Netflix’s Ted Sarandos Says He Loves Movies. Do You Believe Him?

It has taken quite some time for this realization to come about. Similar to how Colonel Nathan R. Jessup, played by Jack Nicholson in “A Few Good Men,” admitted with conviction that he had ordered the Code Red (“You’re God damned right I did! “), Ted Sarandos, the forward-thinking co-CEO of Netflix, has now confessed his belief that watching movies at theaters is an outdated concept.
In an interview
At the Time100 Summit on April 23, when speaking alongside Time magazine editor-in-chief Sam Jacobs, Sarandos commented, “People used to grow up believing they wanted their movies shown on enormous screens with audiences watching continuously in packed theaters where viewers would shed tears. This scenario occurs far less frequently these days.”

When Jacobs questioned whether the movie theater experience is “obsolete,” Sarandos responded that he believed it was. When prompted about the notion of making films primarily “for movie theatres, for the shared experience,” being an outdated concept, Sarandos stated, “I believe it is—at least for most people, but not everyone. Those who are lucky enough to reside in Manhattan and easily access a multiplex have a great opportunity. However, this isn’t feasible for much of the nation.”

The initial statement you’d like to make is this: Convey that message to Director Ryan Coogler and the countless individuals who watched “Sinners” at their local cinema, propelling it to become the biggest film success of the year. The question then arises: Has a movie been released on Netflix?
ever
generated that level of buzz and excitement and cultural heat? The answer is no, because the reality is that you can’t do that on Netflix. Streaming, while it’s now an integral part of our lives as entertainment consumers, is a hermetic experience that doesn’t breed movie buzz. (For a small-screen series like “Adolescence” or “Squid Game,” the situation is quite different.) There are movies that become streaming hits, of course. But they don’t get out into the ether. They don’t catch fire the way that “Sinners” has. The very essence of that film’s excitement has been experiencing it on the big screen, where its monumental quality can take hold.

The second thing you want to say to Sarandos is that his comment about how the movie-theater experience still lives in Manhattan – but not, I guess, anywhere else – doesn’t quite make sense. I live in Manhattan, and yes, I sometimes walk to the multiplex. But let’s say, instead, that you live in Denver or Atlanta or Pittsburgh or Tucson or St. Louis or Providence or Cleveland or Dallas, or in a suburb or an exurb. In those places, they have these things called
cars
That’s because people use them to transport themselves to various places. Whether it’s going to their workplace, visiting a shopping center, dining out at restaurants, or watching movies at a multiplex. Ted Sarandos understands this, yet his statement regarding “Manhattan” is actually aimed at making a passive-aggressive jab at so-called “East Coast elites.” In his narrative, these individuals supposedly remain the sole group of people passionate about cinema houses.
The genuine people, those from the heartland, have progressed!

This reflects demagoguery, indicating that Sarandos’s argument—that the movie theater experience is obsolete, outdated, and merely a holdover for urban intellectuals—is more an expression of his viewpoint than an accurate depiction of reality.
desire
He’s outlining the vision of the world he desires—one where everyone stays at home enjoying streaming services such as Netflix, while cinema complexes stand idle and derelict, resembling something out of “Escape from the Planet of the Apes.” In Ted Sarandos’ view, this is an optimistic scenario. It’s the future-oriented strategy upon which his business approach thrives.

However, one could reasonably question: Haven’t we heard this from him previously? The answer would be not entirely, not precisely, and certainly not in such explicit terms. Sarandos stands out as both shrewd and persuasive. A key aspect of his approach to shaping public perception around his philosophical stance towards combating traditional movie theaters involves emphasizing, through what seems like playful earnestness, his deep affection for film. He portrays himself as an ardent fan of movies who genuinely appreciates the theatrical viewing experience. Under his leadership, Netflix has acquired and restored multiple iconic cinemas (such as the Paris Theatre in New York City and the Bay Theater along with Grauman’s Egyptian Theatre in Los Angeles), utilizing them as high-profile showcases for Netflix’s commitment to cinematic culture. However, beneath this facade lies deception; these revitalized theatres essentially serve to mask their true intent.
museums
of cinema, mere icons of the faded past.

In the present, Sarandos has wooed directors like David Fincher and Rian Johnson and Greta Gerwig over to Netflix, and that’s all part of a double-barrelled strategy. He throws zillions of dollars their way (for both budgets and salary). At the same time, he promises them that their films will receive a theatrical release. Technically, that needs to happen for awards consideration. But depending on the movie in question, the release will range from token to nominal to blink-and-you’ll-miss-it.

Here’s where the Manhattan idea actually proves relevant. If you live in New York (or Los Angeles), as most of America’s national entertainment journalists do, when a Netflix movie opens “in theaters” it might literally be playing at a theater near you. But not if you live…anywhere else. Rian Johnson, the director of the “Knives Out” films, which are now Netflix productions,
recently gave an interview
in which he seemed a little confused about all this. He said that he wanted the next “Knives Out” movie, entitled “Wake Up Dead Man,” “in as many theaters for as long as possible,” adding, “I want as many people as possible to see it in that form.”

If that’s the case, then he’s working for the wrong boss. Three years ago, Netflix allowed “Glass Onion: A Knives Out Mystery” to play on 600 screens for one week, a month before its streaming launch. During that theatrical blip, it made a total of $13 million. At the time, many asked: Why is Netflix leaving so much money on the table? But the last thing that Ted Sarandos would have wanted is for “Glass Onion” to play in theaters for a month and make $100 million. It would have meant the undercutting of his grand plan. He has promised Greta Gerwig that her upcoming “Chronicles of Narnia” film will play on IMAX screens for two weeks before it drops on Netflix on Christmas Day. But when the time arrives, how is Gerwig going to feel about having a potential hit movie…that then gets yanked from theaters so viewers can see it at home and proceed to not buzz about it?

My point isn’t that the streaming revolution has been overhyped. It has, but it’s all too real. More and more people are staying home to watch movies, and that represents a genuine threat to the future of movie theaters. Attendance is down 20 percent (maybe more if you factor in higher ticket prices), and that’s a serious winnowing. But Ted Sarandos, in coming out and saying that the movie-theater experience is “outdated,” as if it were the horse-and-buggy or the compact disc, is doing something beyond simply acknowledging the difficulties the industry faces. He wants to bury movie theaters before their time. He’s trying to turn his wish into your command. I believe that time will prove Ted Sarandos wrong, but to me it’s actually good that he said these things. For anyone in the entertainment industry who cares about the future of movie theaters, it’s important to know who’s on your side…and who isn’t.