Netflix’s $82.7B Warner Bros Deal Could Shake Up Movie Theaters

After months of rumors and anticipation, Warner Bros has finally landed a buyer. Netflix is preparing to purchase the iconic studio for a staggering $82.7 billion, a deal that covers both its film and TV operations. With Warner Bros’ long-standing influence on the movie theater industry, many are now wondering what this acquisition could mean for the future of the big screen, especially in light of CEO Ted Sarandos’ previous comments about theatrical releases.

Netflix’s Vision for Warner Bros Releases

While Sarandos has promised that Warner Bros films will continue to premiere in theaters, he’s made it clear he’s not a fan of lengthy exclusive theatrical windows. During a recent investor call, he explained,

It’s not like we have this opposition to movies into theaters. My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer-friendly

Although there are no immediate plans to overhaul Warner Bros’ established release strategy, Sarandos hinted that changes could be on the horizon. He suggested that, over time, the traditional window between theatrical and streaming releases might shrink, making films available to audiences at home much sooner.

Shorter Windows Could Be the New Normal

Warner Bros had a standout year in 2025, with several box office hits despite a few disappointments. Fans can still expect to see upcoming movies from the studio on the big screen for now. However, unlike previous years, the period these films spend in theaters before hitting streaming platforms could be significantly reduced.

Sarandos elaborated on his approach, saying that the industry’s release windows will gradually become more “consumer-friendly”, meaning viewers will be able to watch new releases at home much faster than before.

I wouldn’t look at this as a change in approach for Netflix movies or for Warner movies. I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker.

For now, the traditional release model remains in place, but the writing is on the wall for a shift toward streaming-first strategies.

Impact on Theaters and the Box Office

Warner Bros has long been a cornerstone of the theater business, accounting for about a quarter of annual box office revenue. With theaters still struggling to recover from the pandemic, losing the studio’s major releases could be a serious blow to the industry.

Michael O’Leary, President and CEO of Cinema United, voiced his concerns about the merger’s potential fallout. He warned that the deal could negatively affect theaters of all sizes, from major chains to small-town independents.

The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world… Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite. 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.

Only time will reveal how this massive merger will reshape the landscape for theaters and movie lovers alike.