Combining the world’s largest streaming platform with one of Hollywood’s most important theatrical distribution pipelines will further reduce the number of films available in theatres and compress windows

The Independent Cinema Alliance (“ICA”), a cinema trade organization representing approximately 5,000 independently operated movie screens throughout the United States and Canada, today announced their opposition to the proposed acquisition of Warner Bros. by Netflix.

“Netflix’s proposed acquisition of Warner Bros has significant implications for theatrical exhibition—especially for the communities that independent theatres serve, which rely on a consistent flow of wide-release titles and fair, predictable release windows,” said Frank Rash, Executive Director, ICA. “Netflix has made its position clear for years: it is built to serve consumers who watch content on personal devices, not to sustain a robust theatrical ecosystem for families and individuals who want to see movies in theatres.”

Disney’s acquisition of 20th Century Fox offers a cautionary tale. Since the deal was announced in 2017, the number of theatrical releases of Disney and its affiliated brands dropped by 40%. “A further reduction in output is not an abstract concern,” Rash said. “It means fewer films available to moviegoers, fewer stories reaching audiences, and ultimately fewer choices for consumers.”

A Netflix-controlled Warner Bros, which currently accounts for an industry-leading 24% of box office revenue, risks repeating, or worsening, the anticompetitive effects of industry consolidation. U.S. consumers understand that consolidation at this scale threatens the availability of movies on the big screen and the existence of independently owned theatres that serve their communities. The Justice Department must enforce the antitrust laws and block this proposed merger that will undermine film availability and diminish consumer choice.

“Independent theatres serve consumers who want to watch movies on the big screen, strengthen local economies, foster cultural connection, and preserve an essential American art form,” Rash added. “Any corporate transaction that threatens their viability—or narrows the choices available to the public—demands serious scrutiny. An open marketplace for cinema should not be allowed to collapse into a closed ecosystem controlled by a digital gatekeeper.”

ICA urges the Justice Department to carefully evaluate Netflix’s proposed acquisition of Warner Bros and ensure that any actions taken protect fair competition, robust theatrical output, and broad consumer choice.

About ICA

ICA is a not-for-profit, alliance of independent cinemas operating in communities throughout the United States and Canada. Theatres operated by alliance members range in size from single-screen venues in small towns to multiplexes in larger cities. Today a growing 180 member companies representing approximately 5,000 screens share one common goal: to provide a public voice that promotes the importance of independent cinemas as a vital and necessary part of a healthy and vibrant motion picture industry. For more information, visit www.cinemaalliance.org.

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“Netflix has made its position clear for years: it is built to serve consumers who watch content on personal devices, not to sustain a robust theatrical ecosystem for families and individuals who want to see movies in theatres.”