Netflix has reaffirmed its commitment to its current release strategy, emphasizing that it has no plans to alter its approach to theatrical distribution. CEO Ted Sarandos clarified this stance during a recent earnings conference, stating, “There’s no change in the strategy. Our strategy is to give our members exclusive first-run movies on Netflix.”
Sarandos highlighted the success of the streaming platform’s recent hit, KPop Demon Hunters, which had a limited theatrical run featuring a “singalong” edition. He noted that the film saw a surge in popularity precisely because it was first released on Netflix. The involvement of “superfans” helped propel the recommendation engine, leading to a significant viewership. According to Sarandos, this approach reinforces Netflix’s strategy, as being available on the platform initially helped build momentum for the film.
The data reflects this, showing that KPop Demon Hunters became Netflix’s most-watched movie ever, amassing an astonishing 400 million views. The film’s theatrical release, albeit brief, generated $19 million globally in just two days, showcasing the effectiveness of Netflix’s model.
Despite this steadfast strategy, Netflix has not completely sidelined theatrical releases. Upcoming films like Guillermo del Toro’s Frankenstein are set for short runs in theaters before their Netflix debuts, planned for November 7. Rian Johnson’s highly anticipated project, Wake Up Dead Man, will also have a theatrical window around the Thanksgiving holiday before its release on December 12. Additionally, KPop Demon Hunters is set to return to theaters for Halloween weekend, and Netflix will host the final episode of Stranger Things in theaters concurrently with its online premiere.
Overall, while Netflix continues to prioritize its streaming service, it is clearly not abandoning the theatrical exhibition format entirely, offering selected films the opportunity to gain broader audiences before their streaming availability.