Netflix CEO: Theaters Outdated, Saving Hollywood

At the recent Time100 Summit, Netflix CEO Ted Sarandos boldly declared that Netflix is "saving Hollywood," despite the ongoing challenges the film industry faces. He highlighted the shift away from traditional theatergoing, suggesting that the idea of watching movies in cinemas is becoming outdated for the majority of viewers. "We deliver the program to you in a way you want to watch it," Sarandos stated, emphasizing Netflix's consumer-centric approach.

Sarandos addressed the declining box office numbers by questioning what consumers are signaling with their viewing habits. "What is the consumer trying to tell us? That they’d like to watch movies at home," he remarked. While he acknowledged his personal enjoyment of the theater experience, he maintained that it is "an outmoded idea, for most people."

The CEO's comments reflect Netflix's vested interest in promoting streaming over cinema attendance. Hollywood has indeed been struggling, with family films like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" supporting the industry, while even Marvel movies, previously guaranteed blockbusters, are now inconsistent at the box office.

The debate over the relevance of movie theaters continues. Last year, actor Willem Dafoe expressed concern over the shift towards home viewing, noting a change in how audiences engage with films. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe lamented, pointing out the loss of the social aspect of moviegoing. He highlighted the difficulty more challenging films face in capturing audiences' full attention at home, and the lack of communal discourse that traditionally follows a cinema visit.

In 2022, filmmaker Steven Soderbergh shared his perspective on the future of movie theaters amidst the rise of streaming. He believes there is still an appeal to the cinematic experience and stressed the importance of attracting younger audiences to ensure the longevity of theaters. Soderbergh identified programming and engagement as crucial elements in maintaining the allure of movie theaters, asserting that the future of cinema depends on convincing older audiences to continue their theater-going habits. "There's still an appeal to seeing a movie in a movie theater. It's still a great destination," he said, emphasizing that the issue is not solely about the timing of releases between theaters and home viewing.