Netflix CEO: Theater Visits Outdated, Saving Hollywood

At the Time100 Summit, Netflix CEO Ted Sarandos boldly claimed that the streaming giant is "saving Hollywood," despite the industry's ongoing challenges. He argued that Netflix's focus on delivering content directly to consumers in their preferred format positions the company as a savior amidst the shifting landscape of film production and consumption. Sarandos highlighted the move away from traditional theatrical releases, pointing out the downsizing of the theatrical window and the declining quality of the movie-going experience as reasons why Netflix's model is superior.

Sarandos emphasized Netflix's consumer-centric approach, stating, "We deliver the program to you in a way you want to watch it." He also addressed the downturn in box office sales, suggesting that audiences are signaling a preference for watching movies at home. While Sarandos expressed personal fondness for theatergoing, he maintained that it is "an outmoded idea for most people," though not for everyone.

The struggles of Hollywood are well-documented, with family movies like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" now propping up the industry. Even Marvel films, once guaranteed blockbusters, are experiencing inconsistent box office success. This shift in consumer behavior aligns with Sarandos' views on the future of entertainment consumption.

The debate over the relevance of movie theaters continues. Last year, actor Willem Dafoe lamented the closure of cinemas and the change in how people watch films at home. He noted the loss of the social experience that comes with going to the cinema, discussing films over dinner, and engaging in broader cultural discourse. Dafoe expressed concern that more challenging films suffer when audiences are not fully engaged at home, where distractions are plentiful.

In 2022, filmmaker Steven Soderbergh shared his perspective on the future of movie theaters in the streaming era. He acknowledged the enduring appeal of the cinema experience but emphasized the need to engage younger audiences to sustain it. Soderbergh stressed the importance of programming and audience engagement in maintaining the allure of movie theaters, suggesting that the industry's future depends on its ability to attract and retain older audiences as well.