Netflix’s $82.7 Billion Warner Bros. Takeover Sparks Major Cinema Industry Backlash

Netflix has announced a plan to buy Warner Bros. for $82.7 billion. The massive deal was made official on Friday. It immediately drew fierce opposition from European cinema owners.

The International Union of Cinemas (UNIC) issued a strong statement against the move. The trade body warned the acquisition poses a severe risk to the future of movie theaters. They argue it threatens the flow of films to the big screen.

Cinema Group Warns of Fewer Films and Theater Closures

The UNIC represents exhibitors across 39 European territories. This covers 43,500 screens in total. Their statement called the deal a “double risk” for the industry.

They fear the loss of a major Hollywood studio will mean fewer films are produced. Furthermore, they worry even fewer of those movies will get a proper theatrical release. According to Reuters, this could lead to significant cinema closures and job losses.

UNIC CEO Laura Houlgatte was blunt in her assessment. She stated Netflix has shown repeatedly it does not believe in the cinema business model. The streaming giant typically releases only a handful of titles in theaters, often just to qualify for awards.

Netflix Promises Theatrical Releases Amid Regulatory Scrutiny

In its announcement, Netflix said it expects to maintain Warner Bros. operations. This includes continuing theatrical releases for films. Specific details on release windows, however, were not provided.

Netflix framed the deal as a creative opportunity. It said filmmakers would get access to Warner’s famous franchises and Netflix’s global reach. The goal is to tell new stories to a wider audience.

Regulators must now scrutinize the proposed merger. UNIC President Phil Clapp urged them to consider the consequences for the public. He warned any reduction in film diversity would damage Europe’s cultural landscape.

The proposed Netflix Warner Bros. acquisition now faces a critical new hurdle beyond regulators: united opposition from the cinema exhibition industry itself. The deal’s future may hinge on addressing these deep-seated fears about the theatrical experience.

Thought you’d like to know

Q1: Why are cinema owners opposed to the Netflix-Warner deal?

Cinema owners fear the deal will reduce the number of films made. They also worry Netflix will not give new Warner Bros. movies a meaningful exclusive run in theaters, harming their business model.

Q2: What did Netflix say about theatrical releases?

Netflix stated it expects to maintain Warner Bros. operations, including theatrical releases. The company did not provide specific details on how long films would play in cinemas before moving to streaming.

Q3: How large is the UNIC cinema group?

The UNIC represents cinema exhibitors across 39 European territories. Its members operate a total of 43,500 movie screens throughout the region.

Q4: What is the main financial value of this deal?

Netflix has proposed acquiring Warner Bros. for a staggering $82.7 billion. This would be one of the largest media mergers in history.

Q5: How is this deal different from past media mergers?

This merger uniquely pairs a dominant global streaming platform with a legacy Hollywood film studio. Critics say it directly pits the streaming model against the traditional theatrical window, creating a fundamental conflict.