Hollywood’s oldest film studio Warner Bros. is going to be sold. Netflix is going to buy it. Netflix said it has signed a deal worth $72 billion with Warner Bros. In this deal, Netflix will get the streaming business along with the studio of Warner Bros. However, this deal will take time to complete. The deal is expected to be completed by the third quarter of 2026.
The world is keeping an eye on this deal between Netflix and Warner Brothers, because it will change the experience of films to a great extent.
Multiplex Association of India (MAI) has also expressed concern regarding this deal. The association says that this deal is a big threat to India’s cinema theater and film economy.
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What is going to happen?
A deal has been made between Netflix and Warner Bros. With this, Warner Bros.’s studio and streaming business will be given to Netflix. Warner Bros. is a 102 year old studio.
When will the deal be completed? By third quarter of 2026. It will take so much time because Warner Bros. will make its Discovery Global a new company and only after that the deal is expected to be completed.
This is a cash and stock deal. That means some amount of the deal will be given in cash and some stock will be given. This entire deal is worth 72 billion dollars. However, it is being said that including loan etc. this deal will reach 82.7 billion dollars.
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What is Netflix’s plan?
Netflix already owns two major movie theaters. This includes the Paris Theater in New York and the Egyptian Theater in Los Angeles. Now Netflix will also have the ownership rights of Warner Bros. Warner Bros. also owns the streaming business of HBO. This will also come to Netflix.
Netflix co-CEO Ted Sarandos said that Warner Bros. films will be released in theaters. However, he also said that it is not right to keep them in the theater for too long. This means that films can be released on OTT just a few days after their theatrical release.
Now is the era of OTT and most of the people are preferring to watch movies on OTT instead of theatre. Earlier the film used to come on OTT 90 days after its theatrical release. Then it started coming on OTT only after 45 days. And now every film has different timings. Some films will be released on OTT in a few weeks.
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What does this mean for movie theaters?
People associated with the film industry all over the world are expressing concern about this deal. Michael O’Leary, president and CEO of Cinema United, said this poses a threat that has never happened before.
He said that the specifics of this deal should be looked at carefully and its adverse impact on the entertainment industry should be understood. He said that the theater business has not fully recovered after Covid. He told that earlier the annual box office collection was 11 billion dollars. After Covid, a business of $9 billion was done in 2023 alone, that too because Warner Bros’ ‘Barbie’ did good business.
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Is there a threat to India also?
Multiplex Association of India (MAI) has also expressed concern regarding this proposed deal. MAI President Kamal Gyanchandani said that Netflix does not believe in the cinema-first model. If this deal happens then the danger will increase. Firstly, the high quality content for theaters will reduce and secondly, the theatrical window will either become smaller or will end.
He said that this deal will not only affect the box office business but will also reduce the choice of the audience. At the same time, the ecosystem of film production, distribution and exhibition in India will become weak. He said that cinema in India is much more than entertainment. This supports the livelihood of millions of people.
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