Netflix CEO: Going to Theaters 'Outmoded,' Saving Hollywood

Netflix CEO Ted Sarandos recently made bold claims at the Time100 Summit, asserting that the streaming giant is "saving Hollywood." Amidst concerns over the diminishing theatrical window, declining box office numbers, and the migration of production away from Los Angeles, Sarandos firmly positioned Netflix as a savior for the entertainment industry. He emphasized that Netflix is a "very consumer-focused company" dedicated to delivering content in the most convenient way possible for viewers. "We deliver the program to you in a way you want to watch it," he stated, underscoring the company's commitment to meeting consumer demands.

Addressing the ongoing decline in box office sales, Sarandos posed a rhetorical question to the audience: "What is the consumer trying to tell us? That they’d like to watch movies at home." While expressing a personal fondness for the theater experience, he suggested that for most people, the traditional concept of theatergoing is becoming "an outmoded idea." This perspective aligns with Netflix's business model, which prioritizes streaming over cinema attendance.

Hollywood's challenges are evident, with even once-reliable blockbusters like Marvel films experiencing inconsistent success. Family films like *Inside Out 2* and video game adaptations like *A Minecraft Movie* have become critical to sustaining the industry. The shift in viewing habits has been noted by actors like Willem Dafoe, who lamented the closure of cinemas and the different kind of attention viewers give at home. Dafoe highlighted the social aspect of movie-going, which he believes is being lost. "More difficult movies, more challenging movies can not do as well, when you don’t have an audience that’s really paying attention," he said, mourning the loss of communal discourse around films.

The debate over the future of movie theaters continues, with filmmaker Steven Soderbergh offering insights in 2022. He acknowledged the enduring appeal of the cinematic experience but stressed the importance of engaging younger audiences to ensure the longevity of theaters. Soderbergh noted that the allure of the cinema as a destination remains strong, yet it is crucial to attract and retain older audiences as well. He emphasized that the future of movie theaters hinges on effective programming and engagement strategies, rather than solely on the timing of theatrical releases versus streaming availability.