Netflix’s proposed $83 billion acquisition of Warner Bros. has sent shockwaves through Hollywood, with theater owners and industry insiders raising alarm bells about the streaming giant’s commitment to theatrical releases.
But co-CEO Ted Sarandos wants everyone to take a breath.
In a recent interview with the New York Times, he made his intentions crystal clear: Netflix isn’t planning to kill the theatrical movie business.
In fact, he’s doubling down on it.
Netflix Commits to 45-Day Theatrical Windows
Sarandos didn’t mince words when addressing concerns about Warner Bros.’ future under Netflix ownership.
When this deal closes, we will own a theatrical distribution engine that is phenomenal and produces billions of dollars of theatrical revenue that we don’t want to put at risk. We will run that business largely like it is today, with 45-day windows.
That’s a hard commitment from someone whose company has historically bypassed theaters altogether. Sarandos emphasized Netflix’s competitive nature, saying he wants to “win opening weekend” and “win box office.”
This represents a dramatic shift in Netflix’s approach to film distribution, acknowledging that Warner Bros.’ theatrical business generates substantial revenue worth preserving.
Why Netflix Changed Its Mind About Theaters
Sarandos admitted that Netflix executives were wrong about several key assumptions regarding Warner Bros.’ theatrical operations.
The general economics of the theatrical business were more positive than we had seen and we had modeled for ourselves. It’s a healthy, profitable business for them.
This revelation suggests Netflix’s due diligence uncovered stronger theatrical economics than anticipated. Rather than immediately funneling everything to streaming, the company recognizes value in maintaining established distribution channels.
Sarandos also pointed to Netflix’s own successful theatrical experiments, including special event releases like the “Stranger Things 5” finale on New Year’s Eve and limited runs of “KPop Demon Hunters.”
You give people a reason to leave the house, they will gladly leave the house.
Industry Backlash and Congressional Warnings
Not everyone is buying Sarandos’ reassurances.
Cinema United, representing theater owners, warned Congress last week that Netflix’s acquisition could result in fewer movies, widespread job losses, and theater closures across America. Their concerns aren’t entirely unfounded given Netflix’s historical resistance to theatrical releases.
Sarandos characterized the backlash as coming from “loud voices, but not necessarily a lot of them.” He acknowledged that much of the criticism stemmed from Netflix’s silence on theatrical intentions before making public statements.
A lot of it was folks who questioned, rightfully so, our intent with theatrical because we hadn’t said anything about it. A lot of it was the emotions around that more than anything else.
The “Outmoded” Comment That Won’t Die
Sarandos has spent considerable energy walking back comments he made at the Time100 Summit in April 2025, where he called moviegoing “an outmoded idea.”
Those words haunted him, reinforcing perceptions that Netflix fundamentally opposes theatrical exhibition.
In his Times interview, Sarandos attempted damage control, insisting his statement was taken out of context.
You have to listen to that quote again. I said ‘outmoded for some.’ I mean, like the town that ‘Sinners’ is supposed to be set in does not have a movie theater there. For those folks, it’s certainly outmoded.
He contrasted rural areas without theater access to urban centers like Manhattan, where his daughter visits multiplexes twice weekly. The clarification reveals Netflix’s nuanced view: theatrical works wonderfully for some demographics while streaming serves others better.
What About Future Release Windows?
Here’s where Sarandos’ promises get murky.
While committing to 45-day windows now, he previously told analysts that release windows will eventually shrink to become “much more consumer-friendly.” That statement keeps theater owners up at night, suggesting the 45-day commitment may be temporary.
Shorter windows mean less theatrical revenue as audiences wait for streaming availability. Major studios have experimented with compressed windows, often with disappointing box office results.
Two Buyers, One Studio
Complicating matters further, David Ellison’s Paramount Skydance is mounting a hostile takeover bid for Warner Bros. Discovery, threatening to initiate a proxy war to install board members sympathetic to its offer.
Sarandos remained confident about Netflix’s position, noting that Hollywood critics would prefer no deal happens at all—but that’s not realistic.
What people would like to see is no deal. But that’s not possible. There are two outcomes of this deal, and we have a signed deal done.
Netflix’s Theatrical Evolution
Sarandos emphasized that Netflix never hated theatrical exhibition—it simply focused resources elsewhere during streaming’s explosive growth phase.
We weren’t in that business not because we hated it. We weren’t in that business because our [streaming] business was doing so well.
Acquiring Warner Bros. represents Netflix acknowledging theatrical as a complementary revenue stream rather than competition. Success at the box office generates buzz, drives cultural conversation, and ultimately benefits streaming viewership.
The entertainment landscape is witnessing a potential paradigm shift. If Netflix successfully integrates Warner Bros.’ theatrical operations while maintaining streaming dominance, it could redefine how major studios approach distribution strategies.
Whether Sarandos’ promises materialize or prove to be carefully worded PR damage control remains to be seen. Theater owners have every reason to remain skeptical given Netflix’s track record.
But for now, the message is clear: Netflix wants both the theatrical billions and streaming supremacy.