Business
Netflix’s plan to buy Warner Bros. throws the theater industry into upheaval
A man walks past movie posters at at AMC Theater in Montebello, California on May 5, 2025.
Frederic J. Brown | AFP | Getty Images
Movie theater operators woke up Friday to the possibility of a new world order.
Netflix and Warner Bros. Discovery announced a deal for the streaming giant to acquire WBD’s film studio and streaming service, bringing an end to a months-long bidding process that saw Paramount Skydance and Comcast also vying for the assets.
With Netflix as the victor, exhibitors are in a panic.
Unlike traditional movie studios, the streamer has not adhered to conventional theatrical distribution, and there are fears that big changes could be coming to an industry that is still struggling post-pandemic.
“It’s no secret that this was probably the least desired outcome for many theater owners,” said Shawn Robbins, director of analytics at Fandango and founder of Box Office Theory. “There are no two ways around that. This may be one of the most meaningful days in the history of the business, but it could yet be a constructive one for cinema if Netflix honors early indications that it will maintain the theatrical business model of Warner Bros. properties and lean into those unique strengths which are not replicable on the streaming platform.”
Cinema United, the world’s largest exhibition trade association, came out strong Friday morning against the sale of WBD assets to Netflix.
“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” CEO Michael O’Leary said in a statement. “The negative impact of this acquisition will impact theatres from the biggest circuits to one-screen independents in small towns in the United States and around the world.”
A half dozen movie theater operators who spoke to CNBC shared concerns that Netflix’s acquisition of WBD would lead to a significant decline in the number of films made available to cinemas annually and, therefore, hit annual box office ticket sales.
“Netflix’s stated business model does not support theatrical exhibition. In fact, it is the opposite,” O’Leary said.
Cinema United said the deal “would risk removing 25% of the annual domestic box office” putting smaller theater chains and independent cinemas, in particular, at risk.
“We are going to be pulling all of the levers we can because we think that a deal of this magnitude and the potential impact that it will have is something that everyone with regulatory and oversight authority needs to look closely at,” O’Leary said on CNBC’s “Squawk on the Street” Friday. “So, we’ve already been talking to people at the federal level, at the state level and internationally because this is a significant, significant threat, we believe, to the long-term viability of the theatrical exhibition.”
And Cinema United isn’t the only group worried about the future of the industry if the Netflix deal is approved.
A collective of top industry players sent an open letter to Congress detailing the potential economic and institutional blowback that could play out if the merger goes through.
The letter, reported by Variety, stated that Netflix would “effectively hold a noose around the theatrical marketplace” and could alter the footprint of theatrical movies and decrease licensing fees paid in post-theatrical windows.
An uncertain future
Several exhibitors told CNBC that they fear a deal between WBD and Netflix will result in fewer theatrical releases and even shorter theatrical windows for would-be major releases.
Consolidation in the studio space has been a growing issue for the theatrical industry in recent years. When studios merge, they typically decrease the number of films they produce, something the industry saw firsthand when Disney bought 20th Century Fox back in 2019.
The theatrical business has struggled in recent years from pandemic related production shutdowns as well as dual labor strikes that halted film shoots and delayed movie releases. The industry still has not returned to pre-pandemic release numbers or box office ticket sales, and there are worries that it never will.
“If you look historically, when legacy studios are absorbed by other entities, even in the case where those other entities are also legacy studios, the amount of movies produced for theatrical distribution goes down,” O’Leary told CNBC Friday.
Netflix co-CEO Ted Sarandos said during an investor call Friday morning following the deal announcement that planned Warner Bros. releases “will continue to go to the theaters through Warner Bros.”
Sarandos doesn’t plan to alter WBD’s current business practices, a person familiar with the matter told CNBC, speaking on the condition of anonymity to discuss private conversations. Still, he does plan to meet with theater owners in an effort to assuage any concerns and to explain his vision that movies should have shorter exclusive theatrical windows, the person said.
For exhibitors, shrinking theatrical windows pose a major threat.
Prior to the pandemic, movies typically played in theaters for between 70 and 90 days before entering the home market. Following Covid shutdowns, studios and cinemas renegotiated these terms, and the average window fell to 30 to 45 days.
Netflix, however, has never followed these guidelines. The company has long held that its content is meant for its streaming subscribers and therefore should be delivered to them at home, on the service as soon as possible.
If Netflix does release a film in cinemas, it’s usually only for the minimum requirement to be eligible for awards contention or for weekend stints as one-off events.
When Netflix does go to theaters, it doesn’t report box office figures publicly. That’s left industry analysts wondering if the company will continue WBD’s transparency when it comes to ticket sales once the deal is finalized.
“We’ve released about 30 films into theaters this year, so it’s not like we have this opposition to movies in the theaters,” Sarandos said during Friday’s investor call. “My pushback has been mostly in the fact of the long exclusive windows, which we don’t really think are that consumer friendly.”
“Netflix movies will take the same strides they have, which is some of them do have a short run in the theater beforehand, but our primary goal is to bring first-run movies to our members, because that’s what they’re looking for,” he said.
Of course, that strategy could shift in the coming years.
Alicia Reese, an analyst at Wedbush, highlighted in a research note Friday that the theatrical slate has already been negotiated through 2029.
“So any buyer would have to honor those contracts by showing the slated WBD films in theaters for at least the next four years,” Reese wrote.
One theater chain operator, speaking on the condition of anonymity to share candid thoughts, told CNBC, “All exhibition can do is take Netflix at their word.”
“In the deal they have pledged to continue to release legacy WB titles to theatres,” the operator said. “Now does that mean with a one-week window, a four-week window or no window? Netflix will have to diametrically alter their corporate philosophy of streaming first. We just have to wait to see. It’s not great for exhibition.”
— CNBC’s Alex Sherman and Stephen Desaulniers contributed to this report.
Disclosure: Comcast is the parent company of Fandango and NBCUniversal, which owns CNBC. Versant would become the new parent company of Fandango and CNBC upon Comcast’s planned spinoff of Versant.
Last Updated:
Gold is sold at a discount in Dubai due to Middle East conflict disrupting flights. Traders offer up to $30 per ounce less than London prices.
Dubai Gold Selling Cheaper As Iran War Grounds Flights
Gold is being sold at a discount in Dubai as the widening conflict in the Middle East disrupts flights and hampers the movement of bullion from one of the world’s key trading hubs.
According to a Bloomberg report, traders in Dubai are offering discounts of up to $30 per ounce compared to the global benchmark price in London. The unusual price cut comes as shipments remain stranded due to flight disruptions triggered by the escalating conflict involving Iran and Israel.
Dubai is a key global centre for refining and exporting gold to markets across Asia, including India. However, partial airspace restrictions and heightened security risks have slowed the movement of bullion out of the region.
Why Gold Is Being Sold Cheaper
Gold is typically transported in the cargo holds of passenger aircraft. With several flights from the UAE restricted amid regional tensions, traders are struggling to move bullion to international markets.
At the same time, insurance and freight costs have surged, making shipments more expensive and uncertain. Many buyers have therefore stepped back from placing new orders, unwilling to bear high logistics costs without assurance of timely delivery.
To avoid paying prolonged storage and financing costs while shipments remain stuck, some traders are offering gold at discounted prices.
Although transporting bullion by road to airports in neighbouring countries such as Saudi Arabia or Oman is theoretically possible, logistics firms are reluctant due to the risks and complications of moving high-value cargo across land borders during a conflict.
What It Means For India
India, one of the largest buyers of gold shipped from Dubai, could face short-term supply disruptions if the situation continues.
Renisha Chainani, head of research at Augmont Enterprises Ltd., said several cargo shipments have already been delayed, creating temporary tightness in the availability of physical bullion in India.
However, industry experts as reported by Bloomberg say the immediate impact may remain limited as domestic inventories are currently comfortable after heavy imports earlier this year.
Chirag Sheth, principal consultant for South Asia at Metals Focus, said Bloomberg that India has ample stocks for now, but warned that prolonged disruptions could eventually affect supply if the conflict continues for several months.
Meanwhile, global gold prices have surged this year amid geopolitical uncertainty, with spot gold recently trading above $5,000 per ounce.
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March 08, 2026, 10:03 IST
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Some seven in 10 British adults without a full driving licence say learning to drive is currently unaffordable, according to a survey.
The figure is even higher among younger people, with 76% of 18 to 29-year-olds without a licence saying driving lessons are financially out of reach, the poll for car insurer Prima found.
Overall, 38% said the cost of driving lessons was the biggest deterrent to learning to drive.
Some 32% were put off by the price of buying a car and 15% said the cost of car insurance was the main barrier to learning to drive.
Almost half (45%) said they would consider learning to drive if it became significantly cheaper.
Nick Ielpo, UK country manager at Prima, said: “For a growing number of people, driving is no longer a symbol of freedom – it’s a financial stretch too far.
“Between lessons, buying a car and insuring it, the upfront and ongoing costs are pricing many people out before they even start.”
Find Out Now surveyed 1,134 adults who do not hold a full driving licence between January 21 and 23.
KARACHI:
The Pakistan Stock Exchange’s (PSX) KSE-100 index experienced a sharp decline in the outgoing week, closing at 157,496 points, down 6.3% week-on-week, or 10,566 points.
This follows last week’s fall and brings the cumulative decline from its January 2026 peak of around 189,167 points to nearly 17%. The sell-off was driven by heightened geopolitical tensions stemming from the US-Iran conflict, which has rattled regional markets and prompted investors to reduce exposure amid fears of broader instability, rising energy prices and domestic security concerns.
On a day-on-day basis, the PSX commenced the week with its historical single-day decline as the benchmark KSE-100 index plunged 16,089 points, or 9.57%, to close at 151,973. Next day, it staged a partial recovery, with the index advancing 5,159 points, or 3.39%, at 157,132.
On Wednesday, however, the PSX witnessed a directionless session, when the KSE-100 closed at 155,777, down 1,355 points (-0.86%). The PSX recorded a sharp rebound on Thursday, with the benchmark index gaining 5,433 points (+3.49%) to close at 161,211. The market closed the week on a cautious note as the KSE-100 dropped by 3,715 points (-2.30%) to settle at 157,496.
In its weekly report, Arif Habib Limited (AHL) mentioned that the KSE-100 index witnessed a lacklustre performance during the outgoing week, closing at 157,496 points, down 6.3% WoW (10,566 points) amid geopolitical tensions due to the US-Iran conflict. The Consumer Price Index (CPI) for February 2026 hit 7% year-on-year, the highest level since October 2024, compared to 5.8% in January 2026.
Among other economic data, a trade deficit of $3 billion was recorded in February. Exports amounted to $2.3 billion (-8% YoY) while imports reached $5.3 billion, down 1.6% YoY. Total cement dispatches for the month rose 12.53% YoY to 4.19 million tons compared to 3.73 million tons in February 2025. Provisional urea offtake remained subdued, falling 28% YoY to 251k tons, marking the lowest monthly offtake.
AHL mentioned that gas production edged down 0.1% WoW to 2,687 million cubic feet per day (mmcfd) in the fourth week of Feb’26, while oil output fell 2.9% WoW to 59,103 barrels per day. A total of Rs581.7 billion was raised in the T-bill auction on Wednesday, with yields increasing across all tenors by 21.5 to 39.3 basis points. The government’s debt increased by 1% month-on-month to Rs79.3 trillion (+10% YoY) as of Jan’26 against Rs72.1 trillion in Jan’25.
Pakistan’s liquid foreign exchange reserves were recorded at $21.4 billion, up by $26.2 million, comprising $16.3 billion with the State Bank and $5.1 billion with commercial banks, AHL added.
Muhammad Waqas Ghani, Head of Research at JS Global, noted that the KSE-100 extended its decline during the week as heightened geopolitical tensions weighed on the market. The index dropped 10,566 points (-6.3%) WoW, following last week’s 5,108-point decline, pushing the cumulative fall from its January 2026 peak of 189,167 points to nearly 17%.
Market activity remained volatile throughout the week as investors continued to reduce exposure amid regional tensions and domestic security concerns. Sentiment also remained cautious ahead of key macro developments, with the IMF mission currently engaging with Pakistani authorities for the third review of the loan programme.
According to the Pakistan Bureau of Statistics, the inflation clocked in at 7% YoY for Feb’26, the highest since Oct’24. “We expect the SBP to keep its policy rate unchanged at 10.5% in the upcoming meeting as rising global oil prices may add to inflationary pressures,” he said.
Pakistan was exploring options to manage a potential gas shortfall after Qatar Energy halted LNG production following Iran’s attacks. On the other hand, Saudi Arabia assured Pakistan of secure oil supplies through the Port of Yanbu on the Red Sea to help meet energy needs. The government was also reviewing a proposal to shift to weekly revision of petroleum prices from fortnightly reviews, the JS head of research said.
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