Ted Sarandos insisted that Netflix has no “opposition to movies in theaters,” as the streamer said it “expects” to release Warner Bros. films theatrically if it completes its $82.7 billion deal for the studio and HBO Max.
On a conference call with investors and press on Friday, the Netflix co-CEO noted that the company has released 30 films in cinemas in 2025, though most of those films have had a far shorter theatrical run than those from a typical studio.
“It’s not like we have this opposition to movies into theaters,” Sarandos said. “My pushback has been mostly in the fact of 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 the movie theater, which we’re going to continue to support.”
However, Sarandos suggested that life cycle may soon change, or, in his words, “evolve.”
“I wouldn’t look at this as a change in approach for Netflix movies or for Warner movies,” he said. “I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker…I’d say right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros., and Netflix movies will take the same strides they have, which is, some of them do have a short run in the theater beforehand. But our primary goal is to bring first-run movies to our members, because that’s what they’re looking for.”
Netflix primarily releases its films on its streaming platform, though it does debut certain films in theaters and gives them a limited exclusive run in cinemas. These are usually awards contenders such as Noah Baumbach’s “Jay Kelly,” Guillermo del Toro’s “Frankenstein” and Kathryn Bigelow’s “A House of Dynamite.” Netflix has also announced it will release Greta Gerwig’s “Narnia: The Magician’s Nephew” in Imax venues next year. The company has also bought and refurbished theaters, including the Paris in New York and the Egyptian in Los Angeles.
When Netflix was competing with Paramount and Comcast for Warner Bros. Discovery, the streamer informed the company’s execs that it would honor Warner Bros.’ contractual agreements to release movies in theaters if it acquires the assets, according to sources familiar with the talks. In a statement accompanying the announcement of the pact to buy Warner Bros., Netflix confirmed that it “…expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”
Theater owners are skeptical of the deal, noting that Netflix has often been dismissive of their business. In an interview last year, Sarandos suggested that movie theaters were “outdated.”
“If you’re fortunate enough to live in Manhattan, and you can walk to a multiplex and see a movie, that’s fantastic,” Sarandos told Time magazine editor-in-chief Sam Jacobs at the Time100 Summit last spring. “Most of the country cannot.”
In a statement following the announcement of the deal, Cinema United, the exhibition industry largest trade group, slammed the pact.
“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business. The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world,” said Cinema United President and CEO Michael O’Leary. “Cinema United stands ready to support industry changes that lead to increased movie production and give consumers more opportunities to enjoy a day at the local theatre. But Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite. Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.”
