Netflix owning Warner Bros. and HBO Max is more than just a streaming story. That’s a movie story. Netflix stands to acquire one of Hollywood’s last major studios in an $82.7 billion deal, suddenly putting the future of theatrical releases in doubt. Depending on who you ask, this is either a new era of opportunity or the beginning of a very long and very worrying decline for movie theaters.
Netflix promises ‘no opposition’ to theatrical release…for now
One of the biggest questions after this announcement was simple. Will Netflix actually keep showing Warner Bros. movies in theaters?
Ted Sarandos says yes, at least in the short term. Netflix’s co-CEO insists the company is not “opposed to showing movies in theaters,” and the official statement says Netflix “looks forward to retaining Warner Bros.” We will strengthen our current businesses and further strengthen our strengths, such as the theatrical release of movies. ”
On a conference call with investors and reporters, Sarandos pointed to Netflix’s existing track record in theaters, saying the company released 30 movies in theaters in 2025. But it was also clear where Netflix’s true focus was. “I’m not opposed to the movie being released in theaters,” Sarandos told Variety. “The main reason for my pushback is the fact that the exclusivity period is long, and we don’t think that’s very consumer-friendly, but when you talk about continuing to operate HBO pretty much as is, that includes the output movie deal with Warner Bros. That includes a lifecycle that starts in theaters, and we’re going to continue to support that.”
Continuing the call, he emphasized that, at least for now, he does not see this as a dramatic shift in strategy. “I don’t see this as a change in the approach of Netflix movies or Warner movies,” he said. “I think over time, the window will evolve to be more consumer-friendly and we’ll be able to see audiences sooner…Right now, I think you should count on anything that’s going to be released to theaters through Warner Bros. It’s going to continue to be released to theaters through Warner Bros. Also, Netflix Movies will continue to make the same progress as before, which means some films will be shown briefly in theaters in advance, but our main goal is to get first-run movies into our theaters because that’s what they’re looking for. ”
The exhibition industry is sounding the alarm
Movie theater owners aren’t necessarily relieved. Cinema United, the world’s largest exhibition industry group, issued a harsh statement calling the merger an “unprecedented threat to the global exhibition business”.
“Netflix’s proposed acquisition of Warner Bros. poses an unprecedented threat to the global exhibition business,” said Michael O’Leary, president and CEO of Cinema United, as reported by CNBC.
“Cinema United stands ready to support changes in the industry that lead to increased film production and give consumers more opportunities to enjoy a day at their local theater. However, Netflix’s stated business model does not support theatrical screenings; in fact, the opposite is true. Regulators should carefully consider the details of this proposed transaction and understand the negative impact it would have on consumers, exhibitions, and the entertainment industry.”
The concerns are straightforward. Warner Bros. is one of the few studios still deeply committed to theatrical release, and has a track record of delivering global event films. If that pipeline is shortened or ultimately pivoted to a streaming-first strategy, theaters will feel the impact immediately.
Window Debate: Netflix vs Tradition
Netflix has for years opposed the traditional 45- to 90-day exclusive theatrical release window, arguing that long gaps between movies and home releases are “not consumer-friendly.” The acquisition of a major theater studio has turned a long-standing philosophical debate into a very practical one.
Sarandos’ comments underscore the tension. He talks about keeping HBO’s theatrical lifecycle intact, as well as “over time, the window will evolve to be more consumer-friendly.” Be careful with your words. Warner Bros.’ existing titles are being treated as safe and the current system will remain in place “for now.” The question is, what happens when the dust settles and the new corporate machine pursues efficiency?
Critics worry that Warner Bros. films will have increasingly short theatrical runs, in some cases being released primarily in theaters to qualify for awards and boost name recognition, and then moving quickly to Netflix.
The stakes for movie theaters are very real.
Warner Bros. is more than just a logo on a studio lot. The company is a key supplier to movie theaters around the world, from big-name dramas and award nominees to superhero highlights and horror hits.
If Netflix’s Warner Bros. leans further toward a streaming-first strategy, the ripple effects will be significant, including lower theatrical box office revenue, fewer anchor titles across the calendar, and increased pressure on independent films already operating on thin margins. The health of movie theaters is directly tied to how long Warner Bros. continues to behave like a theater-first studio.
Behind the scenes, some Hollywood producers are already expressing their concerns in harsh terms. In a letter to Congress, a group of anonymous producers warned (as quoted by the New York Times) that Netflix has “no incentive to support theatrical releases and every incentive to kill them.” It’s an honest assessment, but one that illustrates the anxiety many in the industry feel about handing so much power to a company that built an empire on home viewing.
Is it a slow shift or a fast shift?
There is no consensus on how fast things change. Some analysts are calling for Warner Bros. to be broken up. Considering how much reliable revenue the studio still makes from the global box office, a theatrical presence would be a mistake, at least in the short term.
Some point to Netflix’s track record. The streamer has consistently prioritized its own platforms, and when experimenting with theatrical releases, its runtimes have generally been shorter and narrower than those of traditional studios. Even the most famous titles tend to be shown in a limited number of theaters for a limited time.
When you layer a studio like Warner Bros. on that philosophy, you get an ecosystem that looks very different, even if the initial message is about continuity and respecting incumbents.
Important points for movie theaters
For now, on paper, Warner Bros. is maintaining its theatrical schedule, and Netflix continues to insist it doesn’t hate theaters. The contract documents state that they will “retain Warner Bros.” “current operations” and “further strengthening of strengths such as theatrical release of movies.” In the short term, that’s probably the case.
In the long run, the dynamics are clear. The streamer that once shook up Hollywood with its DVD mailings is on track to take control of one of the industry’s last great theatrical engines. If Netflix ultimately decides that a shorter, streaming-first release is better for its bottom line, there are limited levers exhibitors can pull accordingly.
For the first time, Warner Bros.’ future as a theater powerhouse will be shaped by a company whose primary goal is, as Sarandos puts it, “bringing first-run movies to our members.” For movie theaters, that doesn’t mean the end. But that means the coming years will be under intense, and very legitimate, scrutiny.
