Netflix Is 'Saving Hollywood,' CEO Considers Going to the Theater 'An Outmoded Idea for Most People'

At the Time100 Summit, Netflix CEO Ted Sarandos boldly claimed that the streaming giant is "saving Hollywood." He argued that despite the exodus of production from Los Angeles, the shrinking theatrical window, and the declining quality of the cinema experience, Netflix remains a savior for the industry. "No, we're saving Hollywood," Sarandos emphasized, positioning Netflix as a "very consumer-focused company" that delivers content in the most convenient way for viewers. "We deliver the program to you in a way you want to watch it," he stated.

Addressing the decline 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 While expressing his personal fondness for the theater experience, he suggested that it's becoming outdated for the majority. "I believe it is an outmoded idea, for most people," he said, though he acknowledged it's not true for everyone.

Given Netflix's vested interest in promoting streaming over traditional cinema, Sarandos's views align with the company's business model. Hollywood's challenges are evident, with films like "Inside Out 2" and "A Minecraft Movie" supporting the industry, while even Marvel movies no longer guarantee massive box office success.

The shift away from cinema-going has been noted by other industry figures as well. Last year, actor Willem Dafoe lamented the trend, saying that the way people consume films at home differs significantly from the cinema experience. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe remarked. He highlighted the social aspect of movie-watching, which is lost when viewers casually flip through movies at home. "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 ongoing appeal of cinema but stressed the importance of engaging younger audiences to sustain the industry. "I think people still want to go out," Soderbergh said, recognizing the allure of the 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]." He emphasized the need for thoughtful programming and engagement strategies to keep the cinema experience thriving alongside streaming services.