potential merger with Warner Bros. Sarandos indicated that Netflix would continue to compete for significant programming events and specialized sports content, such as major boxing matches. He reinforced, “Our primary mission is film and television.”

Saada also expressed gratitude towards Netflix for transforming the content consumption landscape in France. He noted, “Before you showed up, we had approximately 30 percent of French people willing to pay [for] TV.” The entry of Netflix into the French market has reportedly increased the penetration of paid television to 75 percent.

Future Projects and Commitment to Theatrical Windows

The evening’s discussions also featured Anna Marsh, CEO of StudioCanal, who reiterated the company’s dedication to theatrical releases. Marsh took the opportunity to unveil a new film project titled Elsinore, starring Andrew Scott and Olivia Colman. The project exemplifies StudioCanal’s ongoing commitment to producing quality content for theatrical audiences.

As the landscape of film distribution continues to evolve, Sarandos’ comments highlight a significant strategic commitment from Netflix towards traditional cinema. This move may help to reassure industry stakeholders that the streaming giant recognizes the value of theatrical releases as part of its broader film strategy.

Overall, the potential acquisition of Warner Bros. Discovery signifies a pivotal moment not only for Netflix but also for the entire film industry as it navigates the balance between streaming and traditional theater experiences.