When Netflix releases big movies, even the ones that resemble Hollywood blockbusters, its approach is consistent: Get people to watch them on the streaming service, not in theaters.
In the cases where Netflix does put its films in cinemas, it does so in a limited fashion, primarily to build buzz or get awards consideration.
Could Netflix be poised to make a big exception?
The Los Gatos, Calif.-based streamer is in early talks with cinema tech provider Imax Corp. to bring its upcoming adaptation of “The Chronicles of Narnia” to its giant screens, according to people familiar with the matter who were not authorized to comment. The highly anticipated movie is based on the popular C.S. Lewis novels and directed by “Barbie” co-writer and director Greta Gerwig.
Discussions between Netflix, Imax and Gerwig, who has been a driving force on the issue, are preliminary at this stage, the people said. A deal may not happen. If an agreement solidifies, it would be Imax’s first deal for a theatrical window for a Netflix feature film.
The talks represent a potentially delicate balancing act for Netflix.
Netflix wants to work with the best filmmakers in the business, and many of them, including “The Irishman” director Martin Scorsese, want their movies shown on the big screen. But Netflix’s priority is its streaming service, which has nearly 283 million subscribers globally and generates billions of dollars in annual subscription revenue. Whenever Netflix executives are asked about whether they’ll do more in theaters, the response is the same: They like their streaming-first model.
Netflix and Imax declined to comment.
The discussions were earlier reported by Bloomberg and Puck News’ Matthew Belloni.
Some analysts and industry observers have been critical of Netflix’s movie strategy over the years, arguing that its films have struggled to enter the cultural zeitgeist in the way its TV shows have. Some felt Netflix left money on the table by only showing “Glass Onion: A Knives Out Mystery,” Rian Johnson’s sequel to his popular murder mystery “Knives Out,” in just 700 theaters for a few days in 2022 before it became available for streaming.
Traditional movie studios put their movies in theaters for weeks and sometimes months before making them available for home viewing. When big studio movies are released early for digital consumption, it’s often as a $25 rental.
It also can be hard for a movie to break through the streamer’s large library of content. Netflix’s top movies of all time are action flick “Red Notice,” dark comedy “Don’t Look Up” and sci-fi movie “The Adam Project,” all movies released two or three years ago. Recent hits on the platform include Jeremy Saulnier’s “Rebel Ridge,” a relatively low-budget thriller. Netflix also does well with movies it licenses from other studios, including Universal Pictures.
“They’re trying to play catch-up with movies, and they’re 100 years behind,” said Michael Pachter, research analyst at Wedbush Securities. “And they’re never going to catch up.”
While Netflix has won a significant number of awards for its films, it has yet to win an Academy Award for best picture. It bought and restored the Egyptian Theatre in Hollywood from the American Cinematheque in an effort to win over cinephiles and filmmakers. Netflix also owns the Bay Theater in Pacific Palisades, where it screens its own movies.
“Some of these films, in the context of that massive bandwidth of Netflix, you’re like a drop in the ocean,” said Paul Dergarabedian, senior media analyst at Comscore. “When a movie is in a movie theater, you’re not competing with unlimited hours of content, unlimited titles on a small screen you can scroll through.”
Domestic theatrical revenues are down significantly from pre-COVID-19 levels. But last year, movies like “Barbie,” “Oppenheimer” and romantic comedy “Anyone but You” received a significant boost in theaters as audiences kept coming through word-of-mouth and the hype of social media. Particularly with “Barbie,” fans dressed in pink to see it in theaters, making it an event.
This year has seen a strong showing for family-friendly films, with the box office success of animated movies such as “Inside Out 2.”
“The Chronicles of Narnia” fits into that genre as an epic tale with Christian undertones about a magical world and the four siblings who discover and rule it as kings and queens. The last three Narnia films, released theatrically in 2005, 2008 and 2010 by Disney and 20th Century Fox, generated $537.7 million in the domestic U.S. and Canada market, according to non-inflation-adjusted data from Comscore.
“If you look at Narnia, the depth and breadth of the fantasy world that it inhabits — having that level of detail … having that imagery presented in Imax is huge,” Dergarabedian said. “For a movie that is expected to be a visual extravaganza, such as Narnia would present, Imax is a perfect home for that.”
If Netflix were to partner with Imax, it would put Gerwig’s cinematic vision on screens highly coveted by filmmakers and studios. Imax has roughly 2,000 screens globally, with screens typically about 65 feet wide and 85 feet tall. Its biggest screens stretch to more than 125 feet tall. Imax specializes in “event” movies, often in the action-adventure genre that benefits from huge screens.
Over time, Netflix has sought to build excitement for its shows and movies through social media, consumer products and its live programming. The streamer has hosted balls themed around its romantic series “Bridgerton,” helping sustain excitement in between seasons, and has hosted other fan events to support shows like “Outer Banks.”
Netflix executives have defended its movie strategy. Co-Chief Executive Ted Sarandos said in an earnings presentation earlier this month that the streamer’s top 10 films that launch on Netflix have more than 100 million views.
“It’s our desire to keep adding value to our consumers for their subscription dollar,” Sarandos said. “We believe that not making them wait for months to watch the movie that everyone’s talking about adds that value.”
“The Chronicles of Narnia” will be one of the major movies on Netflix’s slate after naming Dan Lin as its new film chief earlier this year. Lin took over the position from Scott Stuber, who left in January to start his own company. It was Stuber who had pushed Netflix executives for theatrical releases of major films. Lin, who produced films including “It” and “The Lego Movie,” is not an evangelist for the theatrical model.
Under Lin, Netflix restructured its movie department to be grouped under genres instead of by size of budget.