Netflix looks to be gearing up for a potentially disruptive new play. For one thing, they will allow WBD movies to have a 45-day exclusive window in theaters. This development follows comments made by Netflix’s co-CEO, Ted Sarandos, indicating the company’s commitment to a competitive box office presence while maintaining its current business model. The announcement represents another step in the evolution of Netflix’s strategy on releasing films theatrically and toward conventional wisdom in with the rest of the industry.
Sarandos revealed that WBD films will be able to make more money with this 45-day window. This month and a half period, however, comes right before their shift to being available on streaming. This decision dovetails with Netflix’s desire to leverage the theatrical experience and strengthen its box office showing. After all, films in theaters typically play for just 30 to 45 days on average. This strict exclusivity period is strategically advantageous to both companies.
Competitive Edge in the Box Office
Ted Sarandos emphasized the competitive nature of the Netflix team, stating their desire to excel in opening weekends and overall box office returns. The strength of the company was in its ability to pull profitability from theatrical releases. From a single movie, it’s brought in more than $25 million. Sarandos commented on just how key this strategy is, stating,
“We will run that business largely like it is today, with 45-day windows.” – Ted Sarandos
Continuing this practice only increases Netflix’s competitive advantage in the theatrical space. It ensures that American audiences will be able to access content more conveniently and affordably shortly after its theatrical release.
Clarifying Previous Stances on Theatrical Releases
In that same interview with The New York Times, Sarandos discussed the role of traditional theaters. He bravely declared the traditional model “outdated for many.” This comment represents a larger recognition by the industry of shifting audience tastes and the changing face of entertainment. Netflix’s commitment to a short theatrical window signals an effort to adapt to these changes while still embracing the benefits of cinematic releases.
Netflix is experimenting with a new release rollout. Overall, this move underscores its commitment to honoring the theatrical experience while simultaneously placing the company in prime position to compete with the biggest names in a cutthroat film industry. The latter understands that although streaming has become the most popular way to consume films, the theatrical experience is still worth preserving for millions of moviegoers.
Looking Ahead
The impending merger of Netflix and WBD might make things even more interesting, as it could cement the trend toward blurring distribution and exhibition lines. Both companies are treading carefully in this developing landscape. They will be more concerned with protecting box office potential and distinction than keeping up with the new realities and demands of today’s audiences. Sarandos’ claim is more an indication that Netflix is still committed to pushing innovation. The famed production company will continue to shift their creative approaches to dominate the theatrical and streaming landscape.
