Netflix, the world's largest streaming service, has long been at odds with the traditional movie theater business. However, in a surprise move, Netflix co-CEO Ted Sarandos has announced that his company will commit to 45-day theatrical release windows for movies from its upcoming releases.
Sarandos, who was speaking exclusively to The New York Times, emphasized that Netflix's goal is not to disrupt the theatrical distribution engine, which produces billions of dollars in revenue each year. Instead, he believes that there is value in the movie theater experience and wants his company to be competitive by winning opening weekend box office.
This move marks a significant shift for Netflix, as it had previously hinted at potentially fast-tracking its own features while leaving theaters behind. However, Sarandos clarified that these comments were taken out of context and were intended to highlight how going to the movies isn't feasible for everyone in certain areas.
The commitment to 45-day theatrical release windows is seen as a nod to industry experts who have advocated for this new baseline for continued success. Nevertheless, critics argue that this move could still harm the movie theater business as a whole, particularly if audiences begin to see it as an alternative to waiting for movies to become available on Netflix.
As Sarandos himself noted, some towns may not even have movie theaters due to low population density. In such cases, streaming becomes the only viable option. However, this raises questions about whether Netflix's new strategy will ultimately benefit or harm the industry.
With its commitment to 45-day theatrical release windows, Netflix is taking a bold step into the traditional movie theater business. Whether it will prove to be a winning formula remains to be seen.
Sarandos, who was speaking exclusively to The New York Times, emphasized that Netflix's goal is not to disrupt the theatrical distribution engine, which produces billions of dollars in revenue each year. Instead, he believes that there is value in the movie theater experience and wants his company to be competitive by winning opening weekend box office.
This move marks a significant shift for Netflix, as it had previously hinted at potentially fast-tracking its own features while leaving theaters behind. However, Sarandos clarified that these comments were taken out of context and were intended to highlight how going to the movies isn't feasible for everyone in certain areas.
The commitment to 45-day theatrical release windows is seen as a nod to industry experts who have advocated for this new baseline for continued success. Nevertheless, critics argue that this move could still harm the movie theater business as a whole, particularly if audiences begin to see it as an alternative to waiting for movies to become available on Netflix.
As Sarandos himself noted, some towns may not even have movie theaters due to low population density. In such cases, streaming becomes the only viable option. However, this raises questions about whether Netflix's new strategy will ultimately benefit or harm the industry.
With its commitment to 45-day theatrical release windows, Netflix is taking a bold step into the traditional movie theater business. Whether it will prove to be a winning formula remains to be seen.