How DC Films Will Be Affected By The Warner Bros. Studio Split

The Hollywood community woke up Monday morning to learn that Warner Bros., one of the last remaining powerhouse movie studios from the bygone era of entertainment, was undergoing a significant change. Beginning in 2026, the media conglomerate Warner Bros. Discovery will be divided into two publicly traded companies, one focused on streaming and content, and one dedicated to television. The move, per WB Discovery President and CEO David Zaslav in a statement, is meant to empower each individual company with “the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape.”

For some, the move was predictable, and inevitable. The words “today’s evolving landscape” reflect the challenges every major Hollywood studio faces as audience members consider all of their entertainment options. The theatrical experience remains unique for many–reflected in the box office success of movies like Sinners and Minecraft–but streaming is well on its way to becoming king. Studios like Warner Bros., Universal and Disney need to consider the playing field of streaming as they project into the future. Not to the detriment of film. But in a way that encompasses filmmaking and storytelling into the model of a healthy streaming platform. And that’s a big part of the reason why I believe the fledgling DC Films is well positioned to benefit from the new separation of the WB entities.

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DC Films Focuses On Both Film And Television

Back when James Gunn revealed that he and his creative partner Peter Safran were taking over DC Films and building a brand new DC Universe (or DCU), television always was part of their plan. The day that Gunn laid out a 10-year map for the DCU, it included films like the anticipated Superman–which opens in theaters on July 11 and drastically expands this world–as well as television shows constructed around the Green Lantern Corps, Wonder Woman and the Amazonians, and the continuation of Peacemaker with John Cena in the lead role. It was as if Gunn and Safran understood that Warner Bros. Discovery came with the streaming service of HBO Max (then Max, then back to HBO Max), and incorporated that portal into their overall storytelling.

Gunn and Safran called their 10-year plan of DC storytelling Gods & Monsters. And they kicked off their universe with a team of monsters known as the Creature Commandos, again a property that was conceived as a television series. We’re not sure yet what the overall storytelling arc for Gods and Monsters will be, though it has been indicated that the upcoming Lanterns show will play a significant part in unveiling what the threat of the narrative will be.

But Gunn, in his planning stages, spread his story across both platforms of film and television, while also leaving himself creative opportunities to branch away from the narrative track to tell a story that presents itself and sounds rewarding. This allegedly is what happened with Clayface. On its surface, a standalone film structured around the classic Batman villain sounds like an odd choice, especially if you are building a cinematic universe. But when Doctor Sleep director Mike Flanagan presented Gunn with a terrific script based on the character, Gunn greenlit the project, and we were off to the races.

This structure, at the root level of its storytelling, should fit nicely into the new corporate model that’s being established at Warner Bros. Separating its divisions and allowing one side to focus on film and streaming means that the same teams will drill down on both sides of the DCU in terms of production, marketing, and release. It theoretically brings everything under one umbrella. Or, as Zaslav phrased it in a memo that was obtained by The Hollywood Reporter:

“Three years ago, the very foundation of how, when, and where audiences engaged with content was undergoing fundamental change. As both organizations contemplated their futures, one truth became clear: to successfully adapt, transform, and lead in the entertainment industry of tomorrow, we needed to come together–to draw on each other’s strengths.”

Marvel Studios Proved How Difficult That Balance Can Be

It’s doubtful that Warner Bros. Discovery made this decision to split its company for creative reasons. Read through the rest of the statements provided by Zaslav and his executives, and you’ll hear about the company being “better aligned with shareholders.” But the way that DC Films has been positioned from its onset means that the film and television/streaming components of this developing universe can gel relatively seamlessly. And in a way that Marvel Studios never really figured out.

When Disney rolled out the Disney+ platform, it became a mandate for the studio’s top brands like Star Wars and Marvel to create content specifically for the streaming service. Some of those early shows made sense. WandaVision was a clever exploration of the Scarlet Witch’s grief following the death of Vision, and Loki found an interesting way to build off of an escape scene from Avengers: Endgame.

But too many of the shows rolled out onto Disney+ by Marvel Studios felt like asides that were used to introduce new characters (Moon Knight, She-Hulk, Echo) in stories that didn’t warrant the coverage. And as Marvel Studios spread itself too thin to meet the needs of the streaming side, the film aspect of the studio suffered. Admittedly, COVID delays and subsequent labor strikes also played a role in the decline of film quality at Marvel Studios. But Marvel Studios President Kevin Feige has admitted on the record that kowtowing to streaming hurt the overall output of Marvel Studios, and he’s doing what he can to reign that output in.

James Gunn saw this happening during his time at Marvel Studios. Heck, Gunn even contributed to the streaming output when he created a Holiday special for the Guardians of the Galaxy. And he likely brought that learned lesson to the DCU, figuring out at the concept stage what stories need to be movies, and what stories need to be longer streaming series. Gunn evolved. Marvel, too, is evolving, and will continue to evolve in Phase 6 and beyond.

So while the move announced by Warner Bros. today seems drastic, in hindsight, it feels like the pulling of a lever that has been preparing to be activated for a while now. Even at the studio levels at DC Films, where James Gunn and Peter Safran seem poised and ready to build on this shift and succeed moving forward.

Superman will open in theaters on July 25.