Netflix CEO Ted Sarandos Says Movie Theater Model Is ‘Outdated’: ‘Most of the Country’ Cannot ‘Walk to a Multiplex’

by

Ted Sarandos‘ latest interview started with a softball question: “Have you destroyed Hollywood?”

“No, we’re saving Hollywood,” the Netflix co-CEO replied with a smile.

On a Wednesday in New York City, Netflix CEO Ted Sarandos conversed with Sam Jacobs, editor-in-chief of Time magazine, during the Time100 Summit. They delved straight into the challenges confronting Hollywood and why Netflix is thriving despite reduced production, diminishing box office receipts, and a contracting industry.

On a Wednesday in New York City, Ted Sarandos, CEO of Netflix, had a quick chat with Time magazine’s editor-in-chief, Sam Jacobs, at the Time100 Summit. They promptly started discussing Hollywood’s problems and why Netflix is managing to prosper amidst production cuts, shrinking ticket sales, and an industry in decline.

I work for Netflix, a company deeply committed to our customers’ preferences. It’s essential to us that we present the content in a manner that suits your viewing habits.

Speaking about the struggling worldwide cinema earnings, Sarandos remarked, “What’s the message here? What is the audience indicating? They prefer watching movies at home, it seems. The studios and cinemas are arguing over maintaining the 45-day window, which doesn’t align with the consumer’s enjoyment of a movie experience.

Netflix hasn’t entirely abandoned the cinema industry, as they own the Bay Theater in Los Angeles and the Paris Theater in New York. Ted Sarandos, Netflix’s chief content officer, stated that they “rescued” these theaters from turning into a Walgreens pharmacy. He clarified that Netflix didn’t save them to preserve the cinema business itself, but rather to protect and enhance the movie-going experience.

Netflix, similarly, needs to provide limited cinema screenings for movies aiming at award recognition, like the upcoming sequel of “Knives Out,” titled “Glass Onion” in 2022, and “Emilia Pérez” scheduled for release in 2024.

Sarandos mentioned that our custom-made films require some qualification for the Oscars. This means they need to be shown in theaters for a while, which helps with publicity. However, he advises every director we collaborate with to prioritize the audience and the fans. Make a film they’ll adore, and their appreciation will be your reward.

Sarandos further commented, “We’re in a phase of change,” expressing that previously, there was a common mindset of, “I want to create films for large screens and have audiences who are not familiar with me watch them. I want these movies to play in theaters for two months, fill the seats with emotional reactions and sold-out shows… However, this traditional approach seems outdated now.

Ted Sarandos was questioned about whether the intention of filmmakers to create movies meant for “cinema theaters, for the shared experience” is considered an “outdated concept.” In his response, he suggested, “I believe it is — for many people, not everyone. If you’re fortunate enough to reside in areas like Manhattan and can easily access a multiplex to watch a movie, that’s wonderful. However, most of the country doesn’t have this luxury.

Sarandos emphasized his fondness for cinemas, yet admitted that their deterioration doesn’t faze him. What truly bothers him is the idea of a world where fewer exceptional films are being produced.

He advised Hollywood against becoming “stuck” on requiring audiences to watch movies in cinemas, as this is what the film industry prefers. Rather, for the betterment of the entertainment sector, Hollywood should adjust to how viewers prefer to experience films, according to Sarandos’ point of view.

In the course of their 15-minute conversation, Sarandos expressed his views on whether Donald Trump’s economic policies might favor Netflix (he was uncertain), and if he’d rather hold a future position at “Saturday Night Live” or Disney. Regarding the former, he responded promptly, but when asked about who should succeed Bob Iger at Disney, he admitted he had no idea.

In summary, Jacobs referred back to a statement made by Jeff Bewkes, former CEO of Time Warner in 2010, who considered Netflix as insignificant in the entertainment industry. He likened Netflix to the Albanian army trying to conquer the world, implying it was an unlikely scenario, according to an interview with The New York Times.

In response to a hypothetical question about how he’d respond to Bewkes in 2025, Sarandos jokingly suggested, “I’d respond in Albanian if I knew how.

Read More

2025-04-24 19:18