The outlook for theatrical movies is bleak, with the U.S. box office at $8.3 billion this year, below last year’s and far from pre-pandemic levels. Warner Bros., a major player in Hollywood, faces an uncertain future amid a bidding war between Netflix and Paramount Skydance, both of which may prioritize streaming over theaters. Investor confidence is waning, as evidenced by significant declines in Cinemark and AMC shares, due to concerns about Netflix’s theatrical commitments. Despite these challenges, any potential buyer of Warner Bros. must honor existing theatrical release contracts through 2029.
