Core Insights - The potential acquisition of Warner Bros. by Netflix raises concerns in the movie industry about the reduction of theatrical film sources [1][6] - Netflix has indicated it will honor Warner Bros.' existing theatrical release contracts if the acquisition is successful [2][6] - The deal would represent Netflix's largest acquisition to date, with bids for Warner Bros. due soon [5][6] Group 1: Industry Reactions - Shares of AMC Entertainment and Cinemark rose by 1.9% and 2.7% respectively, indicating a positive market reaction to the news [3] - The theater owners' trade association expressed ongoing concerns about Netflix's long-term commitment to theatrical releases, despite Netflix's agreement to honor existing contracts [8] Group 2: Strategic Shifts - Netflix has historically avoided theatrical releases but is now pivoting its strategy to make its bid for Warner Bros. more appealing [2][6] - Netflix co-CEO Ted Sarandos has previously described theaters as a declining business, emphasizing the priority of satisfying streaming customers [7]