The acquisition of Warner Bros by Netflix marks one of the most consequential shifts in Hollywood since the conglomerate takeovers of the 1970s and 1980s. Warner Bros, the studio behind classic crime pictures and the Batman franchise, now falls under the control of a streaming service. This follows the earlier merger of Paramount with Skydance Media and Disney's purchase of 21st Century Fox, signalling how streaming platforms have fundamentally altered the industry.
For Netflix, the deal is partly about acquiring valuable intellectual property, including the DC Universe, Harry Potter, Barbie and Game of Thrones. But the company has two unfulfilled ambitions: winning the Academy Award for best picture and producing a genuine blockbuster. Despite its success, Netflix has yet to achieve either, and its failure with high-budget films like The Electric State, The Gray Man and Red Notice has demonstrated that making tentpole movies is harder than it looks.
Netflix's shift towards advertising has also changed its priorities, making individual film performance more important to its bottom line. The company has increasingly embraced theatrical releases for prestige titles, recognising the marketing benefits, the appeal to top talent, and the necessity of a cinema run to qualify for Oscar consideration. It has sought to reassure cinema operators that Warner Bros' upcoming slate will still appear on the big screen.
However, Netflix co-CEO Ted Sarandos has indicated that the traditional theatrical window will 'evolve', suggesting films may be moved to streaming more quickly once they have served their purpose. Ultimately, the purchase gives Netflix access to the machinery of large-scale filmmaking, offering it a better chance of producing the kind of big-screen entertainment that has so far eluded the company.
