Amidst Closed Economy Uncertainty, Warner Bros. Commits To Theatrical Releases

The COVID-19 crisis is shuttering theaters for the indefinite future, creating considerable worry across the entertainment industry regarding what to expect for theatrical distribution. Various studios’ future strategies are correspondingly complicated and subject to wide debate among analysts, but top Warner Bros. executives wanted to eliminate all doubt on Wednesday: they’re committed to the theatrical experience.

In a statement to THR, Warner Bros. CEO Ann Sarnoff confirmed that priority, stating:

“We are committed to — and are excited about — releasing Tenet in theaters this summer or whenever theaters reopen. We remain supportive of the theatrical experience and our exhibition partners, and are confident that our tentpole titles, including Tenet and Wonder Woman 1984, are exactly the type of films that will have people eager to return to theaters.”

The confirmation comes as a clarification, following up comments in an investor call earlier in the day from WarnerMedia CEO John Stankey. Stankey addressed COVID-19 and its impact on the industry as well as their strategy moving forward.

“This experience will change many things, including customer behaviors and expectations. We’re evaluating our product distribution strategy, re-looking at volumes and the required support levels we need in a down economy,” Stankey stated. “We’re rethinking our theatrical model and looking for ways to accelerate efforts that are consistent with the rapid changes in consumer behavior from the pandemic. Now our focus is on defining and leveraging the new normal across all of our operations.”

The comment and clarification emerge from Warner Bros.’ continued attempts to adjust their strategy and expectations in a changing industry. Earlier in the week it was announced that Warner Bros.’ own streaming service, HBO Max, will launch May 27th. In preparation, the studio has announced a variety of original series and even has announced an independent film production label, Warner Max, to produce mid-budget films exclusively for the streaming platform (once production can resume, of course). Add to this the Tuesday announcement that the forthcoming film Scoob! will be available for rental on its original theatrical release date of May 15th, forgoing theatrical release entirely, and it makes sense that investors and analysts are seeking clarification around the studio’s plans.

The hope for major studios is that theaters will be able to open up again by June, with Christopher Nolan’s Tenet still set to premiere on July 17th and Disney
DIS
’s Mulan to premiere July 24th. The Trump Administration’s ‘Opening Up America Again’ plan, announced last Thursday, would advocate a proposed phased approach to reopening various industries that would be implementable based on the discretion of state governments. Under this plan, the re-opening of ‘large venues’ like movie theaters would be in the first phase as long as ‘strict physical distancing protocols’ were observed. The viability of this plan, as well as the possibility to open theaters, obviously hinges on the success of current social distancing protocols to quell virus spread as well as on states’ individual policies.

With so much uncertainty about the progress of the fight against COVID-19, the success of individual state strategies, and the viability of reopening theaters in the near future, it’s impossible to predict what investors, studios, and the moviegoing public can expect for future theatrical release windows. The balancing act for major studios is to weigh the viability of home VOD releases (via rental or streaming) versus holding out for a theatrical release that will happen at an unknown time. For now, Warner Bros. will both champion it’s highly anticipated forthcoming streaming service and reiterate it’s commitment to the theatrical experience—how they and other studios balance these dual commitments is something only time will tell.