(KRON) – Netflix is making seismic shifts in the entertainment business that might eventually impact Bay Area movie theaters. Netflix announced on Friday that the streaming service struck a deal with Warner Bros. Discovery to purchase the Hollywood studio and streaming business for $72 billion. G lobal girl group KATSEYE brings viral moves in Bay Area debut at sold-out SF show What is Netflix getting in the deal? Under the agreement, Netflix will acquire Warner Bros. film and television studios, HBO Max and HBO. Netflix would own the legacy studio’s popular entertainment properties like DC Studios, "Game of Thrones" and the "Harry Potter" franchise. How could Netflix buying Warner Bros. affect theatrical releases? Warner Bros. releases most of their movies to theaters first before they move to HBO Max, but Netflix could shift the studio’s strategy. On a conference call with investors and press, Netflix CEO Ted Sarandos expressed his stance on theatrical releases.  “My pushback has been mostly in the fact of the long, exclusive windows, which we don’t really think are that consumer friendly,” Sarandos said. Box office numbers improved during the summer, but movie theater chains are still struggling to regain pre-pandemic attendance numbers. In April at the TIME100 Summit, Sarandos argued that Netflix actually “saved Hollywood.” When asked about the moviegoing experience, he said, “I believe it is an outmoded idea, for most people — not for everybody.” Ben Affleck, from left, Catalina Sandino Moreno, Steven Yeun and Matt Damon arrive at Netflix TUDUM 2025: The Live Event on Saturday, May 31, 2025, at Kia Forum in Inglewood, Calif. (Photo by Richard Shotwell/Invision/AP) Movie theaters and film producers have pushed back on Netflix’s acquisition. The world’s largest trade group made of movie theater owners, Cinema United, issued a statement opposing the merger, saying, “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business.” A group of anonymous “concerned feature film producers” sent a letter to members of Congress outlining their concerns about the acquisition. The producers argued that Netflix would “effectively hold a noose around the theatrical marketplace” once the merger is finalized. How could Netflix’s acquisition impact movie theaters in the Bay Area? It is not completely clear how Netflix’s big purchase will affect movie theaters in the Bay Area. When talking about the acquisition, Sarandos said that Netflix will continue theatrical releases for Warner’s studio films — honoring Warner’s contractual agreements for movie releases. 2026 FIFA World Cup schedule released The merger is still subject to regulatory approvals, approvals from shareholders and other closing conditions. The transaction is expected to close in 12 to 18 months, Netflix said in a statement. Bay Area theaters should not feel the impacts immediately. Theatergoers should still expect Warner Bros. movies like “Supergirl” and “Dune: Part Three” to receive theatrical releases in 2026, but films beyond that timeframe could face some uncertainty depending on Netflix’s decisions. Netflix has not been completely opposed to releasing movies to theaters. The streamer released Guillermo del Toro’s “Frankenstein” film to select theaters on Oct. 17 and released Rion Johnson’s “Wake Up Dead Man: A Knives Out Mystery” on Nov. 26 as part of a two-week theatrical run. Netflix is even putting the finale of its most popular television series “Stanger Things” in theaters. New theaters have recently opened in San Francisco and in the South Bay, so the movie theater business will likely operate as usual, at least for the foreseeable future. ...read more read less