Netflix Puts Cinemas on Notice: Ted Sarandos Outlines the Future of Warner Bros Theatrical Releases

Well, the rumor mill finally cashed a check: Netflix is set to buy Warner Bros for a jaw-dropping $82.7 billion. Yes, that includes the studio’s film and TV operations. The headline is huge. The fine print is what every theater owner is sweating.

The deal in plain English

• Price tag: $82.7 billion for Warner Bros, covering both film and television divisions.
• Where this came from: After months of speculation, Netflix stepped up as the bidder (as first reported by Deadline).
• Netflix’s stance: Co-CEO Ted Sarandos says WB movies will still play in theaters, but he is not a fan of long exclusive theatrical windows.
• Right now vs later: Do not expect Netflix to rip up WB’s big-screen playbook overnight. Sarandos hinted the change would come over time, with shorter gaps between theatrical and streaming.
• Why that matters: Warner Bros just came off a strong 2025 at the box office, despite some stumbles, most notably Bong Joon Ho’s 'Mickey 17' and Paul Thomas Anderson’s 'One Battle After Another.'
• The bigger picture: WB accounts for roughly 25% of the annual box office. Theaters still have not climbed back to pre-COVID levels, so shrinking theatrical windows (or fewer theatrical releases) would sting.
• Industry pushback: Cinema United President and CEO Michael O'Leary argues Netflix’s model does not support theatrical and is urging regulators to scrutinize the deal’s impact on consumers, theaters, and the industry at large.

What Sarandos actually said

It is not like we have this opposition to movies into theaters. My pushback has been mostly in the fact of the long exclusive windows, which we do not really think are that consumer-friendly... I would not look at this as a change in approach for Netflix movies or for Warner movies. I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker.

That was on a Friday investor call. Translation: WB movies will continue to hit theaters, just do not expect them to sit there as long before they hit Netflix. The pace will speed up. Maybe not tomorrow, but that is where this is headed.

So what changes for WB releases?

In the immediate term, little. Expect the upcoming slate to still open theatrically. The difference comes later: those traditional, longer theatrical windows that WB has largely held to could compress under Netflix ownership. If you follow the business side of Hollywood, that’s the lever to watch.

The box office fallout fear

Warner Bros is a pillar for theaters, driving about a quarter of the yearly box office. If its movies spend less time exclusively on the big screen, that is a direct hit to exhibitors, from massive chains to single-screen houses in small towns across the U.S. and beyond. O'Leary has been blunt about it: he says Netflix’s model, as stated, runs counter to theatrical, and he is calling on regulators to take a hard look at the merger’s knock-on effects for audiences, theaters, and the wider entertainment ecosystem.

Bottom line: WB stays theatrical for now, but the window likely shrinks as Netflix gets comfortable. Whether that trade-off helps consumers without kneecapping theaters is the question everyone’s about to argue over.

Where are you on this? Excited about faster streaming drops, or worried about the big-screen experience getting squeezed?