As the Warner Bros. Sale Heats Up, Movie Theaters Still Don’t Trust Netflix’s Promises
After what’s felt like months of Paramount going through an embarrassment ritual in the looming merger between Warner Bros. and Netflix, it appears that things are back on the negotiation table. While Paramount and Warner Bros. are still hashing out figures, Netflix is having its feet put to the fire by Cinemark’s CEO, stressing that the streamer must do more to prove that it actually likes movie theaters. Netflix and Warner Bros. were seemingly ready to seal the deal, with the former potentially buying the latter to the tune of $83 million, after months of the latter shopping itself around to other platforms and getting left on read. But in the wake of the deal’s announcement, Paramount has been shouting foul, touting the merger as detrimental to the industry while also making a counteroffer to buy Warner Bros. Discovery. Paramount’s effort appeared to be in vain until recently, with Warner Bros. reportedly entering into “clarity” and “best final offer talks” with Paramount Skydance before its shareholders vote on the deal by March 20, according to Variety.
In short, no one has been happy about Netflix’s acquisition of Warner Bros., including the Writers Guild of America and Avatar director James Cameron. But to the rest of us peons who don’t really care about all that above-board bureaucratic theater of it all, the main concern in all of this monopolization is what’s to become of both apps’ catalogs (i.e., when we can cut the subscription to either party?) and, more importantly, whether we can still expect to see big banner Warner Bros. titles like The Batman Part II on the big screen as expected. In short, will the merger kill movie theaters as we know them? Given Netflix’s handling of phenomenons like KPop Demon Hunters and Stranger Things‘ theatrical finale doing gangbusters, the primary fear is Netflix will give its Warner Bros. movies a limited theatrical window à la Guillermo del Toro’s Frankenstein and Rian Johnson’s Wake Up Dead Man, creating artificial scarcity of the films and forcing folks to flock to streaming instead. However, Netflix co-CEO Ted Sarandos assured press and investors that Netflix would commit to Warner Bros.’ prior theatrical release agreements with the caveat that it’ll result in a 45-day window of exclusivity in theaters before heading to streaming, should the merger come to pass, according to the New York Times.
Which brings us to the news of today, where, during an earnings call, Cinemark CEO Sean Gamble basically went, “This you?” to Netflix, bringing up theaters’ apprehension about the streamer keeping its word, given Sarandos’ previous remarks about theaters years ago as “outmoded for most people,” according to Deadline. Although Gamble considered Netflix’s commitment to honoring a 45-day window for movies to be a “good target,” he thinks “there’s a lot still to clarify with what exactly is being referenced.”
“I think we’re all looking for much firmer assurances that are longstanding for not only a window, but levels of continued investment, and also sustained marketing, which is a critical component of this, too, versus just verbal comments and promises,” Gamble said. As Deadline notes, over the years, Cinemark has done tests with Netflix with short, nationwide runs with Army of the Dead, Glass Onion, and Wake Up Dead Man, but its findings have been inconclusive as to whether it’s benefited them beyond being a scenario where the films going straight to streaming makes consumers feel like they’re better off waiting it out and viewing the films for “free” via their subscriptions.
In short, Gamble wants Netflix to prove it loves theaters as much as it touts without theater exhibitors fearing they’ll be left on the short end of the stick if and when the Warner Bros. Netflix deal is finalized. The worry is that even with the record-breaking performances Netflix’s theatrical runs have had, should it change its mind and put its films on streaming, theaters like Cinemark will face financial ruin. But who knows, maybe Netflix will honor its word, having reiterated that it will twice now. We won’t know how this’ll all go down until the deal is finalized. Either way, monopolies suck and have a history of enshittification (looking at you, Microsoft), so it’ll be a coin toss to see what’s wrought by Netflix’s purchase of Warner Bros. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.
