Netflix had started warming up to theatrical releases, but Warner Bros will instead be acquired by Paramount, which promises to release 30 theatrical movies per year – 15 from each studio.
The commitments came during a presentation to investors after confirmation that Paramount will acquire Warner Bros and HBO, pending approval from competition authorities.
Netflix says it has already received $2.8 billion from Paramount as a condition for withdrawing from the signed agreement. Paramount and Warner Bros Discovery have therefore entered into a new deal valued at nearly $111 billion.
At least 30 theatrical releases yearly
If Paramount delivers on its promise, the company will debut at least 30 films in theaters annually – 15 from Paramount and 15 from Warner Bros.
- "We will invest in expanding the creative engines at the core of both WBD and Paramount. We will maintain both studios while prioritizing the attraction and retention of world-class creative talent, strengthening our ability to deliver a broad pipeline of high-quality content, including 15 theatrical feature films per year per studio, for our combined platforms and third-party distribution partners," Paramount writes.
That would mark an increase from today. Since 2022, Paramount has released an average of 8-9 theatrical movies per year, while Warner Bros has released 10-12. These figures cover major titles, meaning the total would be somewhat higher if smaller titles from partner studios were included.
Analyst David A. Gross has called the promise of 30 major theatrical releases "extremely unrealistic" in comments to Variety.
Slide from Paramount's investor presentation this weekMajor movie franchises
Once Paramount and Warner Bros come under the same roof, the merged company will control many of the biggest movie franchises.
Paramount pointed to franchises such as Harry Potter, Mission Impossible, The Lord of the Rings, Game of Thrones, Teenage Mutant Ninja Turtles, Transformers, Star Trek and SpongeBob SquarePants. In addition, the entire DC Universe will be part of the portfolio.
At least 45 days of exclusivity
Paramount also promises that its major films will play at least 45 days in theaters. Today, Paramount movies typically get 30-70 days of exclusivity in cinemas.
- "Every film will receive a full theatrical release, with a minimum 45-day window globally before becoming available on paid video-on-demand (VOD), with the intention of 60-90 days or more to maximize the audience for our most successful releases," Paramount said.
In other words, Paramount will maintain release windows so that a movie gets at least 45 days in theaters, followed by up to 90 days as a digital purchase/rental (VOD), before it shows up on a subscription streaming service such as HBO Max or Paramount+.
Paramount has not commented on the release window for physical media.
This strategy would stand in contrast to Netflix, which releases movies directly on streaming.
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Industry raises concerns
The commitments may sound like music to the ears of a struggling cinema industry, but industry associations in several countries are raising concerns.
- "We have been clear from the outset about our concerns around consolidation, and nothing that has occurred within the past 36 hours has changed that. Studio consolidation historically leads to fewer movies being made, and at this juncture, there is no reason to believe the outcome here will be any different. We continue to urge regulators to heed the lessons of the past," said Michael O'Leary, president of the industry association Cinema United (formerly NATO), in a statement.
