Netflix co-CEO pledges ‘traditional’ movie releases from WBD
Netflix co-CEO pledges ‘traditional’ movie releases from WBD
If Netflix completes its purchase of Warner Bros. Discovery, it will follow the well-worn release pattern established by the company, Ted Sarandos says.
Any concern about the status quo of Warner Bros. Discovery’s movie releases if the company is purchased by Netflix is overblown, according to Netflix co-CEO Ted Sarandos. During a recent podcast appearance, Sarandos again committed Netflix not only to a minimum 45-day theatrical window for Warner releases, but also pledged that it would continue to send those movies to premium video-on-demand (PVOD) platforms for digital rental or purchase before they appear on HBO Max.
Key Details:
- Premium experience: Sarandos committed Netflix to allowing WB films to continue streaming on PVOD platforms before HBO Max.
- Same as it ever was: WB film releases will feel “traditional” under Netflix’s stewardship, according to Sarandos.
- Waiting game: Netflix has granted WBD permission to re-engage with Paramount in acquisition talks.
Under the current structure, Warner Bros. films get a sometimes-lengthy release on PVOD services like Prime Video before they make their way to HBO Max. This allows WBD to collect an extra pool of revenue from its movies before they stream on its flagship service.
Appearing on the latest episode of “The Town with Matthew Belloni,” Netflix co-CEO said that his company would not send movies directly from theaters to HBO Max if it completes its acquisition of WBD. Instead, they would continue to be sent to PVOD platforms for an unspecified length of time before streaming with a subscription.
“The core thing is that it will feel traditional in how long it is in theaters and how long it takes to get to HBO Max,” Sarandos said.
It would seem a bit shortsighted for Netflix not to take advantage of PVOD platforms if it does finalize its takeover of WBD. It’s a revenue stream that the company doesn’t currently have, and premium rentals can have great appeal to families who don’t want to pay movie theater prices to see a new release.
Sarandos has made multiple commitments to maintaining a theatrical release structure at WBD if Netflix can buy it — including in testimony given under oath to the Senate Judiciary Committee. If it mothballs theatrical releases, as Sarandos puts it, Netflix won’t be getting the full value of its purchase.
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