Industry and Cinema Groups Raise Alarms Over Netflix's $83 Billion Warner Bros Acquisition

Netflix's announcement of its acquisition of Warner Bros Discovery for approximately $83 billion has sparked significant concerns from within the cinema industry and the broader entertainment sector. The merger, which eclipses Disney's 2019 Fox purchase, aims to combine Warner Bros' extensive library with Netflix's popular global content like 'Stranger Things' and 'Squid Game.' Netflix co-CEOs Ted Sarandos and Greg Peters have highlighted ambitions to enhance global entertainment offerings and reach a broader audience. Warner Bros CEO David Zaslav expressed enthusiasm about joining forces to delight worldwide audiences.

However, this major deal has alarmed several stakeholders. Cinema United, representing over 30,000 U.S. theaters and 26,000 internationally, has vocally opposed the acquisition, warning that Netflix's business model is not built to support theatrical film releases. Michael O’Leary, CEO of Cinema United, warned of a potential 25% annual drop in U.S. box office revenues if Warner Bros films reduce their theatrical presence. He emphasized that vibrant theatrical releases contribute crucially to local economies and jobs, with cinema visits generating $1.50 in spending at nearby businesses for every dollar spent at the theater.

Further, there are fears that the merged entity could accelerate monopolistic dominance in film production and distribution, negatively impacting independent studios and film diversity. The New York Post reports that even the White House has expressed concern about Netflix’s growing market dominance and its implications for the fragile entertainment industry.

Cinema United urged regulators to carefully scrutinize the deal's broader cultural and economic consequences, underscoring that a commitment to cinema requires strong theater-exclusive titles and marketing support — areas where Netflix’s model currently falls short.

As the entertainment industry watches closely, the acquisition's full impact on theatrical cinema, market competition, and content diversity remains to be seen, with many advocating for regulatory oversight to safeguard the future of cinema and independent productions.