102-Year-Old Studio Becomes Acquisition Target

Since late 2025, Netflix's attempt to acquire Warner Bros. Discovery assets has reignited debate about the future of the film industry. If the acquisition succeeds, Netflix would gain control of the 102-year-old Warner Bros. studio, HBO, and an extensive content library.

This acquisition attempt has drawn attention not simply as another corporate M&A deal, but because it could shake the foundation of the film industry: the theatrical window. According to related reports, Netflix plans to dramatically shorten the theatrical window for some major releases to approximately 17 days.

Changing Audience Movie Consumption Patterns

During a roundtable discussion held by Chinese media outlet Sina Finance, participants shared examples of dramatically decreased theater attendance in recent years. One participant revealed that their annual viewings dropped from over 200 films in 2019 to under 100 after the pandemic.

Changes in theater usage patterns are also evident. Movie-going, once a routine leisure activity, has now become "a backup option when there are no other choices" or a social activity during holidays. In China particularly, the phenomenon of movie attendance concentrating during the Spring Festival (Chunjie) holiday period has intensified, with some regional theater managers even saying "we live off one month of Spring Festival for the whole year."

One participant with study experience in Hong Kong pointed out differences in theater culture between mainland China and Hong Kong. While Hong Kong has established a mature theater culture with high fines for illegal filming, strict viewing etiquette, and director Q&A screenings, mainland regions frequently experience degraded viewing experiences due to mobile phone use and talking during screenings.

Structural Crisis in the Theater Industry

China has the world's largest number of screens, yet trails the North American market in actual box office revenue. This reveals a structural contradiction of oversupply and content shortage. In 2025, China saw 1,065 new theaters open while 740 closed—a closure figure higher than even 2020 during the pandemic's peak.

Theater growth rates have plummeted from double digits in the past to just 1% in 2025. Mainland theaters, typically located on upper floors of shopping malls with poor accessibility, combined with ticket prices exceeding streaming service monthly subscription fees, have become factors driving audiences away from theaters.

An interesting phenomenon is Hong Kong residents traveling north to watch movies. As Hong Kong theaters close one after another, some Hong Kong residents visit mainland theaters in Guangdong Province, attracted by seats with massage functions, couple seats, karaoke facilities, and lower ticket prices.

Changes and Concerns in Content Production Methods

Roundtable participants expressed concern about the blurring boundaries between streaming platform content production and traditional filmmaking. The season 5 finale of Netflix's signature series Stranger Things exceeded 2 hours in runtime, essentially equivalent to a feature film.

Traditional American dramas adopted a seasonal format allowing character and story adjustments based on ratings during broadcast. A representative example is how Amy's character in The Big Bang Theory evolved from a supporting role to protagonist Sheldon's spouse due to positive audience response.

However, Netflix's binge-release model eliminates this flexibility. Some fans dissatisfied with the Stranger Things season 5 ending spread conspiracy theories that "episodes 5-8 were actually the villain's fantasy" and anticipated a ninth episode release. One participant noted that "the Duffer Brothers [series creators] must be losing sleep," expressing concern that streaming platforms' low margin for error could make future content more conservative and bland.

What Future for Theaters? [AI Analysis]

Netflix's Warner Bros. acquisition attempt signals more than a simple corporate merger—it heralds a restructuring of the film industry ecosystem. Shortened theatrical windows offer studios the advantage of faster production cost recovery, but threaten theater operators' survival.

Complete theater extinction is unlikely. Major blockbusters and special effects-heavy films still require the immersion of large screens, and some audience segments view theater attendance as both a cultural activity and social experience. However, theaters' role will likely shrink from "first venue for all films" to "premium experience space for specific film types."

For the theater industry to survive, providing differentiated experiences will be essential. Beyond simply screening films, theaters must create value that streaming cannot replicate through audience participation events, director/actor Q&A screenings, and premium amenities. Hong Kong residents' attraction to mainland theaters' additional facilities demonstrates the potential of such strategies.

In content production, dual-track strategies for theatrical and streaming content will likely become more pronounced. Big-budget blockbusters will maintain theatrical-first releases, while low-to-mid-budget films and series will increasingly launch as streaming exclusives. This double-edged sword expands audience choice while potentially reducing theatrical opportunities for diverse mid-budget films.