In the flurry of headlines stemming from the prospective sale of Warner Bros. to Netflix, James Gunn's DCU received some positive news. Following a lengthy bidding period, Warner Bros. has officially entered into an exclusive agreement to sell to Netflix. If the deal passes regulatory checks, it would mean the streamer would acquire Warner's studio and streaming assets at a figure in the ballpark of $82 billion.
Netflix winning the battle for WB has fans worried, as the company has been very public in its distaste for the theatrical part of the business, leading some to believe it could spell the end of big-screen releases for Warner Bros. titles, such as James Gunn's newly minted DCU.
That may not be the case, however, at least for now. In the wake of news of the pending Netflix Warner Bros. sale, it has been reported that Warner's theatrical releases (including the DCU) have been secured at least through 2029.
According to analysts at Wedbush Securities (via Barron's), Warner's prospective new owners would have to honor any exhibitor deals negotiated prior to the sale being finalized—this includes an agreement with IMAX to release in the format up to 2029.
So, contractually, if the Netflix sale is pushed through, James Gunn's DC Studios releases would have to come to the silver screen for at least the next four years, but beyond that remains a massive question.
This aligns with comments from the Netflix team, who reportedly suggested during the bidding process that it would maintain the theatrical standard set by Warner Bros. However, that has not stopped fans from remaining skeptical of the streaming-first company.
Speaking on a potential Netflix-Warner Bros. deal, Michael O'Leary, CEO of the exhibition trade association Cinema United, told CNBC that he believes the sale to be "an unprecedented threat to the global exhibition business," adding that "Netflix’s stated business model does not support theatrical exhibition."
Netflix's acquisition of Warner Bros. assets is still pending government approval.
Should Fans Be Worried About the Netflix-Warner Bros. Sale
Netflix's acquisition of Warner Bros. is a potentially industry-shaking deal, and it has fans worried (especially those who love going to the movie theater). Netflix has not exactly been the most theatrically inclined company in Hollywood.
Netflix is, at its heart, a streaming-first business. Sure, it puts some of its movies on the big screen (examples from this year include Wake Up Dead Man, Jay Kelly, and K-Pop Demon Hunters), but those releases are few and far between and are by no means a significant part of its business.
The streamer has stated that it is ready and willing to maintain the theatrical standard set by Warner, bringing its movies to theater screens if the deal were to be finalized. However, some have argued this sounds awfully like something someone would say who was hoping to get a massive acquisition through the regulatory process.
Just because they say it now does not mean they will still be saying it five or ten years from now.
Netflix may be promising that the DCU and Warner's other properties will continue to come to theaters for now, as they are legally obligated to do so. Warner has signed specific exhibitor deals, including the IMAX one, and Netflix would have to honor them if the sale were to go through.
So, fans will have to wait and see what this means for the future of Warner's theatrical business, not in the next two or three years, but rather much further down the line.
