Netflix CEO: Going to Theaters Outdated, 'Saving Hollywood'

Netflix CEO Ted Sarandos has boldly stated that the streaming giant is "saving Hollywood," and he views the traditional experience of going to the cinema as "an outmoded idea for most people." Speaking at the Time100 Summit, Sarandos defended Netflix's role in the industry, despite the exodus of production from Los Angeles, the shrinking theatrical window, and the declining quality of the movie-going experience. He emphasized Netflix's consumer-centric approach, saying, "We deliver the program to you in a way you want to watch it."

Addressing the decline 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 While he expressed a personal fondness for the theater experience, he believes it's becoming outdated for the majority. This perspective aligns with Netflix's business model, which prioritizes 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" helping to sustain the industry. Even Marvel movies, once guaranteed blockbusters, are now experiencing inconsistent success.

The shift away from theaters has been noted by other industry figures as well. Last year, actor Willem Dafoe lamented the closure of cinemas and the changing way people consume films at home. He highlighted the loss of the social aspect of movie-going, which he believes is crucial for fostering deeper engagement with more challenging films. "More difficult movies, more challenging movies can not do as well, when you don’t have an audience that’s really paying attention," Dafoe remarked, missing the communal experience of discussing films after a screening.

In 2022, filmmaker Steven Soderbergh shared his views on the future of movie theaters in the streaming era. He acknowledged the enduring appeal of the cinema experience but stressed the importance of attracting younger audiences to ensure its survival. Soderbergh emphasized the need for thoughtful programming and engagement strategies to keep theaters relevant. "I think people still want to go out," he said, underscoring the value of the movie theater as a destination and the importance of maintaining older audiences' interest.