Theatre vs OTT: Netflix Ends Debate on WBD Deal

Netflix co-CEO Ted Sarandos has stated that Warner Bros. films will continue to release in theatres for at least 45 days if the proposed deal with Warner Bros. Discovery is finalised. The statement aims to reassure exhibitors concerned about direct to streaming releases.

The clarification is meant to ease fears that Netflix would bypass cinemas and push major films straight to its platform. Theatre owners have been worried about shrinking windows affecting footfall and long term sustainability.

In an interview with The New York Times, Ted Sarandos said Netflix intends to operate Warner Bros.’ film business much like it functions today. He described the theatrical model as strong and profitable. He also stressed Netflix’s interest in competing seriously at the box office.

Ted Sarandos added that a closer review of Warner Bros.’ financial data changed Netflix’s perception of the theatre business. The company found it healthier than expected. As a result, shortening release windows further could risk valuable theatrical revenue.

He also clarified that Netflix is not opposed to cinemas. The earlier focus on streaming came from rapid growth in that segment. The proposed deal has drawn criticism from theatre groups over fears of fewer releases and job losses.

According to Ted Sarandos, much of the backlash is driven by doubts around Netflix’s intentions. Maintaining a clear 45 day theatrical window is seen as a positive move. It signals that cinemas remain essential before films transition to streaming.