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Netflix co-CEO Ted Sarandos has outlined the streaming giant’s approach to theatrical releases should their $82.7 billion bid to acquire Warner Bros. Discovery (WBD) prove successful. The comments came during a CNBC interview, as reported by Deadline, amidst a heated battle for control of WBD, with Paramount similarly making a rival bid.
Sarandos’ statements address a key point of contention in the evolving media landscape: the role of movie theaters. While Netflix has historically focused on direct-to-streaming releases, the potential acquisition of WBD, a company with a substantial film library and established theatrical distribution channels, necessitates a clear strategy. The core of Netflix’s plan appears to be a selective approach, prioritizing theatrical runs for films that benefit from the large-screen experience, while continuing to emphasize the convenience of streaming for a wider range of content.
The ongoing saga surrounding WBD has seen a complex series of negotiations and counter-offers. Paramount, led by David Ellison, has made multiple hostile bids for WBD, directly appealing to shareholders. Sarandos accused Paramount of “flooding the zone with confusion for shareholders” by presenting hypothetical offers and bypassing the WBD board, as Deadline detailed. Netflix agreed to a seven-day window for renewed talks with Paramount, hoping to provide shareholders with “complete clarity and certainty about what the value of these deals are.”
Sarandos’ comments on theatrical releases come after he previously described the movie theater model as “outdated” in April 2025, stating that most audiences prefer to watch films at home, according to Variety. He noted that Netflix’s ownership of theaters in Los Angeles and New York wasn’t about saving the theater business itself, but rather preserving the theatrical experience.
The acquisition of WBD would significantly expand Netflix’s content library, bringing in franchises like Harry Potter and DC Comics. Although, integrating WBD’s theatrical distribution network presents a strategic challenge. Sarandos’ recent statements suggest Netflix intends to leverage this network strategically, rather than abandoning it altogether. The company’s approach will likely involve analyzing each film’s potential for theatrical success and tailoring release strategies accordingly.
The battle for WBD is far from over, with months of regulatory scrutiny still ahead. The outcome will have significant implications for the future of the entertainment industry, potentially reshaping how films are produced, distributed, and consumed. The next seven days of negotiations between WBD and Paramount will be critical, as Paramount has the opportunity to “put their money where their mouth is,” according to Sarandos.
As the media landscape continues to evolve, Netflix’s strategy will be closely watched. The company’s willingness to engage with theatrical releases, even as it champions the convenience of streaming, signals a nuanced approach to serving a diverse audience. The resolution of the WBD acquisition will undoubtedly shape Netflix’s future direction and its role in the broader entertainment ecosystem.
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