Has Netflix Changed Its Tune on Movie Theaters?

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Everyone knows Huntr/x, the incredibly popular K-pop group, is taking the world by storm. They’re not just chart-toppers who fill stadiums – they’re also heroes! As the stars of the hit Netflix movie KPop Demon Hunters, they fight shape-shifting monsters and protect Earth from the demon realm while delivering a unique blend of trap, EDM, and ‘Girl Crush’ energy. But even with their massive popularity – featuring members Mira, Zoey, and Rumi (voiced by Arden Cho) – Huntr/x couldn’t beat out Halloween festivities and the World Series when KPop Demon Hunters returned to theaters this fall.

Despite quickly selling out of its limited official merchandise and the movie’s catchy song “Golden” remaining number one on the Billboard Pop Airplay chart, the singalong version of the film didn’t perform quite as well as expected in theaters. Industry estimates (since Netflix doesn’t share its viewing or box office numbers) put the animated musical’s North American gross between $5.3 and $6 million across 2,890 theaters. This places it behind the new Colleen Hoover film adaptation and the second weekend of Black Phone 2.

It’s true that October was a difficult month for movies. Comscore reported the lowest revenue for the month in 27 years, with films like Dwayne Johnson’s The Smashing Machine and Disney’s Tron: Ares performing poorly. Plus, Netflix’s decision to put KPop Demon Hunters back in theaters just two months after its initial release is questionable, especially since it only made between $18 and $20 million the first time. One distribution insider told Deadline there’s likely no more money to be made from that strategy.

Anyone familiar with Netflix’s unpredictable approach to releasing movies in theaters understands that high box office numbers weren’t the main goal. In August, the film KPDH marked the first time Netflix released a movie in theaters after it had already been available for streaming on TVs and mobile devices for several months. Usually, Netflix shows its films in a limited number of theaters it owns – like the Egyptian in Los Angeles or the Paris Theater in New York – for short, week-long runs. This is done to generate buzz before the streaming release, increase the film’s visibility, or meet the requirements for Oscar consideration.

Despite a long-running disagreement about how quickly movies become available on streaming services, Netflix surprisingly teamed up with major theater chains like AMC and Regal this summer. This partnership came after fans created dances inspired by the film KPDH and shared them widely online. Both sides agreed to compromise, partly because there haven’t been many new major movie releases. This allowed KPDH to be shown in over 1,700 North American theaters in August, and a singalong version was planned for Halloween.

I was really fascinated to hear Netflix’s Ted Sarandos talk about KPop Demon Hunters recently. He framed their limited theatrical release not as a way to promote the movie, but almost as a thank you to the incredibly passionate fanbase who really propelled it into the cultural spotlight. He explained they sometimes put films in theaters for dedicated fans, or as part of their overall launch plan – things like getting buzz, marketing, and even qualifying for awards. But he specifically believes KPop Demon Hunters succeeded because it premiered on Netflix first, and the theatrical release was almost secondary.

Sarandos explained that releasing the film on Netflix actually supported their overall plan, as it helped build excitement and a fanbase. People were able to learn the songs, rewatch the movie as much as they liked, and create their own content inspired by KPop Demon Hunters. He noted that for certain movies, the experience of watching together and singing along is especially enjoyable, and they aimed to create a memorable night out for viewers.

It’s easy to overlook that Netflix leaders have previously criticized movie theaters. Reed Hastings, a former CEO, once claimed theaters were harming the film industry, and just recently, Ted Sarandos suggested the traditional theatrical experience is becoming obsolete. Netflix views each film’s theatrical release as unique to that specific project, but ultimately, all theatrical runs are designed to support the company’s primary goal: growing its streaming service. Of the approximately 30 films Netflix releases in theaters annually, every one serves this purpose.

Netflix is surprisingly embracing the traditional theatrical experience this awards season. Beyond releasing the film KPDH, they’re hosting special events for other titles. On December 31st and January 1st, 350 AMC theaters in the US and Canada will show the two-hour finale of Stranger Things – a move likely influenced by the show’s creators, the Duffer brothers, who wanted a theatrical release. Later this month, Netflix plans limited screenings of Noah Baumbach’s Jay Kelly, starring George Clooney, on 35mm film in historic cinemas around the globe, including locations in Brooklyn, Chicago, Mexico City, and Tokyo. Guillermo Del Toro’s Frankenstein also received a limited theatrical run – reportedly in 382 theaters for three weeks – before becoming available on the streaming service. Del Toro confirmed this was the largest theatrical release Netflix has given any of its films, though the company hasn’t shared box office numbers.

I spoke with leading agents from other talent agencies to gauge their opinion on whether Netflix was giving in to pressure from prominent directors to release more films in theaters. This speculation arose after Netflix gave Greta Gerwig a rare four-week exclusive theatrical release, and a Thanksgiving 2026 IMAX run, for her upcoming Chronicles of Narnia film. One agent insisted that Netflix’s Ted Sarandos actually supports theatrical releases and is unfairly criticized. Another agent explained that the film industry’s struggles after the strikes and the pandemic have created new opportunities for Netflix in theaters, opportunities they shouldn’t ignore.

I’ve been talking to someone deeply connected to major filmmakers, and they’re telling me theaters are really struggling to get audiences back. They’re open to anything, even experimenting with limited theatrical releases for popular streaming shows – something Netflix probably wouldn’t object to. But honestly, reviving historic movie palaces? It’s a nice thought, but it’ll only impact a handful of theaters globally and won’t make a real difference. Interestingly, even the guy everyone calls the ‘father of streaming’ apparently isn’t a huge fan of the medium himself! Despite that, I don’t get the sense he’s changing his tune or that Netflix is suddenly prioritizing theatrical releases.

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2025-11-03 23:55