Netflix’s deal to acquire Warner Bros., one of Hollywood’s oldest movie studios, poses seismic shifts to the entertainment industry and the future of moviegoing.
As one of the remaining “big five” studios, the 102-year-old Warner Bros. is an essential part of movie theater business.
The studio currently boasts three of the top five earning films domestically, including “A Minecraft Movie,” in first place, “Superman” and “Sinners,” as well as the Oscar frontrunner, “One Battle After Another.”
There are more questions than answers about how ownership from a streaming giant would change things for Warner Bros. It’s not even clear if it will pass antitrust scrutiny, or, if it does, what the details will look like.
Here are some things to know, and lingering questions.
Paramount’s hostile takeover bid
Paramount on Monday launched a hostile takeover bid for Warner Bros. Discovery, going straight to Warner shareholders with a bid worth about $74.4 billion, or $30 per share in cash. Unlike Netflix, Paramount is also offering to buy the cable television assets. Paramount executives said their offer is worth about $18 billion more than the competing bid from Netflix. It is the same bid that Warner Bros. had earlier rejected in favor of Netflix’s offer.
Donald Trump’s response
President Donald Trump said Sunday before the Kennedy Center Honors that Netflix’s acquisition of Warner Bros. “could be a problem” because of the size of the combined market share.
“Netflix is a great company. They’ve done a phenomenal job. Ted is a fantastic man,” Trump said of Netflix co-CEO Ted Sarandos, noting that they met in the Oval Office last week before the deal was announced Dec. 5. “I have a lot of respect for him but it’s a lot of market share, so we’ll have to see what happens.”
Will Warner Bros. continue releasing movies in theaters?
Yes, but it might change as well. For starters, it’ll be at least 12 to 18 months before the deal officially goes through and moviegoers can expect essentially business as usual until then. Sarandos said Friday that they will “continue to support” a “life cycle that starts in the movie theater” for Warner Bros. movies. But he also commented that he doesn’t think that “long exclusive windows” are consumer friendly.
With the rise of streaming, and especially in the pandemic era, studios experimented with different theatrical windows. For many years, a 90-day theatrical window was standard, but now it’s closer to 45 days and often a film-by-film decision.
Netflix and movie theaters
Netflix does release some films theatrically, but not usually more than a few weeks before they hit streaming. Sometimes that’s to qualify for awards eligibility, sometimes it’s a gesture to top filmmakers. This year those releases included Guillermo del Toro’s “Frankenstein,” Kathryn Bigelow’s “A House of Dynamite” and Noah Baumbach’s “Jay Kelly.”
Major chains like AMC and Regal had refused to program Netflix releases until 2022, when enthusiasm for the “Knives Out” movie “Glass Onion” helped break the stalemate.
Earlier this year, “KPop Demon Hunters” unofficially topped the box office charts, earning nearly $20 million from a one-weekend run in theaters two full months after it debuted on the streamer.
Netflix also owns and operates several movie theaters, including the Paris Theater in New York and the Egyptian Theatre in Los Angeles.
Upcoming Warner Bros. movies
The studio has a diverse slate of films expected in 2026, with high profile titles including the Margot Robbie-led “Wuthering Heights” in February, “Supergirl” in June, “Practical Magic 2” in September, Alejandro Iñárritu’s untitled Tom Cruise movie in October and Denis Villeneuve’s “Dune: Part Three” in December.
Movies planned for 2027 include sequels to “Superman,” “A Minecraft Movie” and “The Batman.”
Earlier this year the company said its target was 12 to 14 releases annually across its four main labels, Warner Bros. Pictures, DC Studios, New Line Cinema and Warner Bros. animation.
What does it mean for movie theaters?
So much of this depends on the details, but Cinema United president and CEO Michael O’Leary said hours before the news broke that it posed “an unprecedented threat to the global exhibition business.”
He added: “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.”
Theatrical exhibition has not fully recovered since the pandemic. Before 2020, the annual domestic box office regularly surpassed $11 billion. Since then it has only surpassed $9 billion once, in 2023, driven largely by “Barbie,” a Warner Bros. release.
How will top filmmakers react?
It’s too early to tell, but Warner Bros. has always prided itself on being one of the premier homes for top filmmakers, this year releasing films from Paul Thomas Anderson, Ryan Coogler and James Gunn. Other longstanding relationships include Villeneuve, who has “Dune: Part Three” coming next year, Clint Eastwood and Todd Phillips. Much likely depends on whether robust theatrical releases will be honored — many of these filmmakers are vocal champions of the theatrical experience and may not stick around if it shifts.
“Sentimental Value” director Joachim Trier on Monday told The Associated Press, “I make films for the big screen and believe in the theatrical experience and I just want to make sure the experience is maintained.”
Director Park Chan-wook, also speaking to AP Monday, said that he didn’t want to speak about it specifically because nothing has been confirmed, but that, regardless, “I still believe that movies should be watched in theaters.”
The studio’s controversial decision to release films simultaneously in theaters and on HBO Max in 2021 during the pandemic led to a rift with Christopher Nolan, who after making eight major films with the company, including the “Dark Knight” trilogy, partnered with Universal to make his next two films, “Oppenheimer” and next year’s “The Odyssey.”
Will HBO Max and Netflix become one service?
That’s also unclear. If the two platforms remain separate subscriptions, there may be “bundling” options, as with Disney and Hulu. Netflix on Friday said that the addition of HBO and HBO Max programming will give its members “even more high-quality titles from which to choose” and “optimize its plans for consumers.”
The Warner Bros. library of films includes classics like “Casablanca” and “Citizen Kane” as well as the “Harry Potter” movies.
Associated Press writers John Carucci , Sian Watson,and Jonathan Mattise contributed to this report.
