Netflix’s Ted Sarandos Makes Rare Pivot Toward Cinema Owners at CinemaCon

In a surprising move that signals a potential shift in streaming strategy, Netflix co-CEO Ted Sarandos attended CinemaCon in Las Vegas for the first time. The annual convention for theater owners served as the backdrop for Sarandos to hold a series of meetings with domestic and international exhibitors, marking a notable thawing of the historically frosty relationship between the streaming giant and the traditional cinema industry.

A Strategic Shift in Theatrical Strategy

For years, Sarandos was a vocal proponent of a streaming-first model. This approach often clashed with filmmakers and exhibitors, as Netflix typically opted for limited theatrical windows—usually two to three weeks—which were primarily designed to qualify films for awards rather than achieve wide commercial releases. This stance previously led some talent to choose traditional studios over Netflix to ensure a robust theatrical presence.

However, the tone of these recent meetings was described as “hopeful.” While Sarandos maintained that some content performs better on streaming, he expressed a desire to find ways to work together with theater owners. This pivot comes as Netflix has begun publicly championing theatrical films, a shift that coincided with the company’s efforts to court Warner Bros.

Key Meetings and Collaborations

Sarandos conducted two primary sets of meetings during the conference: one with international exhibitors and another with key members of Cinema United, the lobby group representing U.S. Exhibitors. He met with several industry leaders, including:

• Adam Aron, CEO of AMC Theatres
• Eduardo Acuna, CEO of Regal
• Sean Gamble, CEO of Cinemark

During these discussions, Sarandos highlighted past collaborations that generated significant revenue for theaters. Examples include the singalong experience for KPop Demon Hunters and a special New Year’s Eve screening of the Stranger Things finale, the latter of which generated $25 million in concession sales.

The Bigger Picture: The Warner Bros. Pursuit

Industry insiders suggest these meetings were as much about building goodwill as they were about specific deals. The outreach occurred while Netflix was pursuing an $83 billion bid to acquire a significant portion of Warner Bros. Discovery’s business, including the Warner Bros. Movie studio and HBO. By improving relations with exhibitors, Netflix positions itself more favorably as it seeks to integrate a traditional studio model into its streaming ecosystem.

Key Takeaways

• First-Time Appearance: Ted Sarandos attended CinemaCon for the first time, signaling a “dipping of the toe” into wider theatrical exhibition.
• Relationship Repair: The meetings aimed to repair damaged relationships with major chains like AMC, Regal, and Cinemark.
• Revenue Potential: Netflix is leveraging successful event-based screenings to prove the value of theatrical partnerships.
• M&A Influence: The shift in strategy aligns with Netflix’s pursuit of Warner Bros. Discovery assets.

What This Means for the Future of Film

While no firm plans were finalized during the CinemaCon meetings, the gesture indicates that Netflix may be reconsidering its staunch opposition to expanded theatrical windows. If Netflix moves toward a more traditional release model, it could lead to a new era of collaboration between streamers and cinemas, potentially offering more wide-release opportunities for the platform’s original films.