Netflix’s approach to theatrical distribution has been called out by the CEO of one of the United States' biggest theater chains. The popular streaming service generally releases their original movies directly onto their platform, without theatrical or physical media releases.
While someNetflix movies, particularly those that the company wishes to be eligible for Academy Awards, do run in theaters,their runs tend to be cursoryand, almost without exception, take place in limited theaters.
This remained the case even after 2022’sGlass Oniondebuted at No. 3during its one-week run, despite playing in significantly fewer theaters (696) than many prominent movies below it on the domestic chart, includingDevotion(3,405),The Menu(3,228),Black Adam(3,372), andBones and All(2,727).
PerDeadline,Cinemark CEO Shawn Gamble criticized Netflix’s approach of avoiding sending their streaming movies to theatersduring a recent earnings call with analysts.
After reflecting on the success ofF1 The Moviefor Apple Studios, which helped push Cinemark to a quarter with a net income of $93.5 million (more than double the previous year), he said that"it’s clearly unfortunate" that Netflix does not seem to have “any near-term plans to change their overarching strategy.”
Gamble argued that “all the data clearly shows now that theatrical creates a bigger promotional impact, elevates consumers' desire to see films, [and] builds bigger brands and cultural moments.” However, he revealed that they are “optimistic” that Netflix’s approach will eventually change. Read Gamble’s full quote below:
Based on [Netflix’s] public commentary, it doesn’t appear they have any near-term plans to change their overarching strategy. It’s clearly unfortunate. … There appears to be a big opportunity that’s not being pursued as all the data clearly shows now that theatrical creates a bigger promotional impact, elevates consumers' desire to see films, builds bigger brands and cultural moments, delivers longevity and remembrance and value for those assets. So it’s also important to filmmakers and consumers. But it appears that’s not something they’re choosing to elect at this point. We’re still optimistic that at some stage they’ll change course.
What This Means For Netflix
They Don’t Necessarily Need To Follow Other Streamers' Lead
However, as Gamble points out, many rival streamers have been embracing theatrical distribution for their originals and finding great success. This includesF1 The Movieboosting Apple Studios' prospects by becomingthe seventh highest-grossing movie of the year at the time of writing.
Other theatrical releases have worked to both promote streaming releases and add to their revenue for a variety of titles, includingParamount’sMean GirlsandSmile(both of which were originally meant to be Paramount+ exclusives) andPrime Video’sSaltburnandAir.
Smile, which grossed $217.4 million worldwide, was not only the highest-grossing original horror movie of 2022 but the highest-grossing horror movie in general.
This approach could potentially benefit upcoming Netflix originalswith blockbuster potential, includingGuillermo del Toro’sFrankenstein, theGlass OnionsequelWake Up Dead Man, the Keira Knightley thrillerThe Woman in Cabin 10, and the Alan Ritchson sci-fi action movieWar Machine.
Our Take On Shawn Gamble’s Netflix Comments
They Could Eventually Turn Around On Theatrical Distribution
Ultimately,Gamble may be right to be optimisticabout Netflix potentially embracing theatrical distribution in the future. As they chase further growth, the company has experimented with other distribution approaches, including a variety of live presentations.
Netflixis also giving an unprecedented IMAX release toGreta Gerwig’s upcomingChronicles of Narniamovieafter much negotiation. This could indicate that they are softening their strictures somewhat, especially when it comes to the commercial possibilities of Gerwig’s follow-up to the billion-dollar smash hitBarbie.
