Netflix CEO Ted Sarandos: The Traditional Theatrical Experience Is Largely 'Outdated'

      Netflix CEO Ted Sarandos argues that the conventional theater experience is “outdated” for most people, highlighting that audiences prefer to watch films at home.

      In a recent interview at the TIME100 Summit with TIME editor-in-chief Sam Jacobs, Sarandos discussed challenges facing Hollywood, such as declining box office revenues and a struggling film industry in Los Angeles. He noted that Netflix is doing well and Jacobs provocatively asked, “Have you destroyed Hollywood?”

      Sarandos responded, “We’re saving Hollywood,” and elaborated on how he believes Netflix caters to audience preferences.

      “You pointed out the decrease in box office revenues,” Sarandos mentioned. “What does that indicate? What message is the consumer sending us? They prefer to watch movies at home, thank you.”

      On the ‘Outmoded’ Theatrical Experience

      Sarandos pointed out that theater owners are advocating for a 45-day exclusive window for films to be shown in theaters before they become available for streaming, stating: “That is completely disconnected from what consumers want when they enjoy a movie.”

      Jacobs remarked that many filmmakers and actors desire theatrical releases for their films. Sarandos acknowledged that Netflix occasionally accommodates such requests and also releases films in theaters for Oscar qualifications. (The Academy of Motion Picture Arts and Sciences mandates that films must run for at least seven consecutive days in theaters under certain conditions.)

      Sarandos described Netflix’s theatrical releases as “bespoke releases.” In recent years, the company has released several high-profile films theatrically before they were made available for streaming, including contenders like Martin Scorsese’s The Irishman (2019), David Fincher’s Mank (2020), Jane Campion’s The Power of the Dog (2021), and Bradley Cooper’s Maestro (2023).

      “We attempt to do these bespoke releases… We must fulfill some Oscars qualifications, so they need to show for a while. It also aids the press cycle since they enjoy discussing movies that are in theaters,” Sarandos explained.

      He emphasized that whenever Netflix collaborates with filmmakers, he encourages them to focus on the audience and create movies that fans will love in order to receive positive recognition.

      Sarandos admitted that while many directors still aspire to see their work on the big screen—and he personally appreciates the theatrical experience—things are changing.

      “We’re undergoing a transition. Many people grew up wanting to create films for large screens with audiences experiencing them in theaters for months, generating emotions and sold-out shows. That’s becoming rare,” he stated.

      He mentioned that while the notion of watching films in theaters is “outdated” or “outmoded” for many, there are exceptions.

      “If you’re lucky enough to live in Manhattan and can easily access a multiplex, that’s wonderful,” he said. “But most of the country does not have that option.”

      When Jacobs asked Sarandos if the idea of the theater experience becoming outdated troubled him, especially given his own enthusiasm for theaters, he replied, “No. I would be far more concerned if people stopped creating remarkable movies… If we wish for audiences to watch films how we envision rather than how they prefer, then filmmaking may not be sustainable, as there wouldn’t be a viable business for it.”

      He also mentioned that Netflix rescued Manhattan’s Paris Theater, located near Central Park, when it was about to be repurposed into a Walgreens. The company often uses the theater for screenings and events.

      “We preserved it to maintain the theater experience,” Sarandos stated.

      You can find a recording of the interview with Ted Sarandos here, courtesy of TIME.

      Main image: Netflix CEO Ted Sarandos at the premiere of Netflix’s Stranger Things 2 on October 26, 2017, at the Westwood Village Theatre in Los Angeles. Courtesy of Shutterstock.