Netflix CEO calls traditional theatrical window outdated for modern audiences

Ted Sarandos says the movie theater model is “outdated,” arguing most Americans prefer streaming over multiplex visits

Netflix co-CEO Ted Sarandos argued that the traditional movie theater model is “outdated,” emphasizing that most viewers now prefer watching films at home.

Speaking during a discussion with Time editor-in-chief Sam Jacobs at the Time100 Summit in New York, Sarandos addressed Hollywood’s shifting landscape, the decline of the global box office and why Netflix continues to grow despite industry contraction.

Sarandos said Netflix’s strength lies in being “a very consumer-focused company,” adding that audiences consistently show they prefer the convenience of streaming. Citing the global box office struggles, he suggested the data reflects audience sentiment: “What is the consumer trying to tell us? That they’d like to watch movies at home.”

Although Netflix owns two historic theaters — the Paris Theater in New York and the Bay Theater in Los Angeles — Sarandos clarified the company maintains them to preserve the theatrical “experience,” not to revive the broader theater business. He noted Netflix still provides limited theatrical runs to qualify films for awards, including titles such as Glass Onion and Emilia Pérez.

Sarandos argued that Hollywood remains “trapped” in preserving the traditional 45-day theatrical window, calling it “completely out of step” with how audiences consume movies today. For filmmakers who see theatrical exhibition as essential, Sarandos said that experience is now “an outdated concept” for most people, especially those who cannot easily access multiplexes.

He stressed that the decline of theaters does not concern him as long as great films continue to be made. As the entertainment industry transitions further into streaming dominance, Sarandos urged creators to “focus on the consumer” rather than industry nostalgia.