Netflix's CEO, Ted Sarandos, has once again voiced concerns regarding the future of traditional cinemas as the platform continues to adapt to modern entertainment trends. According to Sarandos, audiences have grown accustomed to enjoying the latest films from the comfort of their own homes, suggesting that this shift in viewing habits no longer necessarily relies on conventional movie theaters. Even a few years after the COVID-19 pandemic, cinema operations have yet to return to their pre-pandemic levels. Compared to 2019, box office revenue has dropped by 40–50%, with forecasts predicting an additional 8% decline this year. On the other hand, live entertainment sectors such as Broadway, sports events, and concerts are bouncing back at a significantly faster pace, highlighting a noticeable shift in consumer behavior.
Ted Sarandos mentioned in an interview with The New York Times that audiences had already begun to rely less on theaters even before the pandemic, and that the pandemic merely accelerated this trend. He stated, We weren't the ones who caused this issue, but we adapted and grew from it.. Additionally, he pointed out that the theater industry failed to respond appropriately to the rise of streaming platforms, rigidly clinging to traditional operational models, which ultimately caused them to miss out on opportunities for transformation. However, he clarified that he is not entirely dismissing the unique value of theaters and expressed his intention to maintain their presence in order to continue offering audiences the option of unique cinematic experiences.
Netflix has long adopted a streaming-first strategy, but Sarandos believes audiences have grown increasingly accustomed to this experience. While Netflix has recently experimented with theatrical releases for some of its titles—like *The Irishman* or *Glass Onion: A Knives Out Mystery*—those were short theatrical runs aimed at securing Oscar nominations, rather than focusing on box office revenue. He particularly emphasized how, in the hustle and bustle of modern life, the option to watch movies at home has become increasingly significant. Viewers appreciate the convenience of enjoying their favorite films at home whenever they want, a shift that has completely transformed the film industry as a whole.
Movie theaters aren’t entirely without a fighting chance. In recent years, premium screening technologies like IMAX and 4DX have become crucial pillars of the film industry, with distributors striving to lure audiences back to cinemas by offering immersive experiences. Statistics show that box office revenues from such high-standard films are indeed trending upward, with action and sci-fi movies reaping the most significant benefits. However, not every movie is a perfect fit for an IMAX or 4DX screening.
