Netflix is reportedly just days away from buying Harry Potter, DC Universe, and HBO Max owner Warner Bros., after entering exclusive deal talks for the company’s studio and streaming assets.
TheWrap said Netflix offered $30 a share as part of the deal, which includes a $5 billion break-up fee. Despite Paramount being Donald Trump’s pick for the acquisition, it seems Warner Bros. has gone with the gargantuan streamer instead. Neither party has commented.
Assuming the deal goes through, Netflix would own everything from rival streamer HBO Max to Warner Bros.’ video games, and spark questions around the future of the DC Universe, its co-CEOs James Gunn and Peter Safran, and Warner Bros.’ commitment to theatrical releases for its movies.
Netflix remains steadfast in its streamer-first strategy, which means theatrical releases for its films are few and far between. Guillermo del Toro’s latest, Frankenstein, had a short theatrical run nationwide in October ahead of its November 7 premiere on the streaming platform, and global phenomenon KPop Demon Hunters hit theaters after its explosive launch on Netflix. The final episode of Stranger Things Season 5 will drop in theaters simultaneously with its Netflix premiere.
Netflix has indicated it won’t change its long-standing view on theaters versus streaming. “There’s no change in the strategy,” CEO Ted Sarandos explained of the company’s policy on theatrical distribution during a recent earnings conference. “Our strategy is to give our members exclusive first-run movies on Netflix.” In fact, Sarandos went on to assert that KPop Demon Hunters only became a sensation “because it was released on Netflix first.”
Avatar director James Cameron recently warned against Netflix buying Warner Bros., expressing concern about the fate of theatrical releases if such a deal were to go through. While appearing on the The Town podcast, Cameron said: “Netflix would be a disaster. Sorry, Ted [Sarandos], but geez. Sarandos has gone on the record saying theatrical films are dead. ‘Theatrical is dead. Quote, unquote.’”
Cameron, at least, remains unconvinced that Netflix would truly commit to any meaningful theatrical distribution if it expanded. “It’s sucker bait,” he said. “‘We’ll put the movie out for a week or 10 days. We’ll qualify for Oscar consideration.’ See, I think that’s fundamentally rotten to the core.
“A movie should be made as a movie for theatrical, and the Academy Awards mean nothing to me if they don’t mean theatrical. I think they’ve been co-opted, and I think it’s horrific.”
If Netflix does buy Warner Bros., it would potentially see HBO Max absorbed into the streamer, bringing upcoming shows such as House of the Dragon and the new Harry Potter TV series onto Netflix itself.
And what of Warner Bros.’ video games? It has Mortal Kombat developer NetherRealm, Batman: Arkham maker Rocksteady, and Hogwarts Legacy studio Avalanche on its books. Next year, Warner Bros. is set to release Traveller’s Tales’ Lego Batman: Legacy of the Dark Knight.
Whatever the future holds, a dramatic change in the entertainment landscape is coming for Warner Bros. and all its IP. What will Netflix do with the DC Universe? Will the big decade-long plan for Superman and friends fall by the wayside as part of a pivot to streaming? Will James Gunn stick around to find out?
Wesley is Director, News at IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].
