Netflix CEO Ted Sarandos claims streaming services are “saving Hollywood” while declaring movie theaters an “outmoded idea” for most Americans, signaling a fundamental shift in how films are consumed.
At a Glance
- Netflix CEO Ted Sarandos declared movie theaters “an outmoded idea for most people” during a recent Time100 Summit
- Sarandos claims Netflix is “saving Hollywood” by providing a platform for content that might otherwise disappear
- Box office revenues have declined as consumers increasingly prefer watching movies at home
- Netflix maintains limited theatrical releases primarily for awards qualification purposes
- Filmmakers and actors like Willem Dafoe have expressed concern about the decline of the theatrical experience
Streaming Giant Claims to be Hollywood’s Savior
Netflix CEO Ted Sarandos has sparked controversy in the entertainment industry by declaring that streaming services are rescuing the film industry while traditional theaters fade into obsolescence. During a recent Time100 Summit in New York City, Sarandos boldly stated that Netflix is “saving Hollywood” by providing a platform for content that might otherwise never reach audiences, especially those in rural areas without easy access to theaters.
Sarandos pointed to declining box office revenues as evidence that consumer preferences have fundamentally shifted toward home viewing. This trend has accelerated since the pandemic, with even major franchises like Marvel experiencing inconsistent theater attendance. The streaming executive argued that the entertainment industry should adapt to these changing consumer habits rather than clinging to outdated distribution models.
The Death of Cinema or Consumer Choice?
While Sarandos acknowledged his personal enjoyment of the theater experience, he maintained that it’s simply not practical for most Americans. “I believe it is an outmoded idea, for most people – not for everybody,” Sarandos explained. “If you’re fortunate to live enough in Manhattan, and you can walk to a multiplex and see a movie, that’s fantastic. Most of the country cannot.”
“I think it is — for most people, not for everybody. If you’re fortunate to live enough in Manhattan, and you can walk to a multiplex and see a movie, that’s fantastic. Most of the country cannot.”, said Ted Sarandos.
Netflix hasn’t abandoned theaters entirely. The company owns Los Angeles’ Bay Theater and New York’s Paris Theater, and provides limited theatrical releases for films seeking awards qualification, such as “Glass Onion” and “Emilia Pérez.” However, Sarandos made it clear that these initiatives are about preserving the theater experience rather than the theater business model.
Hollywood Voices Express Concern
Not everyone in the entertainment industry shares Sarandos’ vision. Actor Willem Dafoe has lamented the decline of cinemas, noting the difference in attention and social discourse when watching films at home versus in theaters. Similarly, acclaimed filmmaker Steven Soderbergh believes traditional theaters still have appeal and can coexist with streaming services if they can continue to attract audiences.
Sarandos emphasized that Netflix’s consumer-focused approach has transformed viewing habits, with subscribers increasingly exploring diverse genres they might never have experienced otherwise. He pointed to promotional events like live chamber music performances inspired by Netflix shows as evidence of how streaming content can drive cultural engagement beyond the screen.
Global Concerns and Industry Evolution
Beyond the cinema versus streaming debate, Sarandos expressed concern about how entertainment is treated in trade negotiations. He noted that China plans to limit the number of US films allowed in response to US tariffs, potentially affecting American film popularity in international markets. These geopolitical tensions add another layer of complexity to an already evolving industry landscape.
Despite Netflix’s growing influence in the entertainment landscape, the streaming giant has yet to win a best picture Oscar, a milestone that would further legitimize their position as a major Hollywood player. Nevertheless, Sarandos remains confident in Netflix’s model and expressed little concern about the decline of traditional theaters as long as quality filmmaking continues.
