Netflix CEO: Going to Theaters is Outdated, 'Saving Hollywood'

Netflix CEO Ted Sarandos has boldly claimed that the streaming giant is "saving Hollywood," and he views traditional theatergoing as "an outmoded idea for most people." Speaking at the Time100 Summit, Sarandos argued that despite the exodus of production from Los Angeles, the shrinking theatrical window, the declining quality of the cinema experience, and fluctuating box office results, Netflix remains the savior of the film industry. "No, we’re saving Hollywood," he emphasized, highlighting 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."

Addressing the decline in box office sales, Sarandos rhetorically asked, "What is the consumer trying to tell us? That they’d like to watch movies at home." While he expressed personal fondness for the theater experience, he maintained that it is becoming outdated for the majority of viewers. "I believe it is an outmoded idea, for most people," he stated, though he acknowledged it's not a universal sentiment.

These views are not surprising given Netflix's vested interest in promoting streaming over traditional cinema visits. Hollywood's challenges are evident, with family films like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" buoying the industry, while even Marvel movies, once guaranteed to hit the billion-dollar mark, now experience inconsistent success.

The question remains whether cinema-going is becoming obsolete. Last year, actor Willem Dafoe commented on the shift towards home viewing, lamenting the closure of theaters. "Which is tragic, because the kind of attention that people give at home isn’t the same," Dafoe said. He emphasized the importance of the communal experience of cinema, where movies spark conversations and social interactions. "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 services. He acknowledged the enduring appeal of the cinema experience but stressed the importance of engaging younger audiences to sustain it. "I think people still want to go out," Soderbergh said, emphasizing the allure of movie theaters as a destination. He believes that the industry's future hinges on its ability to attract and retain older audiences as they age. "There's still an appeal to seeing a movie in a movie theater. It's still a great destination. And it really depends, I think, on our ability to attract, to convince the older audiences to continue to come out [...] It has nothing to do with windowing," he noted, referring to the time gap between theatrical and home releases.