Netflix CEO: Going to Theaters Outdated, Streaming Saves Hollywood

Netflix CEO Ted Sarandos has boldly claimed that the streaming giant is "saving Hollywood," asserting that the traditional theatergoing experience is becoming "an outmoded idea for most people." Speaking at the Time100 Summit, Sarandos defended Netflix's role in the industry, despite the exodus of production from Los Angeles, the shrinking theatrical window, and the declining quality of the cinema experience. He emphasized Netflix's consumer-centric approach, stating, "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 he expressed a personal fondness for the theater, he suggested that for the majority, the allure of the cinema is fading. This perspective aligns with Netflix's business model, which prioritizes streaming over traditional movie-going.

Hollywood's challenges are evident, with family films like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" sustaining the industry. Even Marvel movies, once guaranteed blockbusters, are now experiencing inconsistent success. The shift in viewing habits has been noted by actors like Willem Dafoe, who lamented the loss of the communal experience of cinema. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe remarked, highlighting the difficulty more challenging films face in capturing audiences' full attention at home.

Dafoe also missed the social aspect of cinema, where movies spark conversations and shared experiences. "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 amidst the rise of streaming. He acknowledged the enduring appeal of the cinema but stressed the importance of engaging younger audiences to ensure its longevity. "I think people still want to go out," Soderbergh said, emphasizing the unique experience of watching a film in a theater. He believes that the future of cinema hinges on attracting and retaining older audiences, and that this has little to do with the timing of home releases.