Netflix Chief Calls Theaters Outdated, Urges Change

Netflix CEO Ted Sarandos has asserted that the streaming platform is "rescuing Hollywood," and considers moviegoing "an outdated concept for most people."

During this week's Time100 Summit, Sarandos maintained that despite widespread production departures from Los Angeles, the severe shortening of theatrical release windows, the rapid decline of cinema quality from an audience standpoint, and underwhelming box office results for many films, Netflix stands as the industry's savior. "No, we're saving Hollywood," he clarified for the summit's audience, noting that the company is "highly consumer-oriented."

He continued: "We bring entertainment directly to you, in the format you prefer."

Sarandos also addressed the ongoing slump in box office revenue. "What message are audiences sending us?" he pondered aloud. "They prefer watching films from home." Notably, he expressed his personal fondness for cinema visits, while simultaneously downplaying their broader relevance. "I think it's an antiquated notion for the majority," he stated. "Though not for everyone."

It's hardly surprising that the head of the leading streaming service would hold such views. Promoting streaming over theater attendance aligns with the company's strategic interests.

Hollywood's challenges are widely recognized. Family-friendly releases like Inside Out 2 and video game adaptations such as the upcoming Minecraft film seem to sustain the industry, while even Marvel productions—once surefire billion-dollar hits—now deliver inconsistent results.

But has cinema attendance become passé? Last year, esteemed actor Willem Dafoe observed that viewing habits have shifted toward home streaming, as theaters shutter nationwide. "It's tragic, because home viewing doesn't command the same level of engagement," Dafoe remarked.

"More complex, challenging films struggle when viewers aren't fully immersed. That's significant. I mourn the loss of cinema's social role. You'd watch a film, discuss it over dinner, and spark broader conversations. Now couples browse endlessly before settling on something light, often switching between multiple titles before abandoning them entirely. Where has that cultural dialogue gone?"

In 2022, acclaimed director Steven Soderbergh reflected on cinema's future and how theatrical traditions might endure despite streaming dominance. He acknowledged that "the appeal remains," but stressed that the industry must persuade younger viewers to maintain cinema habits as they age.

Soderbergh, renowned for the Ocean's Eleven franchise and numerous Hollywood successes, explored how theaters and streaming platforms might sustainably coexist. He highlighted programming strategy and audience connection as crucial elements for preserving the cinematic experience.

"People still desire shared experiences," Soderbergh noted, recognizing the motivations behind theater visits. "Seeing films on the big screen retains its allure. It remains a compelling outing. Ultimately, our success hinges on encouraging mature audiences to keep attending [...] This transcends release window strategies."