Netflix CEO: Theaters Outdated, Saving Hollywood

Netflix CEO Ted Sarandos has confidently stated that the streaming giant is "saving Hollywood," positioning Netflix as a savior amidst the shifting landscape of the entertainment industry. Speaking at the Time100 Summit, Sarandos defended Netflix's role despite the exodus of production from Los Angeles, the shrinking theatrical window, and the declining quality of the movie-going experience. He emphasized Netflix's consumer-centric approach, saying, "We deliver the program to you in a way you want to watch it."

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 While expressing his personal fondness for theaters, he suggested that the traditional cinema experience is becoming outdated for the majority. "I believe it is an outmoded idea, for most people," he remarked, acknowledging exceptions to this view.

Given Sarandos's role at Netflix, it's understandable that he champions streaming over traditional cinema-going, aligning with the company's business interests. Hollywood's challenges are evident, with family films like "Inside Out 2" and adaptations such as "A Minecraft Movie" sustaining the industry, while even Marvel's once-reliable blockbusters now face uncertainties.

The debate on the relevance of theaters continues. Last year, actor Willem Dafoe lamented the shift towards home viewing, highlighting the loss of a communal experience. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe said. He stressed the importance of cinema as a social activity, fostering discussions and connections that are often lost in the home environment.

In 2022, filmmaker Steven Soderbergh shared his perspective on the future of movie theaters, acknowledging their enduring appeal. He believes that the key to sustaining theaters lies in engaging younger audiences and convincing them to maintain the habit of cinema-going as they age. Soderbergh emphasized the social aspect of movie theaters, saying, "There's still an appeal to seeing a movie in a movie theater. It's still a great destination." He noted that the future of theaters hinges on attracting older audiences and enhancing programming and engagement, rather than solely focusing on the timing of releases between theaters and streaming platforms.