Part 11/13:
Some analysts, including myself, initially believed that Netflix’s sprawling acquisition was an attempt to eliminate cinemas altogether—given their digital-first approach. However, financial reasoning contradicts this:
The massive expenditure far exceeds the combined market cap of North America’s largest theater chains.
Anti-competition laws no longer prevent studio ownership of theaters.
If the goal was to destroy theaters, less costly methods would suffice.
Instead, the evidence suggests that Netflix is looking to adapt, integrating Warner Brothers’ traditional film operations into its streaming ecosystem. The company appears to be seeking a model where theatrical releases complement, rather than compete purely with, its digital platform.