The Multiplex Association of India (MAI) has voiced strong concerns regarding Netflix's proposed acquisition of Warner Bros. Discovery, a deal valued at $82.7 billion. The MAI, representing cinema operators across the country, warns that this merger could significantly disrupt India's theatrical ecosystem. The association believes that consolidating a major studio under a streaming platform presents competitive and economic risks to India's theatrical market.
According to reports, Netflix and Warner Bros. Discovery reached a "definitive agreement" for the sale, which has received unanimous approval from both companies' boards. The transaction encompasses HBO, HBO Max, the Warner Bros. film and television studios, and DC Entertainment, signaling a dramatic restructuring within the entertainment industry. The deal is expected to close after Warner separates Discovery Global into a new, publicly traded company in the third quarter of 2026.
MAI President Kamal Gianchandani noted that Warner Bros. has historically been a critical content partner for Indian cinemas, consistently contributing major global releases and local titles that bolster the theatrical calendar. He stressed that cinemas in India function not only as entertainment hubs but also as key cultural and economic engines, supporting millions of jobs across production, distribution, exhibition, food and beverage, and related services.
Gianchandani cautioned that Netflix's track record offers little reassurance. The streaming giant has traditionally favored minimal theatrical releases and shorter windows, operating with a clear streaming-first strategy. The MAI argues that a merger of this scale risks reducing the volume of premium content available for theatrical release and could lead to substantially shortened—or even eliminated—theatrical windows. The association also fears the merger could lead to anti-competitive practices, particularly regarding theatrical release windows and content exclusivity.
The MAI emphasized that the Indian theatrical market thrives on choice, scale, and cultural diversity. The association believes that if Netflix continues its trend of limited theatrical releases, it could severely impact the flow of studio content to cinemas, ultimately diminishing consumer choice and revenue. MAI President Kamal Gianchandani stated that Netflix has consistently made it clear through its limited and highly restrictive approach to theatrical releases that it does not believe in the cinema-first model. If the acquisition proceeds, the risk is twofold: a meaningful reduction in high-quality content for cinemas, and the potential for shortened or non-existent theatrical windows.
The MAI further stated that the outcome would affect exhibitor revenues, reduce consumer options, and weaken the broader film industry infrastructure in India. The organization plans to raise these concerns with regulatory bodies both in India and globally.
According to film industry experts, Hollywood films contribute about 10-15% of India's total box office collections. A decade ago, this number was about half the current share, as Bollywood ruled then. However, with audience preferences changing, Bollywood movie makers and producers have struggled, forcing exhibitors to turn to regional-language and Hollywood content for footfalls and business.
Analysts believe the deal will strengthen Netflix's position and market share in the Indian over-the-top (OTT) market. One analyst said that the acquisition could make Netflix the platform with the strongest recall for movies, originals, and global TV content, and enable Netflix to boost its average revenue per user in a price-sensitive market like India by providing a broader content slate and an expanded catalog.
The MAI's strong stance reflects a growing tension between streaming-first strategies and traditional theatrical business models, a conflict that could reshape how audiences in India engage with global cinema.
