Netflix CEO: Theaters Outmoded, Saving Hollywood

Netflix CEO Ted Sarandos has boldly claimed that the streaming giant is "saving Hollywood," positioning Netflix as the industry's savior amid a shifting landscape. During his appearance at the Time100 Summit, Sarandos addressed the exodus of production from Los Angeles, the shrinking theatrical window, the declining quality of the cinema-going experience, and the inconsistent box office performance of recent films. Despite these challenges, he firmly stated, "No, we're saving Hollywood," emphasizing Netflix's consumer-centric approach. "We deliver the program to you in a way you want to watch it," he added, underscoring the convenience and flexibility that streaming offers.

Sarandos also touched on the decline in box office sales, suggesting that consumer behavior is shifting towards home viewing. "What is the consumer trying to tell us? That they'd like to watch movies at home," he remarked. While expressing his personal fondness for the theater experience, he believes it's becoming outdated for the majority. "I believe it is an outmoded idea, for most people," he said, acknowledging that it's not a universal sentiment.

Given Sarandos's position at Netflix, it's understandable that he would advocate for streaming over traditional cinema-going. Hollywood's challenges are evident, with family films like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" helping to sustain the industry. Even Marvel movies, once guaranteed blockbusters, are now experiencing variable success.

The question of whether cinema-going is becoming outdated is a topic of debate. Last year, actor Willem Dafoe highlighted the shift towards home viewing, lamenting the loss of the communal experience that theaters offer. "Which is tragic, because the kind of attention that people give at home isn't the same," Dafoe noted. He expressed concern that more challenging films struggle to find an audience 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, 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 stressed the importance of engaging younger audiences to ensure its longevity. "I think people still want to go out," Soderbergh said, recognizing the allure of the theater as a destination. He emphasized the need for strategic programming and audience engagement to keep theaters relevant. "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," he explained, suggesting that the focus should be on the experience rather than the timing of releases.