Netflix CEO: Going to Theaters is Outdated, Saving Hollywood

Netflix CEO Ted Sarandos has boldly claimed that the streaming giant is "saving Hollywood," emphasizing that theatergoing is "an outmoded idea for most people." Speaking at the Time100 Summit, Sarandos argued that despite the exodus of production from Los Angeles, the shrinking theatrical window, and declining audience experiences, Netflix remains the savior of the industry. "No, we're saving Hollywood," he declared, highlighting the company's consumer-centric approach. "We deliver the program to you in a way you want to watch it."

Addressing the slump in box office sales, Sarandos posed a rhetorical question: "What is the consumer trying to tell us? That they'd like to watch movies at home." While expressing his personal fondness for the theater, he suggested that the traditional cinema experience is becoming outdated for the majority. "I believe it is an outmoded idea, for most people," he stated, "Not for everybody."

It's no surprise that the CEO of the leading streaming service would champion the shift from theaters to home viewing, as it aligns with Netflix's business model. Hollywood's challenges are evident, with films like "Inside Out 2" and "A Minecraft Movie" attempting to bolster the industry, while even Marvel's once-reliable blockbusters face uncertainty.

The question remains: Is attending the cinema now an old-fashioned concept? Veteran actor Willem Dafoe lamented the trend towards home viewing, pointing out the difference in attention given to films at home versus in theaters. "Which is tragic, because the kind of attention that people give at home isn't the same," Dafoe remarked. He expressed concern over the impact on more challenging films, which struggle to engage audiences without the focused attention of a theater setting. "More difficult movies, more challenging movies can not do as well, when you don't have an audience that's really paying attention. That's a big thing. I miss the social thing of where movies fit in the world. You go see a movie, you go out to dinner, you talk about it later, and that spreads out. People now go home, they say, 'Hey, honey, let's watch something stupid tonight,' and they flip through and they watch five minutes of 10 movies, and they say, forget it, let's go to bed. Where's that discourse found?"

In 2022, acclaimed filmmaker Steven Soderbergh shared insights on the future of movie theaters amidst the rise of streaming. He acknowledged the ongoing appeal of cinema but stressed the importance of engaging younger audiences as they age. "I think people still want to go out," Soderbergh noted, recognizing the allure of the movie theater experience. "There's still an appeal to seeing a movie in a movie theater. It's still a great destination. And it really depends, I think, on our ability to attract, to convince the older audiences to continue to come out [...] It has nothing to do with windowing [the term for the amount of time left between theater and home releases]."

Soderbergh, known for hits like the "Ocean's Eleven" series, emphasized the need for thoughtful programming and engagement strategies to sustain the cinema-going tradition. He believes that theaters and streaming services can coexist harmoniously, provided the industry focuses on these critical aspects.