Netflix's WB Takeover: Are Movie Theaters Facing Their Final Curtain?
In a seismic shift for Hollywood, Netflix has officially acquired Warner Bros. for a staggering $82.7 billion. The deal gives the streaming giant control over a legendary studio, raising urgent questions about the future of theatrical releases and the very survival of the big-screen experience.
The rumors are finally over. Netflix is set to purchase the iconic Warner Bros. studio in a blockbuster $82.7 billion deal, absorbing both its film and television operations. This massive acquisition has sent shockwaves through the industry, sparking immediate concern for the future of movie theaters, especially given past comments from Netflix CEO Ted Sarandos.
A New Approach to Movie Releases
While Sarandos assured investors that films from the historic studio would still play on the big screen, he voiced strong opposition to the industry's traditional long theatrical windows. During a conference call on Friday, he clarified his position.
It’s not like we have this opposition to movies into theaters. My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer-friendly
The CEO hinted that while Warner Bros.’ current theatrical model won't be dismantled overnight, significant changes are on the horizon.
What 'Consumer-Friendly' Really Means
Warner Bros. had a banner year at the box office in 2025, with several major hits despite a couple of disappointments. Moviegoers have grown accustomed to seeing the studio's biggest films in theaters for an extended period. However, that tradition may soon be a thing of the past.
Sarandos explained that his vision involves evolving theatrical windows to become more aligned with viewer habits—in other words, prioritizing streaming availability.
I wouldn’t look at this as a change in approach for Netflix movies or for Warner movies. 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.
For the time being, fans can still catch the studio's upcoming movies in theaters, but the long-term stability of traditional release schedules is now in serious doubt.
A Major Blow to the Box Office
The potential shift away from theaters is a massive threat to the exhibition industry. Warner Bros. has long been a cornerstone of the business, with its films generating an estimated 25% of the total annual box office revenue. With theaters still struggling to reach pre-pandemic attendance levels, losing a significant portion of WB's theatrical slate could be devastating.
Michael O’Leary, President and CEO of Cinema United, voiced these exact fears, emphasizing the far-reaching consequences of the merger.
The negative impact of this acquisition will impact theaters from the biggest circuits to one-screen independents in small towns in the United States and around the world… 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.