Netflix Says It Will Keep Warner Bros. Movies in Theaters if the Buyout Happens

Netflix is looking at buying Warner Bros. Discovery, and people who know about the talks say the streaming giant has told Warner Bros. leaders that it plans to keep the studio’s movies in theaters if the deal goes through.

These people, who spoke on condition of anonymity because the discussions are private, said Netflix understands that Warner Bros. already has contracts that require theatrical releases and plans to follow those rules.

This is a noticeable shift for Netflix. The company has built its business by focusing almost fully on streaming and has rarely given its own films a traditional run in theaters. But the chance to own Warner Bros.’ long-running movie catalog, combined with the obligations attached to it, has pushed Netflix to rethink its position.

Warner Bros. has been open to selling the company since last month, after receiving interest from several major buyers. Sources say that Netflix, Comcast’s NBCUniversal, and Paramount Skydance have all shown interest in buying the studio and its streaming assets. All formal offers must be submitted by Thursday.

If Netflix wins, this would be the biggest purchase in the company’s history, and Netflix executives have already met with Warner Bros. management to pitch their vision.

Inside Hollywood, some people worry about the deal. Losing another independent studio could mean fewer films made for theaters, something many in the business already feel is shrinking. Netflix has only put a small number of its films in theaters, usually for award qualification or to keep talent happy.

The company’s co-CEO Ted Sarandos has previously said “theaters are a declining business,” and he has often stressed that Netflix’s main job is to serve its streaming customers.

Still, the company appears ready to adjust if it means taking over a major studio and its film library.

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