Netflix CEO: Going to Theaters Outmoded, Saving Hollywood

Netflix CEO Ted Sarandos boldly claimed at the Time100 Summit that the streaming giant is "saving Hollywood," despite the industry facing challenges such as production shifts away from Los Angeles, shrinking theatrical windows, declining cinema experiences, and fluctuating box office performances. Sarandos emphasized Netflix's role as a "very consumer-focused company," asserting that it delivers content in the way audiences prefer to watch it.

Addressing the decline in theater attendance, Sarandos questioned what consumers are signaling with their preferences, suggesting that people increasingly favor watching movies at home. While he admitted his personal enjoyment of cinema outings, he also labeled the concept as "an outmoded idea, for most people," though he acknowledged it's not true for everyone.

Given his position, Sarandos's views align with Netflix's interests in promoting streaming over traditional cinema experiences. Hollywood has indeed been grappling with challenges, with family films like "Inside Out 2" and adaptations such as "A Minecraft Movie" helping to sustain the industry, even as Marvel's once-reliable blockbusters see varied success.

The shift in viewing habits has sparked a debate about the relevance of movie theaters. Actor Willem Dafoe lamented the closure of cinemas and noted a change in how people consume films at home, which he believes leads to less focused viewing. He emphasized the loss of the social aspect of cinema-going, where discussions and shared experiences enrich the viewing process, something he feels is missing in the at-home, distracted environment.

Filmmaker Steven Soderbergh, known for hits like the "Ocean's Eleven" series, offered insights into the future of movie theaters in the streaming era. He acknowledged the enduring appeal of the cinematic experience but stressed the importance of engaging younger audiences and maintaining the interest of older viewers to keep theaters viable. Soderbergh suggested that the coexistence of theaters and streaming services hinges on thoughtful programming and engagement strategies, rather than just the timing of releases.