Why Netflix could be forced into the theatres

Netflix could soon push films into theatres as talent demands and Warner Bros. deal put pressure on the streamer

Netflix has dominated the streaming world for years, boasting more than 300 million subscribers and generating revenue that surpasses the global box office. Yet the company’s strategy of releasing movies primarily online may be under threat. A combination of talent demands, business opportunities, and potential acquisitions could finally push Netflix into a more meaningful theatrical presence.

CEO Ted Sarandos has long dismissed traditional theatres as outdated, using them mainly to qualify films for awards. However, earlier this year, ‘KPop Demon Hunters’ topped the box office months after its online release, demonstrating the potential value of theatrical distribution. A sci-fi project called ‘The Flood’ fell apart after director Zach Cregger requested a full theatrical release that Netflix would not approve.

Talent is increasingly moving away from Netflix over this limitation. Matt and Ross Duffer, creators of Stranger Things, have left for Paramount, which allows full theatrical releases, while Cregger has signed with Sony for a Resident Evil film. Big names want their movies on the big screen, and Netflix may have little choice but to adapt.

Recent developments suggest cracks in Netflix’s strategy. AMC Theatres and Netflix reached an agreement after years of negotiation, and the Stranger Things finale will get a theatrical rollout. Greta Gerwig’s upcoming Narnia film is also set for IMAX. Industry observers note that a potential acquisition of Warner Bros. would almost certainly force Netflix to commit to theatre releases to satisfy regulators concerned about the impact on the wider box office ecosystem.

Netflix is likely to approach theatres on its own terms, just as it adapted to ads with its ad-supported subscription plan in 2022. While it may not fully adopt the traditional 45-day theatrical window, the streamer appears poised to expand its presence in cinemas.

The question now is how Netflix balances its streaming dominance with theatrical expectations. The industry and audiences alike will be watching closely as the company navigates a potentially transformative moment in Hollywood.