Netflix co-CEO Ted Sarandos has reiterated the company’s dedication to maintaining traditional theatrical windows for Warner Bros. films, should its proposed $82.7 billion acquisition of Warner Bros. Discovery be finalized. During an unexpected appearance at a Canal+ Group event in Paris on March 12, 2024, Sarandos emphasized that the plan would involve continuing the release of Warner Bros. movies in theaters, aligning with established industry practices.
Sarandos explained that Netflix’s prior reluctance to engage in theatrical distribution stemmed from not having the necessary infrastructure. He stated, “We never got into it before because we never owned a theatrical distribution mechanism.” He added that Netflix’s growth strategy relied heavily on monetizing films through its subscription model.
Concerns have emerged within the industry regarding the potential impact of a Warner Bros. acquisition on the theatrical business. Sarandos sought to address these apprehensions, noting that Netflix has been focused on original content for just over a decade while Warner Bros. boasts a century-long legacy in film production and distribution. He remarked, “Our library only extends back a decade, whereas Warner Bros. stretches back a hundred years. They know a lot about things we haven’t ever done, like theatrical distribution.”
Future of Content Collaboration
During the event, Sarandos participated in a discussion with Maxime Saada, Chairman and CEO of Canal+ Group. Saada inquired about the potential for continued collaboration between Netflix and Canal+ following the Warner deal. Sarandos indicated that Netflix would remain competitive for high-profile programming and specialized sports events, such as major boxing matches. He affirmed, “Our primary mission is film and television.”
Saada expressed appreciation for Netflix’s role in transforming the French television landscape. He highlighted that before Netflix’s entrance, only about 30 percent of French citizens were willing to pay for television services. Following Netflix’s arrival, that number has risen to approximately 75 percent.
The event also showcased the commitment of Canal+ and its production arm, StudioCanal, to theatrical releases. StudioCanal CEO Anna Marsh announced a new film project titled Elsinore, starring Andrew Scott and Olivia Colman, further emphasizing the importance of cinema in the evolving entertainment landscape.
As the negotiations for the Warner Bros. acquisition continue, Sarandos’s statements reflect a broader strategy to integrate traditional theatrical practices with Netflix’s innovative approach to content distribution. This dual focus aims not only to enhance Netflix’s film offerings but also to contribute positively to the theatrical ecosystem.
