Los Angeles, 6 Dec

Netflix's deal to acquire Warner Bros, one of Hollywood's oldest movie studios, poses seismic shifts to the entertainment industry and the future of movie-watching.

As one of the remaining “big five” studios, the 102-year-old Warner Bros is an essential part of the movie theatre business.

The studio currently boasts three of the top five earning films domestically, including ‘A Minecraft Movie’ in first place, ‘Superman’ and ‘Sinners’, as well as the Oscar frontrunner, ‘One Battle After Another’.

There are more questions than answers about how ownership from a streaming giant would change things for Warner Bros. It's not even clear if it will pass antitrust scrutiny, or, if it does, what the details will look like.

Here are some things to know, and lingering questions, in the wake of the news.

Will Warner Bros. continue releasing movies in theatres?

Yes, but it might change as well. For starters, it'll be at least 12 to 18 months before the deal officially goes through and moviegoers can expect essentially business as usual until then.

Netflix co-CEO Ted Sarandos said Friday that they will ‘continue to support’ a ‘life cycle that starts in the movie theatre’ for Warner Bros movies. But he also commented that he doesn't think that ‘long exclusive windows’ are consumer friendly.

With the rise of streaming, and especially in the pandemic era, studios experimented with different theatrical windows. For many years, a 90-day theatrical window was standard, but now it's closer to 45 days and often a film-by-film decision.

Netflix and movie theatres

Netflix does release some films theatrically, but not usually more than a few weeks before they hit streaming. Sometimes that's to qualify for awards eligibility, sometimes it's a gesture to top filmmakers. This year those releases included Guillermo del Toro's ‘Frankenstein’, Kathryn Bigelow's ‘A House of Dynamite’ and Noah Baumbach's ‘Jay Kelly’.

Major chains like AMC and Regal had refused to program Netflix releases until 2022, when enthusiasm for the ‘Knives Out’ movie ‘Glass Onion’ helped break the stalemate.

Earlier this year, ‘KPop Demon Hunters’ unofficially topped the box office charts, earning nearly USD 20 million from a one-weekend run in theatres two full months after it debuted on the streamer.

Netflix also owns and operates several movie theatres, including the Paris Theater in New York and the Egyptian Theatre in Los Angeles.

Upcoming Warner Bros. movies

The studio has a diverse slate of films expected in 2026, with high profile titles including the Margot Robbie-led ‘Wuthering Heights’ in February, ‘Supergirl’ in June, ‘Practical Magic 2’ in September, Alejandro Inarritu's untitled Tom Cruise movie in October and Denis Villeneuve's ‘Dune: Part Three’ in December.

Movies planned for 2027 include sequels to ‘Superman’, ‘A Minecraft Movie’ and ‘The Batman’.

Earlier this year the company said its target was 12 to 14 releases annually across its four main labels, Warner Bros Pictures, DC Studios, New Line Cinema and Warner Bros animation.

What does it mean for movie theatres?

So much of this depends on the details, but Cinema United president and CEO Michael O'Leary said hours before the news broke that it posed ‘an unprecedented threat to the global exhibition business.’

He added: ‘Regulators must look closely at the specifics of this proposed transaction and understand the negative impact it will have on consumers, exhibition and the entertainment industry.’

Theatrical exhibition has not fully recovered since the pandemic. Before 2020, the annual domestic box office regularly surpassed USD 11 billion. Since then it has only surpassed USD 9 billion once, in 2023, driven largely by ‘Barbie’, a Warner Bros. release.

How will top filmmakers react?

It's too early to tell, but Warner Bros. has always prided itself on being one of the premier homes for top filmmakers, this year releasing films from Paul Thomas Anderson, Ryan Coogler and James Gunn.

Other longstanding relationships include Villeneuve, who has ‘Dune: Part Three’ coming next year, Clint Eastwood and Todd Phillips. Much likely depends on whether robust theatrical releases will be honoured — many of these filmmakers are vocal champions of the theatrical experience and may not stick around if it shifts.

The studio's controversial decision to release films simultaneously in theatres and on HBO Max in 2021 during the pandemic led to a rift with Christopher Nolan, who after making eight major films with the company, including the ‘Dark Knight’ trilogy, partnered with Universal to make his next two films, ‘Oppenheimer’ and next year's ‘The Odyssey’.

Will HBO Max and Netflix become one service?

That's also unclear. If the two platforms remain separate subscriptions, there may be ‘bundling’ options, as with Disney and Hulu. Netflix on Friday said that the addition of HBO and HBO Max programming will give its members ‘even more high-quality titles from which to choose’ and ‘optimise its plans for consumers.’

The Warner Bros. library of films includes classics like ‘Casablanca’ and ‘Citizen Kane’ as well as the ‘Harry Potter’ movies.