Netflix pledges to preserve theatrical windows

Netflix’s planned takeover of Warner Bros. Discovery has thrust the streaming giant into the heart of Hollywood’s debate over the future of moviegoing. In an interview with Variety, Netflix co‑chief executive Ted Sarandos said the company would keep Warner Bros. films in cinemas for at least 45 days before adding them to its service if its $83 billion bid succeeds. That promise, he argued, would “win at the box office” while protecting the studio’s theatrical distribution engine. “Why would I want to break the model that works?” Sarandos said, noting that Warner hits like the “Harry Potter” franchise generate huge ticket sales.

Sarandos said Netflix had no intention of dismantling Warner’s distribution teams or forcing audiences to watch tentpole releases exclusively at home. Instead, he sees the acquisition as a way to leverage Warner’s library while giving Netflix an entry into exhibition. In 2024, Netflix negotiated a new output deal with Sony Pictures that gave Netflix first‑run streaming rights after a 45‑day theatrical window. Sarandos said that arrangement could be a blueprint for how it would treat Warner Bros. films. “Theatre owners don’t want day‑and‑date streaming because it cannibalises sales,” he acknowledged, adding that Netflix still believes in the cinema experience.

Implications for the film industry

The deal would mark the latest twist in the evolving relationship between streaming services and cinemas. During the Covid‑19 pandemic, studios like Warner Bros. released movies simultaneously on HBO Max, angering theatre chains and talent who feared diminished box office returns. With vaccines rolling out, studios gradually reverted to exclusive theatrical runs; but streamers like Netflix have continued to prioritise subscriber growth. Sarandos’ comments are an attempt to reassure sceptics that Netflix will not undermine the theatrical revenue stream. “We’re going to make a lot of movies. We need theatres to be successful,” he said.

Exhibitors remain wary. Cinema United, a coalition of independent theatre owners, has warned that vertical integration could give Netflix too much power over ticket prices and schedules. They have urged regulators to scrutinise the purchase under antitrust laws. Warner employees have also expressed concerns about potential layoffs and changes in creative leadership. For its part, Netflix faces questions about whether it can finance such a large cash‑and‑stock transaction while also investing in original content, games and technology. Analysts note that the company’s decision to raise subscription prices and crack down on password sharing has boosted revenue, but an $83 billion merger would still strain its balance sheet.

If the acquisition closes and the 45‑day window holds, other studios may feel pressure to rethink their own streaming strategies. Disney, for example, currently has a 90‑day window for many of its films; Paramount uses a flexible model. A unified approach from Netflix and Warner could encourage more consistency across the industry. At the same time, habits are shifting. Younger audiences accustomed to on‑demand viewing may balk at waiting six weeks to watch new releases at home. Sarandos said the company is exploring ways to offer premium digital rentals during the 45‑day window for viewers who cannot get to cinemas. He also hinted at investing in more immersive cinema experiences through technology upgrades and live events.

The merger must clear regulatory hurdles in the United States and Europe. Lawmakers have signalled they will evaluate whether it reduces competition or harms creators. Sarandos expressed optimism, saying that Netflix’s track record of partnering with independent cinemas and festival organisers demonstrates its commitment to exhibition. For now, the promise of a preserved theatrical window is likely to calm some industry fears even as the battle over streaming’s dominance continues. If Netflix succeeds in buying Warner and keeps audiences returning to theatres, it may prove that streaming giants and cinemas can coexist, at least for big‑budget tentpoles. The next few months will reveal whether the plan becomes a new normal or a temporary pledge amid a rapidly shifting media landscape.