Netflix CEO: Theaters Outdated, 'Saving Hollywood'

Netflix CEO Ted Sarandos has confidently stated that the streaming giant is "saving Hollywood," asserting that the traditional experience of going to the cinema is becoming outdated for most viewers. Speaking at the Time100 Summit, Sarandos defended Netflix's role amid the ongoing shifts in the entertainment industry, including the migration of production away from Los Angeles, the shrinking theatrical window, and declining audience satisfaction with the movie-going experience.

"No, we’re saving Hollywood," Sarandos declared to the audience, emphasizing Netflix's commitment to being a "very consumer-focused company." He further explained, "We deliver the program to you in a way you want to watch it," highlighting the convenience and accessibility of streaming services.

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 experience, he suggested that it is increasingly seen as "an outmoded idea, for most people."

Such views align with Netflix's business interests, which favor streaming over traditional cinema attendance. Hollywood's challenges are evident, with films like "Inside Out 2" and "A Minecraft Movie" helping to sustain the industry, while even Marvel's once-reliable blockbusters are experiencing fluctuating success.

The debate over the relevance of cinemas continues. Last year, actor Willem Dafoe lamented the shift in viewing habits, noting, "Which is tragic, because the kind of attention that people give at home isn’t the same." He emphasized the unique communal and social aspects of cinema-going, which he fears are being lost as people increasingly opt for home viewing. "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 enduring appeal of cinema but stressed the importance of engaging younger audiences to maintain the tradition. "I think people still want to go out," Soderbergh noted, pointing out the unique allure of the movie theater as a destination. He emphasized that the key to the survival of cinemas lies in "our ability to attract, to convince the older audiences to continue to come out." Soderbergh argued that this has little to do with the timing of theatrical versus home releases, but rather with the overall experience and programming that theaters can offer.