Amazon MGM’s Bold Strategy May Signal the Future for Netflix and WBD
When it seemed like the credits were rolling on theatrical releases for good, Amazon MGM is flipping the script, and it might just be the plot twist the entire industry—especially the newly-merged Netflix and Warner Bros. Discovery (WBD)—needs to see.
Amazon MGM’s Shocking Commitment to Theaters
During a panel at SXSW, Courtenay Valenti, the head of film at Amazon MGM Studios, dropped a bombshell that sent a ripple of hope through the industry. According to Deadline, Valenti said, “Sue Kroll and I spent 30-plus years at Warner Bros., and we’re deeply, deeply committed to theatrical personally. So it’s so exciting to be at a company … knowing that this company is committed to theatrical.”
She announced that the studio is planning to release 12 to 14 films in theaters next year, with a potential increase to 16 films annually by 2027. Let that sink in. A company built on digital disruption is now one of the most vocal champions for the magic of the multiplex. They’re not just talking the talk; they’re building out their own international distribution and marketing arm, a move that screams long-term investment. This isn’t just a token gesture for awards season; it’s a “real, significant and beyond exciting” financial and philosophical commitment to the theatrical model.
Will Netflix and WBD Get the Memo?
This brings us to the elephant in the room: the seismic merger of Netflix and Warner Bros. Discovery. The announcement sent shivers down the spine of the exhibition industry. Cinema United, the trade association representing theaters, issued a stark warning, calling the acquisition an “unprecedented threat.”
In a statement regarding the Netflix-WBD acquisition, Cinema United President and CEO Michael O’Leary laid out the stakes on the home site, “The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business. 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.”
Their fear is that Netflix, a company historically allergic to traditional theatrical windows, will gut WBD’s theatrical slate, turning blockbuster franchises into binge-worthy streaming content. It’s a valid concern. Netflix’s co-CEO Ted Sarandos has been clear about his disdain for long, exclusive theatrical windows, calling them anti-consumer. But Amazon MGM’s strategy presents a compelling counter-argument. It’s a hybrid model that respects both the theatrical experience and the streaming endgame.
Final Thoughts
The success or failure of Amazon MGM’s 2026 theatrical slate will be a crucial test case. If their films find success at the box office and then drive engagement on Prime Video, it will provide a clear, profitable roadmap for Netflix and WBD to follow. It proves you can have your cake and eat it too—that theatrical and streaming don’t have to be mortal enemies. They can be partners in a new, more dynamic ecosystem.
