Netflix co-CEO Ted Sarandos confirmed that the company will continue to support Warner Bros. movies in theaters after the planned $82.7 billion acquisition of Warner Bros. Discovery (WBD) is completed. Sarandos explained during an investor call that Netflix does not oppose theatrical releases, but prefers shorter exclusive periods before films are available on streaming platforms.

He stated, “It’s not like we have this opposition to movies into theaters. My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer-friendly.” Sarandos added that Netflix intends to keep HBO operating as it is, including its movie output deal with Warner Bros., which starts with a theatrical release. However, he expects the length of time movies stay exclusively in theaters to change over time, aiming for a more consumer-friendly approach.

Sarandos clarified, “I wouldn’t look at this as a change in approach for Netflix movies or for Warner movies. I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker.” He assured that all Warner Bros. films currently planned for theatrical release will continue as scheduled, and Netflix’s own movies will maintain their current strategy, with some having short theatrical runs before streaming.

The update follows the announcement that Warner Bros. Discovery and Netflix have agreed to move forward with exclusive deal talks at $27.75 per share for the studio and streaming assets. Both companies’ boards have approved the agreement, which includes a $5 billion break-up fee, and expect regulatory approval within 12 to 18 months.

Fellow Netflix co-CEO Greg Peters told analysts and press that Netflix is confident in its understanding of the entertainment business and does not plan to repeat mistakes made in previous industry mergers. Peters emphasized that Netflix is acquiring assets it understands and operates in, and that the company is in a strong, growing position.

Some theater owners and industry groups have expressed concerns about the deal. Cinema United President and CEO Michael O’Leary warned that the acquisition could threaten theaters of all sizes, stating that Netflix’s business model does not support traditional theatrical exhibition. O’Leary highlighted the economic and cultural importance of movie theaters to local communities and cautioned that fewer theatrical releases could lead to theater closures and job losses.

The Directors Guild of America (DGA) also commented, emphasizing the need for a competitive industry that supports creativity and talent. The DGA plans to meet with Netflix to discuss their concerns and better understand the company’s future plans.

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