UK (Parliament Politics Magazine) – UK cinema groups call on Labour to act over Netflix’s Warner Bros takeover, warning it could limit theatrical releases and cost jobs.
As reported by The Telegraph, Labour faces pressure from cinemas over Netflix’s Warner Bros deal, citing concerns about a limited number of films in theatres.
How are cinemas warning Labour about Netflix’s Hollywood move?
Cinema executives have raised concerns with Media Minister Ian Murray about Netflix’s $83bn takeover of Warner Bros, warning it may reduce the number of films in theatres.
In correspondence with MPs from the Culture Select and Business & Trade Committees, Phil Clapp, head of the UK Cinema Association, warned the takeover would be a “significant blow” to an industry still struggling with post-pandemic recovery.
Mr Clapp said the proposed agreement would primarily disadvantage audiences and could result in major job losses within the industry.
He stated,
“Everything we’ve seen from Netflix in terms of their words and actions gives us great concern that if Warner Bros were to be acquired by Netflix then that supply of Warner Bros films, if not switched off entirely, would be presented in a way that would be much less attractive and much less economically viable for cinemas.”
Mr Clapp added,
“The concept of the loss of one of the major studios, which is what this is, whether it’s Netflix or Paramount doing the acquisition, is a bad thing for cinema. Audiences will undoubtedly have a much thinner selection both in terms of quantity and quality of films were this deal to be allowed to go ahead.”
The industry urged Mr Murray to intervene in the takeover, with calls for both committees to launch a formal probe.
In a move to escalate their opposition, cinema chains have pledged to raise their concerns with competition regulators across the UK, US, and Europe, while the European trade body UNIC has also submitted its stance to the European Commission.
Industry executives have raised concerns over a Paramount takeover of Warner Bros, with the Hollywood studio owned by billionaire Ellison submitting a hostile $108bn bid.
The planned acquisition has raised concerns due to Netflix’s aversion to theatrical releases. Ted Sarandos, Netflix co-CEO, has called cinema-going “outmoded,” saying audiences increasingly favor watching films at home.
Theatre operators claimed Netflix often avoids releasing films on the big screen, limiting theatrical runs to the minimum required for award eligibility, including the Oscars.
Netflix has rejected claims it would undermine cinemas following a Warner Bros acquisition. Its Co-CEO said
“We didn’t buy this company to destroy that value.”
How did UK cinemas warn about Netflix limiting big-screen access?
Tim Richards, chief executive of Vue Cinemas, said
“I think that comment needs to be taken into consideration of a minimum of five years of negative sentiment against theatrical releases. So one would have to not put a lot of credibility on that statement.”
The Prince Charles Cinema’s Ben Freedman, which has a cult following for classic films, warned that Netflix could remove Stanley Kubrick’s works from circulation.
He said,
“There will be a concern given the way Netflix limits access to films under their control to cinemas.”
Mr Freedman added,
“I know why they would want to do it because if the only place you can see a Kubrick film is on Netflix then you’re more likely to have a Netflix subscription, but I think Stanley Kubrick would be pretty gutted if that was the only way to see his films. He didn’t make them to be seen on streaming.”
Industry figures have also raised worries over a Paramount takeover, which would merge two of Hollywood’s biggest studios.
They warned that such consolidation would reduce film production, citing Disney’s 2019 $71bn deal to acquire 21st Century Fox from Rupert Murdoch.
Who is the owner of Netflix?
Netflix is a publicly traded company with institutional investors as its major shareholders. Its largest shareholders are institutional investors, who own nearly 79.7% of the company’s stock as of recent data. These include firms like Vanguard and BlackRock.
As a measure of its value, Netflix has a market capitalization of around $434 billion. For its business performance, the firm reported $39 billion in revenue and $8.7 billion in net profit for 2024.
