Daijiworld Media Network - Los Angeles

Los Angeles, Jan 17: Netflix has sought to allay fears in Hollywood by making it clear that it does not intend to weaken Warner Bros’ theatrical business if its proposed acquisition of Warner Bros Discovery’s studios and streaming assets goes through. Instead, the streaming giant says it is ready to compete aggressively at the box office.

In an interview with The New York Times published on Friday, Netflix co-CEO Ted Sarandos said Warner Bros films would continue to receive proper theatrical releases, including a 45-day exclusive window in cinemas before moving to streaming platforms.

“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,” Sarandos said. “We will run that business largely like it is today, with 45-day windows. I want to win opening weekend. I want to win box office.”

Sarandos admitted that Netflix’s understanding of Warner Bros’ theatrical economics evolved after closer scrutiny. “The general economics of the theatrical business were more positive than we had modelled. It’s a healthy, profitable business for them,” he said.

Netflix’s proposed $83 billion acquisition has triggered strong resistance across Hollywood, particularly from theatre owners who fear fewer theatrical releases, job losses and cinema closures. Theatre trade body Cinema United has even warned US lawmakers about potential fallout if the deal is approved.

Responding to the backlash, Sarandos said much of it stemmed from uncertainty over Netflix’s intentions. “It was a lot of loud voices, but not necessarily a lot of them. A lot of it was emotions around that more than anything else,” he said.

The deal, however, is not yet final. Paramount Skydance, led by David Ellison, has launched a hostile takeover bid for Warner Bros Discovery and is pushing for a proxy battle to reshape the company’s board. On the industry reaction, Sarandos said many would prefer no deal at all, but added, “That’s not possible. There are two outcomes of this deal, and we have a signed deal done.”

Sarandos also clarified that Netflix’s limited theatrical presence in the past was driven by business priorities rather than ideology. “We weren’t in that business because our streaming business was doing so well,” he said.

Netflix has already experimented with theatrical releases, including special screenings for the Stranger Things 5 finale and limited runs of KPop Demon Hunters. According to Sarandos, these experiences showed that audiences will still turn up when cinema feels like an event. “You give people a reason to leave the house, they will gladly leave the house,” he said.

Addressing criticism over his earlier remarks describing moviegoing as “outmoded”, Sarandos clarified that he meant it was outmoded for some audiences with limited access to theatres, not for those in major cities.

Despite Netflix’s assurances, concerns remain, particularly after Sarandos previously indicated that theatrical windows could eventually shrink to become more “consumer-friendly”.

Separately, Netflix announced on Thursday that it has renewed and expanded its multiyear global film output deal with Sony Pictures Entertainment, a pact valued at over $7 billion across several years, according to industry sources.