Netflix CEO: Theater Visits Outdated, Saving Hollywood

Netflix CEO Ted Sarandos has boldly claimed that the streaming giant is "saving Hollywood," amidst a backdrop of shifting industry dynamics. At the Time100 Summit, Sarandos argued that despite the exodus of production from Los Angeles, the shrinking theatrical window, and declining box office numbers, Netflix remains the savior of the entertainment industry. "No, we're saving Hollywood," he asserted, emphasizing the company's consumer-centric approach. "We deliver the program to you in a way you want to watch it."

Addressing the decline in cinema attendance, Sarandos questioned the consumer sentiment: "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 While expressing his personal fondness for the theater-going experience, he believes it's becoming outdated for most people. "I believe it is an outmoded idea, for most people," he stated, acknowledging that this view does not apply universally.

Given Netflix's vested interest in promoting streaming over traditional cinema visits, Sarandos's stance is unsurprising. Hollywood's challenges are evident, with family films like "Inside Out 2" and adaptations such as "A Minecraft Movie" bolstering the industry, even as Marvel movies, once surefire box office hits, experience variable success.

The notion that cinema-going is becoming outdated has been echoed by others in the industry. Last year, acclaimed actor Willem Dafoe lamented the shift towards home viewing, calling it tragic due to the differing levels of engagement 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," Dafoe remarked, missing the social aspect of cinema outings and the subsequent discussions they inspire.

In 2022, renowned filmmaker Steven Soderbergh shared insights on the future of movie theaters, suggesting that while there is still an appeal to the cinematic experience, the industry must focus on engaging younger audiences to sustain theater attendance as they age. "I think people still want to go out," Soderbergh noted, emphasizing the allure of movie theaters as a destination and the importance of programming and engagement in maintaining this appeal. He stressed that the future of cinema hinges not on the timing of releases but on the industry's ability to keep older audiences coming back.