A cinema trade organization has issued a stark warning against the deal recently made between Network and Warner Bros. Discovery. According to The Independent Cinema Alliance (ICA), the deal poses a major threat to theatrical releases and consumer choice.
Key Takeaways
- The Independent Cinema Alliance warns Netflix’s proposed acquisition of Warner Bros. could significantly reduce the number of films released in theatres, prioritizing streaming over cinema.
- The ICA warns the deal could be especially harmful to independent cinemas and their communities, which depend on a steady flow of wide-release titles and fair release windows.
- The ICA is urging the Justice Department to scrutinize the deal and ensure protection of theatrical output and consumer choice.
Last week, Netflix and Warner Bros. Discovery announced a deal that will see Netflix acquire Warner Bros, one of the two companies due to emerge following the separation of Warner Bros. Discovery’s streaming and studios businesses.
Following that announcement, the ICA has issued its warning, stating Netflix’s ownership of Warner Bros would essential further throttle theatrical distribution, resulting in fewer films making it to theatres.
“Netflix has made its position clear for years: it is built to serve consumers who watch content on personal devices, not to sustain a robust theatrical ecosystem for families and individuals who want to see movies in theatres,” said Frank Rash, Executive Director, ICA.
The ICA pointed to Disney’s 2019 acquisition of 21st Century Fox as “a cautionary tale.” According to the trade organization, the number of Disney and affiliated brand theatrical releases dropped by 40% since the deal was first announced in 2017.
The ICA also argues the deal would particularly impact independent theatres and the communities they serve.
“Netflix’s proposed acquisition of Warner Bros has significant implications for theatrical exhibition—especially for the communities that independent theatres serve, which rely on a consistent flow of wide-release titles and fair, predictable release windows,” added Rash.
With these points in mind, the ICA is now urging the Justice Department to “carefully evaluate” the proposed acquisition.
Regulatory scrutiny isn’t the only hurdle Netflix faces on route to completing this deal.
Earlier this week Paramount raised its own consumer choice concerns, while publicly making its own offer to outright buy Warner Bros. Discovery in its entirety.
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