Netflix Quietly Plotted Cinema Expansion Before Warner Bros. Deal

Netflix’s long-standing reluctance to embrace the big screen has taken a surprising turn, with co-CEO Ted Sarandos revealing the company had been weighing up a move into cinema distribution for years before its acquisition of Warner Bros. Discovery. Sarandos, who’s been known for his firm stance against wide theatrical releases for Netflix originals—beyond the bare minimum needed for awards eligibility—has now admitted the idea was never truly off the table.

During the Q4 2025 earnings call, Sarandos and fellow co-CEO Greg Peters addressed the company’s evolving approach. They explained that, despite previous comments, they weren’t fundamentally opposed to cinema releases. Instead, their main focus had been on managing the rapid growth of their streaming platform. Sarandos put it plainly:

“We were not in the theatrical business when I made those observations. Remember, I’ve said it many times, this is a business, not a religion. So conditions change. Insights change. And we have a culture that we reevaluate things when they do. We debated many times over the years whether we should build a theatrical distribution engine or not, and in a world of priority-setting and constrained resources it just didn’t make the priority cut.”

Shifting Priorities and the Warner Bros. Discovery Acquisition

With the purchase of Warner Bros. Discovery, Netflix is set to inherit a ready-made global cinema distribution network. Sarandos commented on the deal, saying:

“We will have the benefit of a scaled, world-class theatrical distribution business with more than $4 billion of global box office. And we’re excited to maintain it and further strengthen that business.”

For years, industry watchers have wondered why Netflix seemed so determined to keep its films out of cinemas. While the company has occasionally given its titles a limited run to qualify for the Oscars, Sarandos has always publicly insisted that streaming was the main game. His latest remarks suggest the company has been more open to a hybrid approach than previously let on, with internal debates happening behind closed doors. The real question is why it took so long for these plans to move forward.

Blockbusters That Missed the Big Screen

Netflix has rolled out some massive titles in recent years, including the two Knives Out sequels, Taron Egerton’s action flick Carry-On, the streamer’s previous chart-topper Red Notice, and last year’s KPop Demon Hunters. Any of these could have raked in serious box office takings if given a proper cinema run before landing on the platform.

Despite this, Sarandos and Peters kept their eyes on the prize: keeping subscribers happy and the monthly revenue rolling in. They seemed to reckon that most punters would stick around for new content, regardless of whether a handful of films hit cinemas first. Now, with the Warner Bros. deal, Netflix is poised to make a bigger splash in the cinema world, though it looks like those films will still carry the Warner Bros. label, while Netflix originals remain exclusive to the platform.