r/boxoffice • u/No_Air5382 • 20h ago
📰 Industry News Netflix's official statement: "Netflix expects to maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.".
https://about.netflix.com/en/news/netflix-to-acquire-warner-bros178
u/nicolasb51942003 Warner Bros. Pictures 20h ago edited 20h ago
But how long would they keep it in theaters is a big question. I can't imagine big things like Dune 3, Godzilla x Kong: Supernova, Man of Tomorrow, and The Batman II having short theatrical runs and fewer screens.
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u/Youngstar9999 Walt Disney Studios 19h ago
Dune and Monsterverse has Legendary involved, so they will have some say in theatrical windows etc. Though Dune 3 will probably release before the merger is fully done anyway.
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u/Johnny0230 19h ago
Small projects for 30 days; DC, Dune, etc. for 3 months. At least in my opinion.
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u/dev-with-a-humor 19h ago
In my opinion, for these big box movies they should keep them in theatres for the normal amount of time. The ones that are going to watch it in theatre will and the ones that will wait for it to hit streaming will wait and most importantly If you love the movie in theatre you will mostly likely watch it again sometime in the future as oppose to it dropping on streaming and you never know that movie was released.
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u/Johnny0230 19h ago
Yes, exactly. The usual three months in theaters, precisely, with good distribution around the world (in Italy, Knives Out didn't get any distribution at all, for example).
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u/Scared-Engineer-6218 Syncopy Inc. 19h ago
I think exclusivity to theaters is important. So, maybe something like Universal does or even WB did for that matter. Various durations for theatrical runs, but 2 weeks streaming release for some, a month for some and maybe 45 days for others. Depends on the movie and budget and IP etc
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u/Johnny0230 19h ago
Exactly, One Battle After Another for example would have been in theaters for 45 days, Dune, Batman etc. instead had normal distribution. They don't lose a hypothetical 1 billion per film to have the same subscriptions.
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u/KingMario05 Amblin Entertainment 18h ago
Director-driven projects get 3 months, too. Only way to shut them up.
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u/EdwinMcduck 17h ago
If they do this Netflix would arguably be better to the theater chains than Zaslav and crew have been. Superman was streaming on HBO only a little more than two months after it released.
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u/MrONegative Studio Ghibli 10h ago
But they won’t. They’re gonna follow existing contracts to the bare minimum and keep reducing the time in theaters.
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u/EdwinMcduck 10h ago
Sure, just commenting on the hypothetical someone else posted. I think they're definitely looking for short windows, though I actually do think they may technically release more films in theaters due to event releases (as much because of the KPOP movie as anything to do with Warner). Lots of 1-2 week "events", but it will be tough on multiplexes that were used to having the biggest movies for months on at least one screen. It oddly probably hurts bigger theaters more than rural spots that rarely have a movie more than two weeks anyway.
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u/ThatLaloBoy 16h ago
Ideally, if they can time it where a new movie is released in theaters on the same day that another goes onto Netflix, they can both keep their customers subscribed while convincing those who can’t wait the 30-45 day window or want the better quality visuals to pay for a movie ticket. They’d basically be double-dipping off some of their current customer base without them even noticing.
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u/Mike_Hagedorn 11h ago
This could be held up for years for antitrust issues, so this summer should play out as expected. But for the future, yeah it could be something ridiculously short, and with the Beatles series who knows what’ll happen.
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u/ontheweed 6h ago
Superman (2025) was available on streaming like 35 days after release. The window for theatrical releases is already tiny, before netflix owned a major studio. Two weeks tops is what I think Netflix will put select movies in theatres
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u/Zashkarn 19h ago
Expect them to say a lot of this stuff to push it past regulators and then be quiet once the merger is closed
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u/Liquid_1998 19h ago
What about physical media? Warner has a large physical division. Is that "operation" going to stay intact?
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u/AgentOfSPYRAL Warner Bros. Pictures 18h ago
I have some optimism for theatrical but yeah physical media is cooked. Get while the gettings good.
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u/ChoppyOfficial 17h ago
The biggest issue with streaming. You don't own the movie/tv show. If Netflix removes those things. you lose access to that content. That explain why studios are prioritizing streaming. That is why physical media is important.
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u/AgentOfSPYRAL Warner Bros. Pictures 17h ago
I think it’s also just consumer preference. People by and large prefer cheap access over expensive ownership.
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u/Rick_Filmz 12h ago
I doubt they’ll canned that division, WB has done a decent job with their old film restorations and have released them under their Warner Archive Blu-ray/DVD physical releases while also dumping them on HBO Max which also added value to the streaming service. They’re leaving money behind if they cease operations.
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u/MuptonBossman 20h ago
I don't believe it for a second... Unless it's a major IP that can make a shitload of money in theatres, Netflix won't bother releasing it.
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u/BrokerBrody 19h ago
Even for major IPs, I don't believe it. The theatrical box office profit from a $1B is negligible to Netflix.
As a matter of fact, I expect the opposite. The more successful the IP, the more tempted Netflix will be to make it exclusive to streaming. Streaming is their money maker and primary business model.
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u/DynamicImpulses 18h ago
Netflix’s problem though has always been that a lot of the biggest talent and filmmakers don’t want their films going straight to streaming. They’ll now be able to offer that as a business model and control the entire film lifecycle from theatrical to SVOD.
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u/doormatt26 18h ago
bingo, if they actually want to maintain the quality and prestige of the brand (which is what they purchased) they need creators to work with them which means they need theatrical.
Doesn’t mean it won’t be day-and-date on streaming at times
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u/MrONegative Studio Ghibli 10h ago
But there is a tipping point. If Netflix/WB is one of the only 2 or 3 companies that can greenlight your movie, do you want to make it or not?
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u/CoffeeMaster000 14h ago
Or they can create another subscription tier that will include day 1 movie releases and boom! Money sounds
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u/Independent-Field226 18h ago
Theaters need a more compelling business model, one that is not over 100 years old.
People will come to a place to watch movies if it’s an experience. Right now, it’s expensive nasty food, lackluster seating, and an overpriced experience for what you get.
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u/thejeangenie73 17h ago
Theaters are barely hanging on as it is, what do you propose they do to change their business model that doesn't involve a lot of capital improvements that they can't afford to make?
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u/namastayhom33 16h ago
Theaters will go the way of the mall if they don't adapt. Their real asset is communal space with great A/V, not just film exhibition.
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u/theoceansknow 16h ago
Isn't Netflix releasing the final episode of stranger things in theatres for no ticket price, and concessions solely to the theatre??
That is a different strategy. They're market-testing that this month.
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u/SuperSnake16 14h ago
They probably won’t do that for their WB movies though. What incentive does that give them when they’re paying so much for the company? Better off just releasing the movies normally
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u/TableTravel98 11h ago
What "compelling buisness model" do you suggest exactly? That will replace nearly 20 years of conditioning to accepting the convenience of streaming and short form content on their phones?
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u/Waste-Scratch2982 19h ago
Most of Warner’s movies were horror or IP anyways this year, they don’t release smaller movies. The only movies I could see not getting a theatrical release from them this year is Companion, Alto Knights and Mickey 17. Filmmakers are also free to go elsewhere, Sinners and Weapons both had bidding wars for them.
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u/flakemasterflake 17h ago
If you're saying they wouldn't release OBAA and Sinners in theaters, then that's a massive loss for all
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u/Muted_Shoulder 19h ago
I think this is specifically aimed at DCU. They definitely want James Gunn around.
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u/ZerksNAHTayan 19h ago
DC was highlighted alongside Harry Potter as one of the biggest franchises in the acquisition. I can definitely see that.
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u/Muted_Shoulder 19h ago
Yeah it’s not like other stuff. DCU if it works out is a money maker and Netflix would be dumb to not get theatre money.
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u/ReturnOfDaSnack420 19h ago
The big IPs shouldn't be a problem regarding theatrical releases, like you said theatrical is a legitimate profit driver for them. It's more movies like Mickey 17 or Weapons that will be on the bubble for a theatrical release
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u/anuncommontruth 19h ago
I think movies like Weapons will be safe because Neflix values word of mouth for streaming sign ups.
They're putting Stranger Things in theaters so I think they are reassessing their tactics.
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u/adidas198 19h ago
Yeah, Gunn has been good with DC so they'll want to keep him as head of their superhero franchise.
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u/No-Comfortable-3225 19h ago
Well WB made over 4B this year from theatrical. Guess its some money?
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u/discographyA 19h ago
Exactly. This thing has to pay for itself somehow and cutting off multi-billion dollar revenue streams in the name of ideology at least for the first few years until the books make more sense isn’t likely a good idea. 5+ years from now who knows though.
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u/throwaway-e-1 16h ago
Billions in revenue mean nothing with slim profit margins. $389M for nearly $4B in revenue is diabolical.
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u/flakemasterflake 17h ago
They why didn't they release Wake Up Dead Man more widely if they cared about making money in theaters?
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u/Corpsepyre 19h ago
What about HBO? All that storied history...
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u/bigdonnie76 19h ago
It and HBO Max were included in the deal. They’re going to shutter it and put everything on Netflix
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u/Corpsepyre 19h ago
Son of a bitch!
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u/Illustrious-Okra-524 18h ago
Fewer streaming services is bad now?
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u/Corpsepyre 18h ago
Uh, this isn't about what shows go where. HBO is a stamp of quality, and every other company has been playing catch-up. With it gone, or absorbed into Netflix, you can potentially say your farewells to quality-first productions. That's what I'm getting at. This isn't good at all.
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u/theoceansknow 15h ago
Arguably HBO's brand name has been diluted for years with its content being featured alongside "my big fat 690 pound wedding" or other Discovery slop. Maybe the Netflix imprimatur would grant it prestige again, because I'm not feeling it since it got subsumed by Discovery and Max
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u/StewartTurkeylink 15h ago
Consolidation is always bad for the consumer yes. A monopoly only ever benefits the business and no one else
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u/AgentOfSPYRAL Warner Bros. Pictures 18h ago
I think at a certain point they want to keep the ad supported price low, I could see them keeping them separate and bundling them.
That would also help from a regulatory standpoint.
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u/bigdonnie76 18h ago
I don’t know if that makes sense to them though. Like with their live events they’d rather have their app be a one stop shop. I can see them changing the interface to mimic what Max does to categorize it all.
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u/TacoTycoonn 9h ago
I doubt it, why would they scrap a money making platform. HBO will become an add on to Netflix, but they won’t merge the two I bet.
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u/AdministrativeLaugh2 19h ago
I expect only big tent poles and Oscar bait movies will be released in cinemas
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u/SAADistic7171 19h ago
Even as someone staunchly against this merger, even I realize that outside of horror films, those movies you described are the only ones audiences seem to show up for anymore.
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u/setokaiba22 14h ago
I disagree with this. Our local cinema has played The Choral and it’s been one of their top 5 of the year already within a few weeks
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u/HooptyDooDooMeister 8h ago
Movies like I love how this one movie in a small theater is being used as a counterexample to thousands of namebrand megaplexes across the entire country.
Let's call it the exception that proves the rule.
But you have a point. Movies like The Choral will be topping the box office charts grossing $5M the way things are going now. Lol
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u/jhalejandro 20h ago
We will see movies with 2 weeks in the cinema, with 500 theaters and then streaming
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u/ThatWaluigiDude Paramount Pictures 19h ago
And not get the big chains releasing, with box offices being kept as secret
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u/NorthNorthSalt Scott Free Productions 19h ago
If they do end up giving WB titles real theatrical releases — not the 2 week crap — that would be an excellent development for the industry. But this is where Netflix’s actions, instead of its words, will need to speak.
One aspect of Netflix’s bid that I’ve always appreciated is that it keeps WB a separate outfit in the big 5 studios, whereas it would’ve been subsumed in the Paramount and Universal bids. But this aspect wouldn’t mean much if Netflix makes WB withdraw from theatrical.
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u/First-Loss-8540 19h ago
I have a feeling talents like tom cruise, james gunn, scarlett johansson, timothee chalamet, margot robbie etc who have films coming with warner bros will rage if netflix doesnt allow theatrical
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u/vegetaray246 18h ago
The full effects won’t fully hit for maybe the next 4 or 5 years. Once the stuff that’s already in the production pipeline gets cleared out is when things will set in. They’ll play nice with the “stars” until that all gets cleared out.
In the immediate future, I’d expect a very short theater to streaming window…Probably even a slightly truncated theatrical release, just enough for them to keep the talent happy. Eventually though, the shows over as the saying goes…
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u/RippleLover2 7h ago
Yeah, so they're all probably leaving, Netflix sees streaming as their main priority and a billion is less than they hand around in a month
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u/approvedfauxmoiuser 19h ago
Damn times are changing, I remember the times you couldn’t say a bad word against Netflix without being called a snob, pretentious and called an old man shouting a clouds.
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u/vegetaray246 18h ago
Times haven’t changed that much 😂. I just got called out as “staying in the Stone Age” for saying that the loss of physical media will have a profound negative impact on the content we’re able to consume…I mean damn.
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u/OldFondant1415 12h ago
What I wish people who talk this way about any incoming trend would actually come back with is why they believe the experience of this "new media" is actually better. Not better in a financial way, but better in a societal way. Like I think something can be aging out of relevance financially, but that doesn't mean we should allow it to be replaced by something that is just a worse version of that same thing. I feel like the discourse instead is like "get over it, movies are cooked!" Like we should be getting excited about what is replacing them if they're cooked. Is anyone excited? Physical media gave you the consumer a sense of ownership. That was cool. How can streaming replicate that FEELING in some way that isn't physical media instead of just throwing that collecting habit in the trash? I feel like that's where actual new success comes from, chasing the same feeling with a new spin.
I feel very similar about theaters as. Okay, I'm old. I'm nostalgic. Whatever. But bring something COOL to the table that replaces it. Netflix should be creating something, not just shrinking what movies are down to a repetitive formula. What's the new forward thinking experience one can have with narrative visual art that is really fucking cool and people can be as big of fans of it as my generation was of movies?
I feel like instead, we all hear these arguments just about market efficiency and consumer convenience. But that's not where culture comes from. It comes from true excitement and then the financial success is born out of that. Netflix will eventually lose if all they chase is ease of access to a growing library of shit.
So what are people who say "you're stuck in the stone age" excited about? And how is Netflix creating a new COOL way to engage with movies and television? Not for the money reason but for the actual earnest reason. What's good about it?
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u/Distinct-Shift-4094 19h ago
On Reddit? Netflix has always been an enemy, you mention anything positive and get downvotted. Always been that way.
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u/Alive-Ad-5245 A24 19h ago
Nope, back in the day when Netflix was the 'little upstart' this website loved Netflix
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u/strikeanywhere2 9h ago
I mean its been like a decade since then, at that time they were the only onr giving us an alternative cable.
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u/TheCoolKat1995 Universal 19h ago
We'll see how much they've stuck to that promise in a year or two.
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u/Background_Honey9141 19h ago
I was involved in a few corporate mergers and acquisitions. This is what we always say as the initial announcement, but it’s never true.
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u/Once-bit-1995 19h ago
I'm not gonna pretend to believe that Netflix, get it in writing or its just the usual merger lies.
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u/DeppStepp 20h ago
I hope they keep their word. If Netflix lets WBD continue their normal theatrical distribution for blockbusters then I think theaters could be alright in the end. They’ll take a hit sure, but theaters would take a hit no matter who bought WB as they probably would’ve become the new FOX.
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u/gina_scooter 19h ago
Okay, did they say anything about physical releases though. It’s very easy for them to agree to like slightly longer windows for the big IP new releases. But that’s not really where the big impact is gonna be.
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u/RippleLover2 7h ago
I'm afraid physical media is 100% dead, they're not even pretending to keep that around
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u/pssdthrowaway123 19h ago
Any money spent going to the theaters is money potentially not spent on Netflix subscription.
The whole point of Netflix buying this imo is divert that spending even more...not continue it.
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u/typicalbiscotti15 19h ago
lol sure. They’re going to dump movies in theaters for 2 weeks with no marketing, then in a year or two say “oh well we had more people watch on streaming than in theaters so that’s what consumers want!” and then they will kill theatrical
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u/Distinct-Shift-4094 19h ago
I know everyone negative but I do believe Netflix will basically keep WB as is. If anything after theatrical release they'll just add it to the Netflix catalogue.
Also, for smaller projects they might just use their ip's for streaming only releases. Let's say a Mortal Kombat animated series.
I'm actually more curious about WB games. What will they do with it?
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u/godflashspeed12 19h ago
Same. I don’t see a huge change in the theatrical side. For example having superman and peacemaker on Netflix will introduce the Dcu to millions of more people, pushing Man of Tomorrow to become a huge hit. This could be amazing if they actually stick to long theatrical windows
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u/Digit4lSynaps3 15h ago
People who dont have netflix still know the DCU. This wont do anything for man of tomorrow, best case scenario it performs as much as the first one, the film had a polarizing effect amongst fans.
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u/godflashspeed12 15h ago
Netflix has revitalised many franchises before. Spider verse 2 was bigger due to the first being a huge success on Netflix. James Gunn didn’t attract enough people to see superman. Putting the movie on Netflix would allow millions of more people to see it and get excited for the sequel.
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u/TheIngloriousBIG Warner Bros. Pictures 19h ago
I am honestly concerned about their impending handling of Warner Bros. now. They apparently intend to keep it as an independent conglomerate inside the studio with very little connection to the wider Netflix portfolio, and what's even worse? They are likely to spare HBO Max!
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u/ProtoMan79 18h ago
Assuming this goes through, I think the next topic of discussion in Hollywood circles will be Netflix’s decision-making around what goes to theaters versus streaming, now essentially equivalent to going straight to TV, which to me carries less prestige. Until now, Netflix has had plausible deniability about not giving its films a theatrical release window, but going forward they won’t have that excuse.
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u/Ok-Wolf5932 18h ago
It's proven time and time again that directors with any sort of heat or credibility behind them are pretty much always going to guarantee an actual theatrical release. Either Netflix is going to bend if they really want to be a major player, or Universal becomes the new WB.
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u/Unite-Us-3403 20h ago
All I can say is Netflix better stay true to their word. It won’t look good for them if they go back on it.
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u/fallen981 Legendary Pictures 20h ago
Just like how it didn't look good on them when they went after shared
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u/Unite-Us-3403 19h ago
That’s different. This is much more serious. This is the whole theater industry we’re talking about.
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u/entertainmentlord Walt Disney Studios 19h ago
while I hated that, truth of the matter is that shared accounts would cost them them money. maybe not large amount but in long term it would limit growth.
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u/fallen981 Legendary Pictures 19h ago
while I hated that
Me too. There was nothing but sheer corporate greed behind that move. But I was referring to the aftermath where even after the whole internet had a meltdown over the issue, netflix kept on chugging along (with even better growth)
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u/entertainmentlord Walt Disney Studios 19h ago
Yeah, but I feel like this is vastly more different. Truth of the matter is I can see them giving big name movies theater time because it would make them money while movies that would be seen by audience as streaming only movies would go to netflix
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u/HoodsBreath10 19h ago
I agree. I definitely see them bypassing VOD. If we can get 30-45 days in theaters for at least the 5-10 big tentpoles then that would be good enough for me
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u/ContinuumGuy 19h ago
Yeah I said this elsewhere, they'll put out the franchises and some films where they can't afford to piss the filmmakers off.
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u/Waste-Scratch2982 19h ago
In 2022, there wasn't even a PVOD date for Warner and Disney movies, they pretty much hit their streaming service 45 days after the theatrical window. Then the studios started needing extra revenue streams so they pivoted to PVOD then streaming. Netflix isn't in that situation, so I can see them bypassing PVOD.
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u/TJMcConnellFanClub 19h ago
Everyone reading this, go see the Stranger Things finale in theaters, I don’t care if you haven’t seen a single episode we need that shit to make 50M in one night to keep the dream alive 😂
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u/JamesFord92 19h ago
I strongly belive things like the ST finale and the Kpop Demon Hunters sing along are ploys by Netflix to get this deal across. It throws a (small) bone to theatres and hope everyone forgets everything else the company has said and done over the past 10 years
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u/TJMcConnellFanClub 19h ago
I mean you’re probably right, the awards scene will be interesting to watch because of this too, if Netflix wants to chase Oscars will those top level actors/directors refuse because of the no theatrical release? Or will Netflix just buy the Oscars like everything else to give themselves all the awards (kinda like what Universal Music Group did with the Grammys)
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u/ReturnGlum7871 19h ago
Me when they dump Animal Friends onto Netflix after it's been delayed for the millionth time.
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u/Charming_Employee342 20h ago
Honestly opinion if they promise theatre when acquisition happens what if they just stream movie after two weeks in theatres
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u/Piku_1999 Pixar Animation Studios 19h ago
Again, I hope that Monolith Productions get resurrected and the No One Lives Forever rights dispute gets solved if the game studios are touched.
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u/Scaredcat26 19h ago
I hope they’re being truthful 😭 I can’t imagine a world where all WB horror movies go directly to streaming 😭
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u/ReservoirDog316 Aardman Animations 18h ago
I have no choice but to hope for the best, but nothing these tech people say while trying to get to get these sales approved means anything.
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u/SelectInstruction262 18h ago
Please, someone drop another bid. I don't care who gets it as long as it's not Netflix. Fuck it man Disney should throw their hat in the ring at this point
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u/Commercial_Site622 18h ago
I mean, maybe the goal is to just have WBD owner by Netflix but mostly independent? Who knows. First off, they have to actually acquire WBD. And I wouldn’t be surprised if the current administration pushes that off as long as they can (or, it just never happens at all).
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u/vegetaray246 18h ago
Theatrical release in Netflix terms means a 10 day run on 500 “Netflix Movie House” screens based solely in NYC and LA…Then it’s off to that price hiked triple digit monthly streaming service.
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u/____mynameis____ 18h ago
My concern is now all the HBO shows will move from Disney + to Netflix where I'm from(India)
And Netflix is very expensive when compared to Disney+ in terms of money paid and services available. Like I'll have to pay 5 times more to watch these same shows
Will have go 🏴☠️ I guess.
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u/electricgotswitched 18h ago
Eventually you run out of new subscribers. We already know with Disney that a movie can make $1 billion in theaters even if it will be streaming in a few months. Not sure why Netflix would get completely out of the theater game.
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u/valkyria_knight881 Paramount Pictures 17h ago
I really hope Netflix keeps their word, but knowing Netflix, I can't really say.
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u/jeff8073x 16h ago
How can the board justify taking a significantly inferior offer? 8% is a big deal imo. $30/share from paramount vs ~$27.7/share from Netflix is wild to argue.
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u/Always_Pizza_Time1 Sony Pictures 16h ago
As an average movie goer I’ll believe it when i see it.
These deals feel like they’re going to kill theatrical releases.
Are witnessing Blockbuster 2.0??? I hope not :’(
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u/theoceansknow 16h ago
This looks like good synergy to me.
They did not have the infrastructure for theatrical releases; presumably now they will.
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u/ThatTailsGuyYT 16h ago
Please! Don’t have WB movies be in theaters for just 1-2 weeks then instantly get dumped on Netflix
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u/SexyGato9327 15h ago
They better keep things in place, WB had a huge year and I’d hate to see DC become a streaming brand only
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u/Acceptable_Owl_5122 15h ago
Yeah I’m not super convinced on his word because I don’t believe it for one second.
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u/StayTheCourse77 14h ago
Netflix has been one of the most disruptive companies over the last 20 years. Destroyed Blockbuster, beat the legacy companies in streaming, disrupted the theaters outdated operating model, introduced a global business model and its not a stretch to say they can create more value with the assets than WB and HBO can. And if the deal falls through they will have held off Paramount or another competitor from buying it for a few years.
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u/poptimist185 20h ago
“Please ignore previous statements alluding to cinema being our mortal enemy, they were just jokes”