As news broke of Netflix’s intention to acquire Warner Bros. Discovery’s TV and film studio, concerns arose about the future of the traditional moviegoing experience. Despite Netflix’s reassurances to maintain current operations, including theatrical releases, skepticism lingers within the industry regarding the streaming giant’s commitment to cinema releases.
The $72 billion US deal between Netflix and Warner Bros. Discovery is pending regulatory approvals, while Paramount Skydance has initiated a competitive takeover bid amounting to $108.4 billion US. Industry experts acknowledge the enduring appeal of movie theaters but note that rising costs necessitate a compelling reason for audiences to visit. Analysts suggest that both theater companies and studios must enhance marketing efforts to emphasize the relatively affordable nature of the cinema experience.
Michael O’Leary, CEO of Cinema United, expressed concerns over Netflix’s acquisition, labeling it as an unprecedented threat to the global exhibition business. O’Leary criticized Netflix’s limited theatrical releases, which he views as primarily aimed at securing award recognition rather than supporting traditional cinema showings.
Serena Whitney, program director of Toronto’s Revue Cinema, voiced apprehension about the potential impact on independent theaters if Netflix alters Warner Bros.’ distribution strategies. The ongoing debate over exclusive theatrical windows has intensified, with Netflix emphasizing shorter release windows to adapt to evolving consumer preferences.
Alicia Reese, a media analyst, highlighted the risk of training audiences to bypass theatrical releases with shorter windows, potentially diminishing theater revenue. While Netflix has pledged to uphold existing commitments to theatrical releases until 2029 or 2030, uncertainties persist regarding its long-term strategy post-acquisition.
The bidding war for Warner Bros. has reignited discussions on the future of moviegoing, prompting reflections on the enduring appeal of cinemas amid the rise of home entertainment options. Reports indicate a need for theaters to reposition themselves as premium destinations, offering unique experiences that justify the cost of admission.
In Canada, the cinema industry showed growth in 2024 but struggled to recover fully from the pandemic’s impact. The key takeaway is that audiences require compelling incentives to return to theaters, underscoring the industry’s need to innovate and enhance the overall cinema experience.