Netflix has reportedly told Warner Bros. Discovery brass that the streamer will release the Burbank lot’s movies in theaters, should a merger of the two conglomerates go through.
Bloomberg reported on the news.
Sources tell Deadline that it makes sense that Netflix would be required to meet filmmaker contractual obligations from movies absorbed from a potential merger. However, what happens thereafter following a Netflix purchase of Warner Bros, remains unknown.
Netflix has used theatrical to qualify auteur driven movies like Alfonso Cuaron’s multi-Oscar winner Roma and Martin Scorsese’s The Irishman for Academy Awards consideration. The streamer, which has largely resisted committing to a wide global theatrical release for even their most expensive $200M-plus movies like Red One and Grey Man, has also used theatrical for stunting purposes, i.e. their limited release of Rian Johnson’s Wake Up Dead Man: A Knives Out Mystery over next week’s Thanksgiving stretch, and the late August 2-day release of Kpop Demon Hunters Singalong in theaters which ranked No. 1 with $19M; Netflix’s first movie to hit No. 1 at the domestic box office. Currently, for next year, there’s a windowed Imax theatrical release planned for Netflix’s Narnia movie from Greta Gerwig.
In addition to the David Ellison Paramount, Netflix and Comcast Corp. are interested in absorbing Warner Bros Discovery. Bids for Warner Bros Discovery are due Thursday.
There’s skepticism in town over a Netflix commitment to theatrical. Why? Because co-CEO Ted Sarandos has said repeatedly on various earnings calls to investors that the streamer isn’t varying their distribution strategy. They’re about first run movies on Netflix first. In fact, Sarandos credited the momentum of Kpop Demon Hunters, the streamer’s most watched movie ever, as propelling the pic’s box office, that title’s theatrical release opening roughly two months after its drop on the OTT service.
Cinema United Boss Michael O’Leary told Bloomberg, “Netflix’s apparent agreement to abide by existing contractual obligations that they might inherit says nothing about a meaningful commitment to theatrical exhibition.”
O’Leary further tells Deadline this AM, “True commitment to theatrical involves a robust slate of movies in theatres with a meaningful period of exclusivity supported by marketing.”
Again, the concern is with any kind of purchase of WBD, less movies, which means lower box office, which means even more stress on exhibitors post strikes and Covid.
Warner Bros and Netflix didn’t respond to request for comment.