Netflix co-CEO Ted Sarandos moved to calm industry concerns about the streaming giant’s commitment to theatrical distribution, stressing that a potential acquisition of Warner Bros.
Discovery (WBD) would not undermine the traditional cinema model. His comments come amid heightened scrutiny from theater owners, filmmakers and trade groups as Netflix seeks to expand its footprint in Hollywood.
Netflix won’t leave theaters, Ted Sarandos tells Hollywood
In a recent interview with The New York Times, Sarandos addressed growing anxiety about Netflix’s plans for theatrical films once the $82 billion acquisition of Warner Bros. is completed.
It offered a specific commitment that films from the acquired studio would continue to be released in theaters with a minimum 45-day theatrical run, which is in line with the long-standing industry standard.
“When this deal closes, we will own a theatrical distribution engine that is phenomenal and produces billions of dollars from theaters that we don’t want to risk. We will run this business pretty much as we do today, with 45-day windows,” he said.
Sarandos went further to assert Netflix’s intention to be a competitive theatrical player, saying, “If we’re going to be in the theater business, and we are, we’re a competitive people — we want to win opening weekend. I want to win the box office.”
This comment directly contradicts the notion that Netflix favors streaming at the expense of theater attendance.
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Why did Ted Sarandos make this comment?
Sarandos’ boost to Netflix’s theatrical commitment comes after years when the company’s approach to theaters was often interpreted as dismissive.
Historically, Netflix has released only a limited number of movies in theaters, usually short runs to qualify for awards or special events. Sarandos himself has described the traditional theatrical model as “outdated” in past remarks, suggesting that long periods of theatrical exclusivity do not fit with current consumer viewing habits.
Industry observers note that those earlier comments, along with Netflix’s streaming philosophy, contributed to unease among theater owners and distributors, who worried that the platform’s growing dominance could erode theater revenues and change audience expectations. The proposed acquisition of Warner Bros. — whose film library and upcoming slate includes major box office titles — has heightened those concerns.
Trade group Cinema United described the deal as a significant threat to the industry, warning that Netflix’s primary business model has traditionally not favored theatrical exhibitions and could lead to cinema closures and job losses if mismanaged. Prominent filmmakers also weighed in, with some skepticism about Netflix’s intentions and the future of the theatrical experience.
Golden Globe Award-winning actor Stellan Skarsgard also spoke about cinemas and their purpose. After accepting the award for Best Supporting Actor, the veteran artist said: “I hope you see it in the cinema because they are an extinct species now. In a cinema where the lights go out and you end up sharing a pulse with other people. That’s magic! Cinema should be seen in cinemas.”
