Netflix CEO: Theaters Outdated, Saving Hollywood

Netflix CEO Ted Sarandos has boldly declared that the streaming giant is "saving Hollywood," positioning the service as the savior of the entertainment industry. At the Time100 Summit, Sarandos defended Netflix's role, despite the exodus of production from Los Angeles, the shrinking theatrical window, the declining quality of the movie-going experience, and inconsistent box office results for many films. "No, we’re saving Hollywood," he asserted, emphasizing that Netflix's focus is on delivering content in the way consumers want to watch it. "We deliver the program to you in a way you want to watch it," he added, reinforcing their consumer-centric approach.

Addressing the decline in cinema attendance, Sarandos questioned, "What is the consumer trying to tell us? That they’d like to watch movies at home." While he acknowledged his personal appreciation for the theater experience, he downplayed its overall relevance, stating, "I believe it is an outmoded idea, for most people. Not for everybody." These remarks align with Netflix's strategic interest in promoting streaming over traditional cinema-going.

Hollywood's challenges are evident, with films like "Inside Out 2" and "A Minecraft Movie" attempting to bolster the industry, while even reliable franchises like Marvel have become less predictable at the box office. The shift in consumer behavior towards home viewing has been noted by industry veterans. Last year, Willem Dafoe lamented the loss of the communal aspect of cinema, pointing out the difference in audience engagement between home and theater settings. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe remarked, highlighting the impact on more challenging films and the broader cultural discourse around movies.

In 2022, acclaimed director Steven Soderbergh shared his perspective on the future of movie theaters amidst the rise of streaming. He acknowledged the enduring appeal of the cinematic experience but stressed the importance of engaging younger audiences to sustain it. "There's still an appeal to seeing a movie in a movie theater. It's still a great destination," Soderbergh noted, suggesting that the future of theaters hinges on attracting and retaining older audiences. He emphasized that this challenge is not about the timing of releases but about the overall engagement and programming strategy.