Netflix Boss Says Theatrical Release is “Inefficient" Way to Distribute $200M Movies

Subscriber-first streaming giant Netflix’s co-CEO Ted Sarandos doubled down on the company’s opposition to traditional theatrical releases for big-budget films during an earnings interview. Sarandos stated that the theatrical window is an “inefficient” way to distribute big-budget movies, especially those with production budgets over $200 million. While Netflix has had some success with its limited theatrical releases, such as Martin Scorsese’s “The Irishman” and Alfonso Cuarón’s “Roma,” the company has generally been reluctant to embrace the traditional theatrical model.

Sarandos’ comments come as Netflix faces increasing competition from traditional Hollywood studios and streaming rivals. Disney+, HBO Max, and Amazon Prime Video have all launched their own streaming services, and they have all adopted a more traditional approach to content distribution, including theatrical releases for big-budget films.

Netflix’s stance on theatrical releases is likely to be a major point of contention in the coming years. As streaming continues to grow in popularity, traditional Hollywood studios will need to find ways to adapt to the changing landscape.

The Future of Theatrical Releases

It is unclear what the future holds for theatrical releases. Some experts believe that streaming will eventually replace traditional movie theaters. Others believe that there will always be a place for theatrical releases, especially for big-budget blockbuster films. Only time will tell which side is correct.

In the meantime, Netflix’s comments are sure to spark a debate about the future of theatrical releases. It will be interesting to see how traditional Hollywood studios respond to Netflix’s challenge.