Netflix Reveals How Long Its Movies Will Stay in Theaters if Warner Bros. Deal Happens

Netflix co-CEO Ted Sarandos said the company plans to keep Warner Bros. movies in theaters if its $83 billion deal to buy the studio goes through. In an interview with the New York Times on Friday, Sarandos said Netflix would maintain a 45-day theatrical window for Warner Bros. films.

“When this deal closes, we will own a theatrical distribution engine that is phenomenal and produces billions of dollars of theatrical revenue that we don’t want to put at risk. We will run that business largely like it is today, with 45-day windows,” Sarandos said. “I’m giving you a hard number. If we’re going to be in the theatrical business, and we are, we’re competitive people — we want to win. I want to win opening weekend. I want to win box office.”

Sarandos explained that Netflix executives initially had doubts about the movie business, but they discovered it is healthier and more profitable than expected. “A lot of assumptions we had about Warner Bros.’ business turned out to be false. The general economics of the theatrical business were more positive than we had seen and we had modeled for ourselves. It’s a healthy, profitable business for them,” he said.

Netflix’s plan to acquire Warner Bros. TV and film studios, including HBO Max, has faced criticism from the industry. Cinema United, a theater trade group, warned Congress that the deal could lead to fewer movies, job losses, and theater closures.

Sarandos said he was not surprised by the backlash. “I think it was a lot of loud voices, but not necessarily a lot of them. I think a lot of it was folks who questioned, rightfully so, our intent with theatrical because we hadn’t said anything about it. A lot of it was the emotions around that more than anything else,” he said.

He also noted that the deal is not finalized yet, since David Ellison’s Paramount Skydance is pursuing a hostile takeover and wants to install directors on Warner Bros.’ board who support its offer. “What people would like to see is no deal. But that’s not possible. There are two outcomes of this deal, and we have a signed deal done,” Sarandos said.

Sarandos emphasized that Netflix is not against theaters. “We weren’t in that business not because we hated it. We weren’t in that business because our [streaming] business was doing so well,” he said.

Netflix has also seen benefits from special theater releases of its own films and shows. Sarandos pointed to the New Year’s Eve run of the “Stranger Things 5” finale and the limited release of “KPop Demon Hunters.” “You give people a reason to leave the house, they will gladly leave the house,” he told the Times.

Sarandos addressed past comments calling moviegoing “outmoded,” saying he meant it only applied to some areas without nearby theaters. “You have to listen to that quote again. I said ‘outmoded for some.’ I mean, like the town that ‘Sinners’ is supposed to be set in does not have a movie theater there. For those folks, it’s certainly outmoded. You’re not going to get in the car and go to the next town to go see a movie. But my daughter lives in Manhattan. She could walk to six multiplexes, and she’s in the theaters twice a week. Not outmoded for her at all,” he explained.

While Netflix plans to keep Warner Bros. movies in theaters, Sarandos hinted that release windows may shrink over time to become more “consumer-friendly.”

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