Aussie cinema operator EVT faces pressure from Netflix-Warner Bros deal, Morningstar says

Morningstar says Netflix NFLX.O pursuing Warner Bros WBD.O takeover has implications for cinema operators, like Australia's EVT EVT.AX

Adds Netflix isn't pursuing WBD to make movies for cinemas; notes it's very unlikely Netflix will commit to releasing as many new films via cinemas

Flags EVT's entertainment unit revenue is hostage to quality, quantity of films; adds no good films from Hollywood, no avenues to upsell high-margin peripherals to movie-goers

Says competing offer from Paramount Skydance PSKY.O, regulatory and political hurdles, opposition from creative community creating uncertainty around Netflix's bid

Keeps EVT's fair value estimate at A$13.30

EVT last up 0.2%, taking YTD gains to 21%