Netflix CEO Claims Their Model Is "Saving Hollywood," Describes Theater Experiences "An Outmoded Idea, For Most People"

Netflix CEO Ted Sarandos argues that their model is “saving Hollywood.” While their DVD rental service existed for years prior, Netflix launched their streaming platform in 2007. During its early years, the platform was merely a distribution mechanism for existing libraries of film and television, akin to something like Comcast’s On Demand service, which first rolled out in 2002. In 2013, the platform transitioned to exhibiting original content with the TV series House of Cards. Two years later, the platform entered the original film space, releasing the critically acclaimed Beasts of No Nation.

Per ᴅᴇᴀᴅline, Sarandos stated that Netflix is “saving Hollywood.” The CEO was responding to the claim that production changes and box office struggles were linked to companies like Netflix destroying Hollywood. Sarandos clarified that Netflix is “saving Hollywood” because it will “deliver the program to you in a way you want to watch it.” As a “consumer-focused company,” Sarandos thinks Netflix is responding to the needs of the consumer, who does not value in-theater viewing as much anymore. Check out the full quote from Sarandos below:

No, we’re saving Hollywood. [Netflix is] a very consumer-focused company. We deliver the program to you in a way you want to watch it. What is the consumer trying to tell us? That they’d like to watch movies at home. I believe it [the theatrical release] is an outmoded idea, for most people — not for everybody.

What This Means For Netflix And The State Of The Industry

The Box Office Is At A Low Point

Cillian Murphy as J Robert Oppenheimer looks broken during his hearing in Oppenheimer

Sarandos is not the only Netflix executive who has been a publicly adamant defender of Netflix’s model. Earlier this year, Netflix chief content officer Bela Bajaria made the bold claim that the Best Picture-winning movie Oppenheimer could have done just as well if it had been released on Netflix. Speaking about the streamer’s platform more broadly, Bajaria noted that “you have to think about all those other movies except for the four or five” that are much better on the big screen when thinking about release strategy.

In the eyes of both Sarandos and Bajaria, Netflix’s decisions are responsive to the changing market. After all, box office totals are much lower nowadays than they were ten years ago. The total domestic box office gross in 2015 was over $11.1 billion, whereas 2024 saw just $8.5 billion. The market saw a huge hit during the COVID-19 pandemic in 2020, and it is still not at pre-pandemic standards. Whether Netflix’s production push is causal or reactionary to this dip is not something Sarandos gets into in-depth, but he still ardently believes in the streaming approach.

Our Take On Netflix’s Strategy

It Is Still Worth Going To The Movies

Jack Black singing as Steve in A Minecraft Movie

It is undeniable that Netflix films can pull huge numbers. Still, I think there is something about going to the movies that is still a completely distinct experience from watching on the small screen at home. This is something that Oscar winner Sean Baker talked about in one of his Anora acceptance speeches this year, inspiring many cinephiles. 2025 has seen some huge successes already, such as with A Minecraft Movie, and with big releases like Avatar: Fire and Ash still to come, it will be interesting to see how theaters continue to compete in the streaming era.

Source: ᴅᴇᴀᴅline