The unexpected victory of Netflix in the bid to acquire Warner Bros Discovery, after submitting a $72 billion offer, dominated conversations this weekend at the Red Sea International Film Festival in Saudi Arabia. Just a week ago, reports suggested that the country itself intended to join a Paramount–Skydance–backed proposal to take over the iconic studio, but the outcome ultimately reinforced the streaming giant’s power and triggered alarm across much of the traditional film industry.

During a Red Sea Souk panel on “futureproofing” the industry, moderated by Library Pictures International CEO David Taghioff, several international executives shared their thoughts on the deal before diving into the panel’s main theme. Among them, Gaëtan Bruel, president of the French National Cinema Centre (CNC), made clear his concerns about the impact such consolidation could have on theatrical exhibition.

“I’ll speak from the theatrical point of view, because as you know there are thousands of exhibitors in the U.S., France and around the world expressing deep concern about the potential consequences of this acquisition,” said Bruel. “The fear they express is that it could reduce the number of films released in cinemas, which is exactly what happened when Disney acquired Fox.”

The French executive highlighted two aggravating factors. “The first is Netflix’s long-standing ambivalent relationship with cinema. The second is the dramatic decline in theatrical attendance. In 2019, we sold 8 billion tickets worldwide; last year it was fewer than 5 billion. That’s a 40% drop,” he warned.

Although he acknowledged that Netflix has started to appreciate theatrical releases — mainly as a promotional tool that provides “prestige”, “community engagement” and “media echo” — Bruel argued that this is not enough to save the ecosystem. “I wouldn’t say Netflix has given the theatrical business what it truly needs to navigate this moment of crisis: a minimal windowing system, minimal exclusivity,” he reproached. He pointed to a recent example: “When you release Frankenstein with just one week in U.S. theaters, how do you expect cinemas to survive right now?”

Bruel also referenced statements by Ted Sarandos after the acquisition was announced: “He said that over time windows will evolve to be more consumer-friendly. I think we should ask in return: what about making them more exhibitor-friendly, so they can keep existing and doing what they do? As we say in English, you can’t have your cake and eat it.” He concluded that the deal is “not good news in terms of the number of films” and that the slate will likely “be reduced and rationalized,” although it could push Netflix closer to the theatrical ecosystem.

In contrast, Julie La’Bassiere, chief strategy officer at the communications agency DDA, took a more optimistic view. “Netflix has always been a disruptor,” she recalled. “Out of disruption comes opportunity.” She said she hopes independent filmmakers will rise to the moment: “Be a little more resourceful, a little more creative, and provide the alternative voice to what will become this huge consolidated behemoth of content.” Though she admitted feeling “a little melancholic,” she said she preferred to focus on what the consolidation “might offer the independent film sector.” From a branding standpoint, she also saw advantages: “They will have a brand to associate themselves with — and in today’s market, where it’s so difficult to catch audiences’ attention, that could create an opportunity.”

Ali Jaafar, head of film at MBC Studios, urged caution amid excitement and concern. “We need to be careful… we don’t know when the deal will actually go through, or even if it will finally go through. There’s a long road ahead,” he said. Even so, he emphasized that a possible shift in access to HBO content — crucial for regional platforms like OSN in the Middle East — could boost local production. “If that content is no longer available, how can OSN maintain its premium offering? The answer may lie in original local content, which becomes an opportunity for Arab producers in film and TV,” he noted. “If a gap emerges, others may fill that space — and that could ultimately be a good thing if we can tell our own stories.”

From the sales and distribution side, there was also a call to protect audience habits. “Windows are important because cinemagoing is a matter of habit,” said Diane Ferrandez, senior vice-president of worldwide sales and distribution at AGC Studios. “Both models — streaming and theatrical — will have to coexist.”

Producer Isabella Sreyashii Sen, whose feature is screening in the festival’s New Visions competition, spoke of “opportunity and responsibility”: “Opportunity in the unprecedented reach this consolidation can bring; and responsibility in ensuring films continue to be nurtured as cultural legacies.”

Meanwhile, Netflix continues to make its presence felt in Jeddah: the company held a social event on Sunday, and regional executive Imane Mezher Gibran will take part in a Souk panel later this week on non-fiction storytelling. No one at the festival doubts that discussions about the future of the business are just beginning. But as Bruel insisted, if we truly believe in movie theaters, “we must think about what they need: not only variety of content, but also minimal windowing and minimal exclusivity.” Because, as he reminded in English, “you can’t have your cake and eat it” — “you can’t eat the cake and still have it.”