Netflix–Warner Bros Mega Deal: Is There a Change for Global and Indian Cinema?

The global entertainment sector was left in a state of shock when Netflix, the most significant streaming giant of the world, announced its biggest deal with the famous Hollywood studio, Warner Bros. In a stunning and unthinkable move worth around ₹6.5 lakh crore, Netflix is going to take over not only Warner Bros Discovery's legendary film studios but also its entire streaming division, a takeover so gigantic that it has already become the most expensive acquisition the company has ever made. The deal heralds a new era, not just for Netflix and Warner Bros, but for world cinema in general.

This daring action is not only going to change things in Hollywood but also be the reason for a tsunami of changes in the Indian film industry. Affected the most will be single-screen theatres.

How This Deal Could Transform Indian Cinema

The impact of this deal on the Indian market is the biggest issue of concern. The short-winded view of the movie industry experts is that Netflix will very soon start the practice of bringing the films to OTT within four weeks of release, thus shortening the traditional theatrical window.

Nothing sleep now, films used to get a 6-8 week exclusive run in theatres before coming to OTT Netflix has promised to keep theatrical releases, however, insiders suggest that:

• The number of theaters will be less
• Releases will be mostly in multiplex chains
• Single-screen theaters will find it tough to survive

This gradual change will affect the low-budget and regional films the most. The latter will be simply cut off from the film market if they are not present in the list of those released through multiplexes.

Multiplexes May Survive, But Single Screens Are at Risk

The Multiplex Association of India (MAI) has come out with guns blazing against the deal. The MAI scenario is like:

• the chain of uninterrupted supply of big studio films to theatres may get thinned out
• the mainstream of direct-to-OTT releases, Netflix will focus more on it
• PVR and INOX might also forge partnerships with studios for a while
• but the single-screen theaters might have to put up with very few options only

With the audience already being used to rapid OTT releases, there is a warning from the experts that the thrill of going to theaters might decline dramatically, thereby risking the shutdown of thousands of small theater operations in India.

Why Theatres Still Matter—Even for Netflix

While Netflix remains the number one respective player in the digital segment by a huge margin, it still acknowledges one big fact: not all films are for the home screen—some films are meant to be experienced at the theater only.

Such are the blockbusters like:

• Avengers
• Batman
• Godzilla
• Dune

that, for instance, cannot possibly have the same cinematic impact at home as they did in theaters. Even Netflix is convinced of the fact that a theatrical release enhances the visibility, marketing, and the overall long-term value of a film.

This is why the company has made it clear that it will still be producing films for theaters. Especially for those expensive sets. A strong theatrical run often translates into higher OTT viewership later, thus making it a win-win strategy.

The Big Question: Are We Heading Toward an OTT-First Future?

This Netflix–Warner Bros deal is indicative of the strong move towards setting up an OTT-first entertainment ecosystem. Multiplexes will take the necessary steps but to a single-screen theater this challenge will be the hardest one yet.

The years ahead will probably prove to be a turning point for:

• how and when, the films are released
• how long they will remain in the main offer

And maybe by that the audience's choice will change, between big screens and small screens.

Though, the global movie business is undoubtfully moving into a new era.