The Last Picture Show: How Netflix's Warner Bros. Takeover Signals the Death of Movie Theatres

In the summer of 1937, the Fox Vault fire destroyed thousands of silent-era films, an irreversible loss that reminded the world how fragile cinema can be when too much of it is stored in too few hands. Nearly a century later, the film industry faces a different kind of threat. Netflix’s acquisition of Warner Bros. has sparked discourse and fear that new generations may witness their own form of cultural loss, not as fast as a building going up in flames, but through a swift concentration of power. As control over Hollywood’s largest studios and libraries narrows, many worry we’re watching another moment in which the future of cinema becomes dangerously concentrated, with consequences that could completely reshape how films are made, and even completely wipe out the most accessible way of watching films. 

Aftermath of the fire, in which 40,000 films were destroyed. 75% of all 20th Century Fox films from before the 1930s were lost.

The scale of the takeover has triggered a great panic within the industry. Various guilds and unions, representing writers, directors, actors, and theater owners, have publicly warned that combining Netflix and Warner Bros. could slow competition between studios, undercut wages, and reduce opportunities for the younger generation of movie lovers and filmmakers.

From the perspective of a consumer, the dominance of a single company over so much content could reduce choice. Over time, it is highly possible that Netflix is capable of deprioritizing theatrical film releases in favor of streaming-first premieres, especially for smaller or riskier productions, because streaming offers more control over distribution and higher profit margins per view. 

With a concentration of rights over major franchises and IP, independent studios and smaller filmmakers could find it even more difficult to break into the industry than it already is. Fewer buyers, fewer distributors, and less incentive for diversity means that only the most safe content that guarantees engagement will likely get produced, reducing new ideas to be shared, and limiting the variety of stories told. 

The deal has sparked significant concern among theater owners and exhibition groups. Cinema United, representing thousands of theaters globally, warns that the acquisition represents an “unprecedented threat to the global exhibition business.” (LA Times) 

Industry estimates suggest the box office revenue could drop by as much as 25% if many Warner films skip a theatrical release and go straight to streaming. For smaller, independent theaters, who have already been struggling since the pandemic and the writer strikes of 2023, such a drop could be detrimental. Even some in Hollywood admit that the theatrical-first distribution model is under threat. While Netflix’s leadership has claimed it will continue to release Warner Bros. films theatrically, critics argue those assurances may only hold as long as existing contracts allow. After that, there’s a real possibility of a streaming-first strategy dominating.

Looking beyond the scope of economic and distribution, a deeper cultural loss is at stake. Movie theaters have long served as communal spaces, serving as a place where people can laugh, cry, or scream together. With content consolidation and straight-to-streaming becoming prioritized, the communal, ritualistic aspect of cinema is at risk of being lost. And in a world that can feel very divided, watching a film in the theater is an experience that is more important than ever. 

For filmmakers and independents, the consolidation threatens creative independence. With fewer buyers and fewer studios, smaller or riskier films that could be the defining films of the time, may never get made. Jobs in theatrical distribution, exhibition and even physical media could shrink or vanish, while the balance of power falls further toward a single corporate behemoth. 

Independent theaters in Los Angeles, the heart of cinema.

If this merger closes, and if Netflix chooses to lean into its streaming-first model, the decades-long practice of theatrical releases, independent theaters, and diverse film production could begin to unravel. The result is likely a gradual, structural decline in cinema culture, with fewer movies on the big screen, fewer theaters operating, and fewer opportunities for a new generation of film to rise. 

As the great Sean Baker said in his 2025 Oscar acceptance speech:

“Where did we fall in love with the movies? At the movie theatre.” 

If that tradition fades, then cinema risks losing more than just theatres, it loses the soul of cinema. 

SOURCES: 

1. https://cinematographomania.wordpress.com/the-infamous-fox-vault-fire/ https://about.netflix.com/en/news/netflix-to-acquire-warner-bros 

2. https://www.latimes.com/entertainment-arts/business/story/2025-12-05/netflix-warner-deal-how theaters-and-unions-are-reacting 

3. https://www.theguardian.com/film/2025/dec/05/netflix-warner-bros-deal-backlash https://aaspeechesdb.oscars.org/link/097-12/