One of the big questions hanging over Netflix’s bid to acquire Warner Bros. has been whether the streamer would hold fast to its long-standing position against beginning a release of its movies with an extended, exclusive run in theatres.
Under the leadership of its Co-CEO Ted Sarandos, Netflix has resisted the industry’s traditional model of theatrical releasing, with Sarandos claiming that theatrical releasing is an “outmoded” business model. This stance has frustrated many in Hollywood, Washington, and around the country, having some politicians already sounding the alarm on the potential negative impact of a Netflix takeover of Warner Bros.
In an attempt to diffuse this concern, Sarandos told Warner Bros. managers this week that Netflix would continue to release Warner Bros. movies in theatres if his company were successful in acquiring the Hollywood studio. Specifically, Sarandos said that Netflix would honor the terms of all contracts the studio had reached with talent, including provisions to allow a movie to have a full 45-day theatrical window when released. Going forward, it remains to be seen whether Netflix will alter the company’s distribution strategy, or is only saying what it feels it needs to to have its proposed takeover approved.
