Netflix CEOs Say They’ve Always Planned to Enter Theaters

Shifting Views on Theatrical Windows at Netflix: A Summary

This article details the evolving perspective of Netflix, and particularly Ted Sarandos, on theatrical releases. Here’s a breakdown of the key points:

* From Dismissive to Pragmatic: Sarandos has historically been critical of theatrical distribution, calling it “outmoded” (though he now clarifies he meant “outmoded for some“) and “inefficient.” He previously believed audiences didn’t care about theatrical windows.
* the Warner Bros. Deal as a Turning point: Netflix’s deal with Warner bros. – guaranteeing a 45-day theatrical window before streaming – signals a critically importent shift. Sarandos now states he wants to “win the box office.”
* Acknowledging Theatrical success: Netflix’s internal assessment revealed that some films do perform well in theaters, prompting a re-evaluation of their strategy.
* Business, Not ideology: Sarandos emphasizes that Netflix’s approach is driven by business realities, not a rigid ideology. He states they “re-evaluate things” as conditions change. He frames this as a natural evolution, saying “insights change.”
* Late to the Game?: Netflix executives acknowledge theaters are an “effective complement to the streaming model,” but claim they were previously focused on investing in other areas.
* the “Quarterly Theatrical Question”: the article points out the internal joke at Netflix about repeatedly being asked about theatrical releases, highlighting their past inconsistency on the topic.

In essence, the article portrays Netflix as moving from actively dismissing theatrical releases to cautiously embracing them as a possibly valuable component of their distribution strategy, driven by data and a desire for broader success. Sarandos’ statements demonstrate a willingness to adapt his views based on market realities and the potential benefits of a theatrical component.