Netflix’s Ted Sarandos Commits to Theatrical Releases for Warner Bros. Films

Netflix co-CEO Ted Sarandos has reaffirmed his commitment to maintaining traditional theatrical release windows for Warner Bros. films, should Netflix’s proposed $82.7 billion acquisition of Warner Bros. Discovery proceed. During a surprise appearance at an event in Paris organized by the Canal+ Group, Sarandos emphasized the importance of continuing to release Warner Bros. studio movies in theaters.

Sarandos stated, “Our intentions when we buy Warner Bros. will be to continue to release Warner Bros. studio movies in theaters with the traditional windows.” This declaration comes at a time when there are growing concerns among exhibitors and various industry stakeholders regarding the potential impact of the deal on the theatrical business.

The Netflix executive explained that the company had previously avoided theatrical distribution because it lacked the necessary infrastructure. “We were monetizing movies through our own subscription because that’s how we were growing the business the fastest,” he said. He highlighted that Netflix has been focused on original content for just over a decade, while Warner Bros. has a rich history extending back a century in theatrical distribution.

In his remarks, Sarandos noted the rapid growth of Netflix’s library. “We have made everything we have greenlit, so it’s not a very deep development pool,” he said. “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.”

The conversation took place during an interview conducted by Maxime Saada, chairman and CEO of Canal+ Group. Saada queried whether Netflix would continue its relationship with Canal+ following a potential Warner deal. Sarandos responded that Netflix intends to compete for event programming and specialized sports, such as major boxing matches, while affirming, “Our primary mission is film and television.”

Saada expressed gratitude to Netflix for its role in increasing the willingness of French audiences to pay for content. He remarked, “Before you showed up, we had approximately 30 percent of French people willing to pay [for] TV. Netflix showed up in France with your proposition and user experience, and you convinced the French to pay, and now the penetration of paid television is 75 percent.”

The event also featured Anna Marsh, CEO of StudioCanal, who reiterated the company’s commitment to theatrical release windows while unveiling a new film project titled Elsinore, starring Andrew Scott and Olivia Colman.

As the landscape of film distribution continues to evolve, Sarandos’s comments signal a potential shift in Netflix’s strategy, focusing more on traditional distribution methods while expanding its reach through significant acquisitions.