It seems like Netflix will not follow in the footsteps of its rivals by implementing a conventional theatrical model for films anytime soon.
“The film division is doing great,’’ Ted Sarandos (Netflix’s co-CEO) said in a recent earnings call. “Driving folks to a theater is just not our business. Having big new desirable content drives value for our members and drives value for our business. There are no major changes in play.”
Apple and Amazon Prime Video have emerged as Netflix’s primary rivals in recent years. Both streaming platforms have started giving traditional theatrical releases to their original films. Recently, Amazon kicked off this plan by dropping Ben Affleck’s Air directly in the theatres before its streaming release. The film has received rave reviews and grossed over $55 million globally via theatrical release. Apple has also announced to bestow a theatrical release window to Martin Scorsese’s upcoming directional, Killers of the Flower Moon. The star-studded Western crime drama will spend weeks in theatres before appearing on the streaming service. It treasures talents like Leonardo DiCaprio, Robert De Niro, Lily Gladstone, and many more.
Does Netflix’s strategy of not providing traditional theatrical releases to films make sense? We can see why the streaming giant has decided to opt for this approach. Regarding scale and size, Netflix is still the biggest fish in the pond. This scenario has also made the executives, including Sarandos, optimistic about the streaming service’s future. In the recent earnings call, Sarandos added that Netflix’s rivals “simply” do not possess the service’s reach and scale.
Plus, we are all familiar with Netflix’s tendency to produce and distribute content on its own, allowing it to keep a close eye on the availability and quality of its offerings. Also, not going with the conventional theatrical release model showcases the streamer’s confidence in its existing strategy. The service strongly believes in bestowing content exclusively through streaming, making content easily accessible for viewers.
Although, it is hard to ignore the disadvantages of Netflix’s current strategy. The platform’s present approach certainly misses the opportunity to attract viewers who prefer watching movies on the big screen. In addition, a conventional theatrical release can potentially generate additional revenue through merchandise tie-ins and box office sales. This case will aid the streaming service amidst the increasing competition in the global streaming market.
Netflix plans to deliver several high-profile titles this year, including Zack Snyder’s Rebel Moon, David Fincher’s The Killer, psychological thriller “Leave the World Behind” starring Julia Roberts and Mahershala Ali, and rom-com “A Family Affair” starring Nicole Kidman and Zac Efron.
“Because of our reach and our scale, it affords the opportunity to invest in these big movies and bring them to our members,” Netflix’s Sarandos said. Stay tuned for more updates.