"When Sonya Yokota William heard that Netflix was poised to buy Warner Bros. Discovery's TV and film studio one of Hollywood's oldest and most prized assets she couldn't help but worry that the future of the moviegoing experience itself was at risk. Assurances from Netflix that it would maintain the studio's current operations, including theatrical releases for films, has done little to allay industry concerns about the streaming giant's attitude toward theatrical releases."
"Though Netflix has agreed to buy Warner Bros. Discovery's TV and film studios and streaming division for $72 billion US, the deal is still subject to regulatory approvals. Meanwhile, Paramount Skydance has launched a hostile takeover bid worth $108.4 billion US. Industry analysts say that while people do still want to see movies in theatres, the cost of doing so has increased and customers need a more compelling reason to go."
"'Unprecedented threat' Netflix's takeover bid poses an unprecedented threat to the global exhibition business," said Michael O'Leary, president and CEO of Cinema United, a trade organization that represents more than 31,000 movie screens in the U.S. and Canada. Netflix's business model does not support showing movies in theatres, he said. The deal would risk removing 25 per cent of the annual domestic box office if films that are "traditionally given a robust theatrical release by Warner Bros., disappear from theatres," he said."
Netflix has agreed to buy Warner Bros. Discovery's TV and film studios and streaming division for $72 billion US, a deal that remains subject to regulatory approvals. Paramount Skydance has launched a competing hostile takeover bid worth $108.4 billion US. Exhibitors and analysts express concern that Netflix's prior reluctance to prioritize theatrical releases could endanger the cinema business. The takeover could remove a sizable share of studio-originated theatrical content and threaten roughly 25 percent of the domestic box office. Domestic box office was estimated at $8.7 billion in 2024, down from $9 billion in 2023, increasing worries about audience costs and demand.
Read at www.cbc.ca
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