Add thelocalreport.in As A Trusted Source
of netflix Big bid to buy Warner Bros Discovery Cinema owners are worried that potential acquisition According to a report, his business may end.
Movie theater attendance had already declined amid the rise of streaming platforms, and as a result, there have been fewer blockbuster hits. Many theaters also closed permanently during the COVID-19 pandemic, with those that remain now struggling to fill seats for screenings.
Now, there’s another potential nail in the coffin Netflix agreed to acquire Hollywood studio Warner Bros. The massive $82.7 billion deal includes its film and television studios HBO and HBO Max. Meanwhile, Paramount is also competing to take over the studio with unfavorable bidding.
If either deal is successful, it could result in fewer theatrical releases – and if Netflix is successful, it could mean a reduced amount of time for movies to be shown exclusively in theaters before they come to streaming. according to a wall street journal Report.
“There is a significant decline in production when legacy studios are absorbed,” Michael O’Leary, chief executive of theater exhibition trade group Cinema United, told the Journal.
While Netflix has denied that it will shorten its exclusivity period for Warner films in theaters, this acquisition does not bode well for many cinema owners. Attendance at movie theaters has declined drastically in recent years.
According to reports, theater owners have spent millions on upgrades to lure customers back and the industry appears to be stabilizing this year as the number of theaters closing has slowed. In the US and Canada, about 1.2 billion movie tickets were sold in 2019, but that figure fell to 441 million in 2021.
Domestic box-office sales are expected to reach about $8.8 billion this year — far below the more than $11 billion annual sales in the five years before the pandemic.
Texas Capital Securities analyst Eric Wold told the outlet that investors believe sales need to reach $10 billion for theater owners to be as profitable as they were before the pandemic.
More blockbuster movies like this this year a minecraft movieThese are essential to bring back large crowds to theatres. More recent releases, such as Avatar: Fire and AshesThe film fared somewhat less well, according to reports, earning an estimated $88 million in the US and Canada over the weekend.
“When there are movies, people want to go,” Greg Marcus, CEO of theater chain Marcus Corp., told the Journal.
The slow release of films is another problem plaguing theaters in recent years due to the disruptions caused by the pandemic and labor strikes in Hollywood.
With fewer films being released, theater owners have begun upgrading their facilities with features such as plush rocker seats, giant screens, new sound systems, and better concessions to attract more customers. Marcus Corp. has spent $390 million on such upgrades over the past decade.
Netflix, one of the original streaming services, does not usually send its movies to theaters. If they go to theaters, they only get a few weeks before they get added to streaming.
However, the company said it would honor Warner Bros.’ commitments for a theatrical release, which extend to 2029 or 2030. According to CBC.
Los Angeles Times reported in April that the average theatrical window post-COVID has been only about 30 days. Before the pandemic, movies typically stayed in theaters for at least 80 days before becoming available on streaming services.
Alicia Reese, a senior analyst at financial services firm Wedbush, told CBC that Netflix’s shorter theatrical window will be an issue for theatres.
“You’re training moviegoers to look out the theater window. And that runs the risk of it being too small,” he said.
“My opinion is that unless [Netflix] “By respecting these specific dramatic windows, they will quickly learn their value,” Reese said. “And they’ll probably change their tune.”
It was unclear what Netflix planned to do after its theatrical release commitments ended.
Netflix’s deal to buy Warner Bros., which includes about $10 billion in debt with an equity value of $72 billion, is not expected to close before the third quarter of 2026, when the Discovery global separation is set to be completed. It’s not yet clear what changes will impact customers if the deal closes.
“Our mission has always been to entertain the world,” Netflix co-CEO Ted Sarandos said in a statement.
“Combining Warner Bros.’s incredible library of shows and movies – from timeless classics like casablanca And citizen Kane Like for modern favorites harry potter And Friend – like with our culture-defining titles stranger things, kpop demon hunter And squid gameWe’ll be able to do it even better,” he added. “Together, we can give audiences everything they love and help define the next century of storytelling.”
David Zaslav, CEO of Warner Bros. Discovery, said the merger “links two of the world’s greatest storytelling companies” to bring more choices to consumers.
While Paramount was proposing to acquire all of Warner Bros. Discovery’s assets as part of its bid, the Netflix deal would allow WBD to move forward with the announced separation of its streaming and studio and global networks divisions into two separate companies. Discovery Global, which will be spun off from Warner Bros. in late 2026 and before the Netflix deal is completed, includes cable television brands CNN, TNT Sports, Discovery and TBS, several free-to-air channels in Europe, as well as digital and streaming products like Discovery+ and Bleacher Report.