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 some Netflix movies, particularly those that the company wishes to be eligible for Academy Awards, do run in theaters, their runs tend to be cursory and, almost without exception, take place in limited theaters.
This remained the case even after 2022’s Glᴀss Onion debuted at No. 3 during its one-week run, despite playing in significantly fewer theaters (696) than many prominent movies below it on the domestic chart, including Devotion (3,405), The Menu (3,228), Black Adam (3,372), and Bones and All (2,727).
Per ᴅᴇᴀᴅline, Cinemark CEO Shawn Gamble criticized Netflix’s approach of avoiding sending their streaming movies to theaters during a recent earnings call with analysts.
After reflecting on the success of F1 The Movie for 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 ᴀssets. 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
As one of the most popular streamers on the market, Netflix recently reported their best ever quarterly revenue in their own Q2 earnings call. Therefore, it makes sense why they might be hesitant to change their theatrical approach, especially while trying to continue growing their ad-supported tier by drawing in more subscribers.
However, as Gamble points out, many rival streamers have been embracing theatrical distribution for their originals and finding great success. This includes F1 The Movie boosting Apple Studios’ prospects by becoming the 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 тιтles, including Paramount’s Mean Girls and Smile (both of which were originally meant to be Paramount+ exclusives) and Prime Video’s Saltburn and Air.
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 originals with blockbuster potential, including Guillermo del Toro’s Frankenstein, the Glᴀss Onion sequel Wake Up ᴅᴇᴀᴅ Man, the Keira Knightley thriller The Woman in Cabin 10, and the Alan Ritchson sci-fi action movie War Machine.
Our Take On Shawn Gamble’s Netflix Comments
They Could Eventually Turn Around On Theatrical Distribution
Ultimately, Gamble may be right to be optimistic about 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.
Netflix is also giving an unprecedented IMAX release to Greta Gerwig’s upcoming Chronicles of Narnia movie after 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 hit Barbie.
Source: ᴅᴇᴀᴅline
