Netflix's acquisition of Warner Bros. has sparked concerns among French exhibitors, particularly regarding the future of theatrical releases and the country's unique film economy. The deal, valued at $83 billion, marks a significant shift in the industry, with Warner Bros. being a key player in the French box office alongside Disney and Universal.
France is a crucial market for Netflix, both as its strongest international market and one of its most challenging due to strict regulatory environments. The 15-month windowing rule, which mandates a delay before Netflix can release movies on its platform after their theatrical debut, has been a point of contention between the streaming giant and French exhibitors. This rule also contributed to Netflix's decision to withdraw from the Cannes Film Festival in 2017, when the festival imposed theatrical requirements that effectively excluded Netflix films from competition.
The windowing system, a cornerstone of France's film industry, is now under scrutiny. Netflix has appealed to France's Council of State to reduce the window period, a move that carries added weight with the potential control of U.S. blockbusters under its umbrella. However, Richard Patry, president of the National Exhibitors Association (FNCF), has vowed to resist this change, emphasizing the guild's determination to protect the theatrical ecosystem. Patry's concerns echo those of the broader sector, already weakened by declining attendance.
Marc-Olivier Sebbag, the FNCF's general delegate, highlights the heightened risks in today's competitive market. He notes that the landscape has evolved significantly since the Disney-Fox merger, with Netflix dominating the streaming market and Warner Bros. Discovery as a consolidated giant. Patry, a member of the Cannes Film Festival board, played a pivotal role in establishing a rule that mandated theatrical releases for films in competition, pushing Netflix out of the festival. This rule, however, faced resistance, and even Cinema United now shares concerns about safeguarding theatrical exhibition.
French exhibitors' worries extend beyond new U.S. tentpoles to Warner's extensive library of classics, which are vital for heritage screenings and youth education initiatives. Patry emphasizes Warner Bros.' generosity in allowing French cinemas to showcase iconic films, a tradition that may be at risk with Netflix's involvement. Despite these concerns, Pathé Cinéma's managing director, Laure de Boissard, remains optimistic, attributing it to Netflix's continued belief in the value of cinema in theaters.
De Boissard argues that Netflix's acquisition signals a strategic commitment to the theatrical business. She draws parallels to Disney's streaming-first phase, where the company paused theatrical releases before realizing the economic benefits of maintaining theaters as a central part of its strategy. De Boissard's optimism is further bolstered by James Cameron's recent tribute to France's cinema ecosystem, emphasizing the nation's dedication to supporting the arts, which aligns with Patry's stance.
