Netflix CEO: Theaters Outdated, Saving Hollywood

At the Time100 Summit, Netflix CEO Ted Sarandos boldly claimed that his company is "saving Hollywood," despite ongoing challenges in the film industry such as the exodus of production from Los Angeles, the shrinking theatrical window, and declining box office numbers. Sarandos emphasized Netflix's consumer-centric approach, stating, "We deliver the program to you in a way you want to watch it."

Addressing the decline in theater attendance and box office sales, Sarandos suggested that consumers prefer watching movies at home. He acknowledged his personal appreciation for the theater experience but labeled it as "an outmoded idea for most people." This perspective aligns with Netflix's business model, which prioritizes streaming over traditional cinema.

Hollywood's struggles are evident as even previously reliable blockbusters like Marvel films are now unpredictable in their success. Family-oriented movies like "Inside Out 2" and video game adaptations such as "A Minecraft Movie" are currently supporting the industry.

The shift from theaters to home viewing has been noted by actors like Willem Dafoe, who lamented the loss of the communal aspect of movie-going. He expressed concern over the diminished attention span and engagement when watching films at home, stating, "More difficult movies, more challenging movies can not do as well, when you don’t have an audience that’s really paying attention."

In contrast, filmmaker Steven Soderbergh sees a future where movie theaters and streaming services can coexist. He believes that the allure of the cinematic experience still exists and stressed the importance of engaging both young and older audiences to sustain the tradition of going to the movies. Soderbergh noted, "It's still a great destination," and emphasized that the future of theaters depends on attracting audiences beyond just the timing of releases.

This ongoing debate highlights the evolving landscape of film consumption and the challenges and opportunities that lie ahead for both streaming platforms and traditional cinemas.