Netflix admits that it got the value of cinema theatrical wrong. But still don't expect Netflix films in cinemas.
Netflix co-chief Ted Sarandos says that following the acquisition of Warner Bros, it will run that business with 45-day [theatrical exclusive] windows. It was in an interview with the New York Times where he also had a bit to say about Trump and his potential role in the merger approvals.
On preserving theatrical, he told Nicole Sperling at the NYT that when they started looking at the WBD books, they busted some misconceptions they had about the theatrical business and have shifted perspective.
I think people are still skeptical about this new commitment to the theatrical business.
I understand that folks are emotional about it because they love it and they don’t want it to go away. And they think that we’ve been doing things to make it go away. We haven’t.
When this deal closes, we will own a theatrical distribution engine that is phenomenal and produces billions of dollars of theatrical revenue that we don’t want to put at risk. We will run that business largely like it is today, with 45-day windows. I’m giving you a hard number. If we’re going to be in the theatrical business, and we are, we’re competitive people — we want to win. I want to win opening weekend. I want to win box office.
Do you regret saying that the theatrical business was an “outmoded idea”?
You have to listen to that quote again. I said “outmoded for some.” I mean, like the town that “Sinners” is supposed to be set in does not have a movie theater there. For those folks, it’s certainly outmoded. You’re not going to get in the car and go to the next town to go see a movie. But my daughter lives in Manhattan. She could walk to six multiplexes, and she’s in the theaters twice a week. Not outmoded for her at all.
But before you get the wrong idea about a flood of Netflix films flooding cinemas, I’d suggest taking a step back. It’s important to consider how Netflix is going to integrate Warner Bros and its movie strategy into the broader Netflix business.
Yeah, you may see the occasional Netflix film make its way into wider release and leaning on the Warner Bros infrastructure to see that distribution happen. But more often then not, I’d suggest that Warner Bros films will just be distributed the way that they had been, while Netflix will continue to be primarily an in-home experience.
Netflix has always been and always will be a home entertainment utility service.
Interestingly, not everyone is entirely into the spirit of the Netflix-WB deal:
What did Reed Hastings, the chairman and co-founder of Netflix, think of the deal?
Reed’s more in the build vs. buy mode. In total Reed is not an enthusiast about these kinds of deals, but he was very supportive of it.
On the Trump of it all:
How much involvement do you expect from President Trump, and how do you intend to navigate that?
Every conversation I’ve had with him has been about the movie business and protecting American jobs and American production. What I’ve come to understand is he sees this as an important industry. It’s an industry he likes a lot, so he’ll take a keen interest in it. He also made it clear that what he understands is there’s a group who will approve the deal, and he’s taking a keen interest in it but in the context of protecting jobs and protecting the industry.
How often are you speaking with him?
I’ve talked to him a couple times since the election.
Did you see the Truth Social post he posted on Sunday sharing an editorial arguing that the Netflix deal is terrible and the Paramount offer is better?
I don’t know why he would have done that. No conversation we ever had was about any of the things that were in that article that he posted. I don’t want to overread it, either.
It’s worth noting that in the days following the Netflix-Warner Bros deal announcement, Trump acquired corporate bonds issued by both companies valued as high as US$1m each. Trump has said he plans to weigh in on the sale of the business, so, that raises all sorts of questions in light of his now-revealed financial stake.
There’s obviously a lot to get through between now and the deal closing, but something I’m more than a bit interested in is how a purchase of Warner Bros will impact Netflix House, the new Netflix event spaces that the company is rolling out across the US. Will they eventually come to include Warner Bros properties, or will they remain a pure Netflix-branded entertainment hub? I’d assume there’ll be some bleed of WB into Netflix House spaces, but how full-throatedly Netflix embraces WB properties into it will be interesting to see.
Related: A news story that I meant to include on Friday’s email, but I just lost track of it while juggling some other priorities that morning, was this interesting deal with Netflix signing a deal with Sony Pictures to extend its Pay-1 licensing deal.
The current deal gives Netflix exclusive access to Sony films following their theatrical and premium video-on-demand (ie renting/buying the films from Apple, Google, Amazon, etc) runs. It also gave them access to some direct-to-streaming titles, which included the massive KPop Demon Hunters.
The new deal will start later this year and will also include global distribution of pay-1 Sony titles on Netflix. Obviously, there are pre-existing arrangements already in place for some films, but full-global access to the titles will be in place for the 2029-2031 stretch of the contract. You can read more at Deadline.
News Desk
Steve Coogan and Caleb Jonte Edwards (an Australian actor whose only credit so far was an episode of Stan original Black Snow) will join the season 4 cast of The White Lotus. One assumes Steve Coogan won’t be visiting the hotel as Alan Partridge, which is obviously a creative mistake that can be corrected before filming begins… Read: Variety
Short-fingered US President Donald Trump says he will sign an executive order to make the annual Army-Navy football game to broadcast TV - great news for current rights-holder Paramount, owned by family friend David Ellison. Read: THR
Brian Stelter reports that 60 Minutes is set to finally air the pulled story about Venezuelan men deported by the US to a hellish prison in El Salvador. Read: Reliable Sources
The “24-hour TikTok challenge” calls for people to hide in stores like Walmart and Target for 24 hours and livestream it all on TikTok without being caught. Florida’s Isaac Matthew Hurley is out on bond after being arrested. Read: WFLA
A new Speedy Gonzales film is reportedly in development at Warner Bros. Read: THR
As talk intensifies about the BBC making content for YouTube as a primary distribution channel, questions have been raised about what that means for its annual license fee. Read: The Guardian
Former Paramount co-CEO and a former Head of The Class cast member Brian Robbins has launched a new family production company that will develop short-form animated and live-action YouTube content. Read: The Wrap
Joe Carnahan has spoken about the real-life inspiration for The Rip. Read: The Wrap
Promoting The Rip on The Joe Rogan Experience, Matt Damon and Ben Affleck talked about Netflix notes which asked for an action sequence to be introduced at the start of the film, along with the plot to be reiterated 3-4 times throughout the film to keep people on their phones engaged with the film. Here’s Affleck on what can be achieved by not taking those notes:
“But then you look at Adolescence, and it didn’t do any of that sh*t. And it’s f*cking great. And it’s dark too. It’s tragic and intense. [It’s about] this guy who finds out his kid is accused of murder, and there are long shots of the back of their heads. They get in the car, nobody says anything.”
Trailer Park
The Madison, part of the extended Yellowstone universe, debuts on Paramount+ March 14. Among its cast: Michelle Pfeiffer, Kurt Russell, and Matthew Fox.
“The Madison” chronicles the lives of the Clyburn family and is a “heartfelt study of grief and human connection following a New York City family in the Madison River valley of central Montana.”
The Fall and Rise of Reggie Dinkins debuts on NBC Jan 18 with a preview episode, then runs weekly from Feb 23. It stars Tracy Morgan, Daniel Radcliffe, Erika Alexander, Bobby Moynihan, Precious Way, Jalyn Hall.
A Father’s Miracle debuts on Netflix Feb 13. It’s a Mexican remake of the film Miracle in Cell 7.
A devoted father is wrongfully imprisoned for a crime he didn't commit, leaving his daughter to fend for herself as he fights to prove his innocence.
Star Search debuts on Netflix Jan 20 The judging panel includes Jelly Roll, Sarah Michelle Gellar, and Chrissy Teigen. Anthony Anderson hosts.
That’s the newsletter for the today.
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