Netflix was already planning to invest in cinemas before buying Warner Bros.

The leaders of the streaming giant, Ted Sarandos and Greg Peters, explain why they never dared to take the plunge. Until the Warner takeover.

Why has Netflix never dared to take the plunge into streaming to try theatrical release?

During an interview about fourth quarter 2025 results (via Variety), Netflix executives Ted Sarandos and Greg Peters revealed that they had already considered developing their own theatrical distribution channel:

“We have debated many times over the years whether we should create a film distribution network or not,” Sarandos explained. “In a world of prioritizing and managing limited resources, this project never made it to the top of the list.”

Greg Peters, for his part, emphasizes that Netflix’s core business – streaming – required their full attention. “We were focused on other investments,” he adds, recalling that the rapid growth of the platform has always been the top priority.

If Sarandos had previously described the cinematic experience as “outdated”he clarifies today that this point of view only reflected Netflix’s commercial situation at the time. “We weren’t in the movie business when I made these observations. Remember, I’ve said many times: It’s a business, not a religion. Conditions change.”

This change in conditions is precisely linked to the planned takeover of Warner Bros. studios. Discovery for $83 billion, which gives Netflix immediate access to a leading film infrastructure, without having to build it from scratch.

“We will soon enjoy global film distribution, worth over $4 billion at the box office,” underlines Sarandos, who is committed to maintaining a theatrical window of 45 days before the streaming release for Warner Bros. films.

Remember that, even without its own division, Netflix has already experimented with cinema with successful limited releases, such as the finale of Stranger Things 5 Or KPopDemon Hunters. Thus, Peters believes that these tests, combined with the distribution agreements, have proven that cinema can be “an effective complement to the streaming model”.