Netflix Bid for Warner Bros Sparks Cinema Industry Backlash

Cinema operators have called for government scrutiny of Netflix’s proposed takeover of Warner Bros, warning the deal could significantly reduce the range of films available to audiences. With Netflix planning an 83 billion dollar acquisition of the studio renowned for the Harry Potter series, concerns are rising within the industry about the implications for both exhibitors and cinemagoers.

Phil Clapp, chief executive of the UK Cinema Association, addressed a letter to MPs on ministerial committees, highlighting that the takeover would pose a considerable threat to a sector still recovering from pandemic-related challenges. Clapp argued that Netflix’s approach to theatrical releases would result in fewer films shown to cinema audiences, possibly leading to job losses across the industry. He urged media minister Ian Murray and relevant parliamentary committees to investigate the proposed transaction thoroughly.

This sentiment was echoed by Tim Richards, chief executive of Vue Cinemas, who noted that Netflix’s historical ambivalence toward cinema releases undermines the credibility of the company’s assurances about its commitment to theatrical distribution. Richards stated that Netflix’s track record suggests little regard for the economic sustainability of physical cinemas and reduced options for fans of big screen experiences.

Netflix has publicly refuted these concerns, with co-chief executive Ted Sarandos claiming a strong commitment to cinema. He insisted that the streaming service is fully invested in retaining the value that Warner Bros brings to theatrical exhibition. Despite these claims, industry leaders remain sceptical, citing Netflix’s tendency to limit cinema runs to short windows, typically only to meet awards qualification criteria.

Ben Freedman, managing director of The Prince Charles Cinema in London, highlighted fears that timeless classics, particularly those by directors such as Stanley Kubrick, could become largely inaccessible outside Netflix’s platform. This, he argued, would contradict the intent of filmmakers who designed their works for enjoyment on the big screen, not exclusively for home viewing via streaming.

Wider industry bodies, such as the International Union of Cinemas, have also communicated their objections to European regulators, warning that this and similar studio mergers, including a 108 billion dollar bid by Paramount, threaten the diversity of films reaching cinemas. Clapp stated that losing one of Hollywood’s leading studios would diminish both the quantity and quality of films available, potentially mirroring the market contraction seen after Disney’s acquisition of 21st Century Fox.