Netflix Courting Warner Bros with a Pledge to Keep Movies in Theaters

Netflix Inc. has been talking with the leaders of Warner Bros. Discovery Inc., and according to insiders, Netflix has said it would keep putting Warner Bros. movies in theaters if it buys the company.

Insiders didn’t want their names shared because the discussions are private. They also said that Warner Bros. already has contracts that require theatrical releases, and Netflix plans to stick to those deals.

This is a big shift for Netflix. The company has always focused on streaming and usually avoids sending its own movies to theaters, except for short runs to qualify for awards. Even so, the idea of owning Warner Bros.’ long history of films, plus the legal agreements already in place, seems to have changed its thinking.

Warner Bros. put itself up for sale last month after getting interest from several companies. Paramount Skydance Corp. showed interest, and so did Comcast Corp., which owns NBCUniversal.

Netflix is also in the running, hoping to buy both the studio and the streaming parts of the business. All bids are expected to be submitted on Thursday. If Netflix ends up buying Warner Bros., it would be the biggest deal the streaming company has ever made. Netflix executives have already made a presentation to Warner Bros. management about their plans.

People in the movie industry are worried that a deal like this could shrink the number of major studios and reduce the amount of big films going to theaters.

Netflix co-CEO Ted Sarandos has said in the past that movie theaters are fading, saying “theaters are a declining business,” and he has made it clear that the company cares most about its streaming audience.

Still, with this potential deal, Netflix is telling Warner Bros. that it will respect the theatrical model.

Have something to add? Let us know in the comments!