Netflix CEO Ted Sarandos Calls Movie Theatre Model “Outdated”, Sparks Industry Debate

April 25, 2025: Netflix co-CEO Ted Sarandos has reignited the ongoing debate over the future of cinema by calling the traditional theatrical release model “outdated.” Speaking at the Time100 Summit in New York, Sarandos challenged long-standing industry norms and emphasized the growing preference among audiences to consume content from the comfort of their homes.

In the conversation, reported by Variety, Sarandos pointed to declining box office numbers as a key indicator of shifting consumer behavior. “What does that say? What is the consumer trying to tell us? That they’d like to watch movies at home, thank you,” he said, highlighting how the traditional 45-day theatrical window is no longer in line with what viewers want.

Sarandos argued that Netflix’s success lies in its ability to adapt and cater to audience demands, rather than forcing them into outdated consumption models. “Make a movie that they love, and they will reward you,” he added, urging filmmakers to focus on storytelling and emotional connection rather than format.

While Netflix does operate a few select cinemas, Sarandos clarified that those are primarily used for awards qualifications and press events—not as a central part of its distribution strategy.

When asked whether the idea of making films for the communal theatre experience is now obsolete, Sarandos responded candidly: “I think it is for most people, not for everybody. If you’re fortunate to live in Manhattan and can walk to a multiplex, that’s fantastic. Most of the country cannot.”

He emphasized that filmmakers and studios should not get “trapped” behind traditions that no longer serve the evolving preferences of audiences. “I would be bothered if people stop making great movies,” he noted, reinforcing that while formats may change, quality storytelling must remain at the heart of the industry.

Sarandos’s remarks have sparked strong reactions across the film world, with some viewing them as forward-thinking and reflective of a rapidly changing landscape, while others see them as a threat to the theatre-going experience many still hold dear.

As the entertainment industry continues to grapple with the balance between tradition and innovation, Sarandos’s comments may just be another sign that the future of cinema is increasingly being shaped by the stream-first generation.