Ted Sarandos says Netflix will still support WB theater release – even if Windows will evolve
Netflix co-CEO Ted Sarandos insisted his streamer would always support Warner Bros. theater production once the deal to purchase WBD for $82.7 billion is finalized.
“It’s not like we have this opposition to theatrical films. My reluctance is mainly about the long exclusive windows, which we don’t really think are that consumer-friendly,” Sarandos said on an investor call Friday morning. “But when we talk about keeping HBO going, largely as it is, that also includes its film production deal with Warner Bros., which includes a life cycle that begins in the movie theater, which we’re going to continue to support.”
“I wouldn’t view this as a change in approach for Netflix films or for Warner films. I think over time the showcases will evolve to be much more user-friendly, to be able to meet audiences where they’re quicker,” he continued. “I would say right now you should count on anything that is scheduled to go to theaters through Warner Bros. will continue to go to theaters through Warner Bros. and the Netflix films will follow the same progress as them, which is to say some of them have a short theatrical run beforehand, but our main goal is to bring first run films to our members, because that’s what they’re looking for.”
Sarandos’ update came the morning after Warner Bros. Discovery and Netflix have agreed to move forward with their exclusive deal negotiations at $30 per share for the studio and streaming assets. Both boards approved the deal, which includes a $5 billion breakup fee to match conditions Paramount added to its offer, and they expect regulatory approval to be obtained in 12 to 18 months.
Netflix co-CEO Greg Peters further told Wall Street analysts and the press on Friday morning’s call that their company remains excited about its place in Hollywood now that it’s buying a former studio. He also stressed that they would not repeat the mistakes of the AOL Time Warner merger.
“A lot of these failures that we’ve seen historically are because the company that was doing the acquisition didn’t understand the entertainment business. They didn’t really understand what they were buying,” he said. “We understand these assets that we’re buying. The key things at Warner Bros. are the key businesses that we operate in and we understand. Quite often the acquiring company was a traditional, non-growth company that was looking for some sort of lifeline. That doesn’t apply to us. We have a healthy, growing business that we’re extremely excited about.”
More to come…
