In the days after Netflix’s deal to buy Warner Bros., HBO, and HBO Max for $82.7 billion, the future of theatrical distribution has quickly become one of the most closely watched parts of the deal.As doubts grew about whether the streaming giant would reduce or even scrap traditional theatrical releases, Netflix co-CEO Ted Sarandos held a conference call with investors and press on December 5.“It’s not like we have this opposition to movies into theaters,” he said, as quoted by Variety.Sarandos highlighted the video streaming service’s evolving relationship with cinema, noting its growing theatrical presence. He said that the platform has already released around 30 films in theaters in 2025, even though their runs are shorter than those in the traditional studio model.“My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer friendly, but when we talk about keeping HBO operating, largely as it is, that also includes their output movie deal with Warner Bros., which includes a life cycle that starts in the movie theater, which we’re going to continue to support,” he explained.Sarandos added that while theatrical windows may “evolve,” Netflix intends to sustain the studio tradition Warner Bros. already follows.Netflix and Warner Bros. plan to navigate the future of theatrical distributionAs discussions continue about the future of theatrical distribution, industry focus has shifted once again to Netflix and Warner Bros., two studios whose strategies have often been seen as quietly opposed. However, as executive comments and recent negotiations suggest, the situation is more complex than it seems.Instead of indicating a sudden change in policy, platform leaders have stated that the relationship between streaming and theatrical releases is shifting toward a long-term balance, driven by audience demand and release flexibility. This was emphasized when Ted Sarandos addressed expectations around theatrical windows.“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,” Sarandos said.“I’d say right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros., and Netflix movies will take the same strides they have, which is, some of them do have a short run in the theater beforehand. But our primary goal is to bring first-run movies to our members, because that’s what they’re looking for.”Netflix To Purchase Warner Bros. (Image via Getty)The movie-streaming service has prioritized streaming-first distribution while selecting certain prestige titles for limited theatrical runs. Past examples include Noah Baumbach’s Jay Kelly, Guillermo del Toro’s Frankenstein, and Kathryn Bigelow’s A House of Dynamite.The company has also invested directly in exhibition by restoring and operating the Paris Theater in New York and the Egyptian Theatre in Los Angeles. During the period when the streaming service was competing with Paramount and Comcast for Warner Bros. Discovery, it assured WBD executives that existing theatrical commitments would be fully honored if the acquisition went through.Stay tuned for more updates.