How Netflix keeps luring directors away from traditional box office

Netflix He’s not interested in bringing films to theaters.

The company’s leaders said they saw the theater film versions as a “outdated” model. Nevertheless, Flama has been withdrawn for more than ten years, some of Hollywood’s largest directors to make content only for the platform.

Martin Scorsese, Alfonso Cuarón, Bong Joon-Ho, Spike Lee and Guillermo Del Toro, the valentine of the big screen have all the films for flow service without promising a wide theater version.

More recently, Netflix entered Greta Gerwig’s rights of CS Lewis’s “Narnia Chronicles” book series, signed the director’s seat, signed Rian Johnson to make two continuation of 2019 to “Knives Out” and made the home of the first film of Kathryn Bigelow in almost a decade.

Many of these advertising elements have demonstrated the importance of the theater experience, but many Netflix projects are expected to win a wide version or long term in cinemas. Most of the time, Netflix’s films are released in a limited number of theaters for a week, long enough to suit the academy award contention.

In fact, Gerwig’s “Narnia” film is a two -week global output, which has never been done in IMAX, starting from 2026.

In his statement to CNBC, Hollywood Insiders, who wanted Netflix, anonymity, was able to remove Hollywood ability from the traditional theater model by offering profitable contracts, creative freedom and more than 300 million subscribers. At the same time, due to expensive budgets or risky species, films become a paradise for auteurs that can not be drawn otherwise.

“What Netflix offers to filmmakers is an irresistible combination of deep financial pockets and broad creative latitude,” Comscore Senior Media Analyst Paul Dergarabedian said. He said. “This, this, some of the biggest names in the film production today, both behind the camera behind the camera, and most of these remarkable names have built their careers on the canvas of the big screen in the cinema.”

As long as Netflix broke the traditional Hollywood model, analysts and box office advocates argued why the pennant should adopt a more traditional theatrical approach. Every year, a study arises from a box office analysis company or Hollywood’s more audience on behalf of one of the theater trade groups. It’s likely to publish a movie That happened It was released in theaters.

“For most other traditional media companies, pendulum, yes, theaters have returned to the idea that theaters have increased the value of a film,” Moffettnathanson analyst Robert Fishman said. He said.

Hollywood Insiders told CNBC that Netflix leaders have long admitted that money has been left on the table without using a typical theater model. However, Netflix’s CEO Ted Sarandos said that the company has no plan to change the box office strategy.

Industry analyst David Poland, “Netflix would be complicated.” And potentially would lose money. “

Sarandos said that Netflix’s aim is to provide content to flow subscribers and that the audience paying the service should take as soon as possible and did not expect a expanded theater window to pass.

After hugging the theaters, Netflix took advantage of his partnership with Sony, who gave special US flow rights to the theater versions of the studio. With the agreement, Netflix receives new content without a box office risk.

Of course, making subscribers happy is just part of the strategy. Sector experts said Netflix saves millions of marketing costs by skipping theaters. Typically, the marketing budget of a film is half of what it spends for production.

Therefore, a film like Russo Brothers’ “electric state” cost 320 million dollars, and if he went to theaters, he could have a marketing budget up to $ 160 million. Before the opening of a theater, an investment of approximately $ 500 million and a studio would separate the ticket sales with cinemas.

In particular, the film was initially produced. Universal Studios were transferred to Netflix after Balked on the upright budget of the managers in Universal, and people familiar with the issue told CNBC.

The success of a Netflix film is based on the audience, a metric that cannot be compared with box office dollars. Netflix was released at the time of the “electric state” in the first three days on the “Electric State” was published by 25.2 million subscribers. This is about one -third of the things that Netflix produced during the three -day launch of the “Red Declaration” in 2021. “Red Notification” Netflix The best performance film so far With more than 230.9 million views.