Amid headlines of shrinking theatrical windows, sagging box-office receipts, and production migration out of Los Angeles, Netflix co-CEO Ted Sarandos declared at the TIME100 Summit that Netflix saving Hollywood is not only possible but already underway.
His remarks challenge long-held assumptions about communal moviegoing and underscore Netflix’s strategy to meet audiences where they are.
1. “No, We’re Saving Hollywood”
When asked if Netflix has “destroyed Hollywood,” Sarandos was unequivocal:
“No, we’re saving Hollywood.”
He framed Netflix as a “very consumer-focused company,” emphasizing the service’s ability to deliver the program to you in a way you want to watch it. This user-centric philosophy, he argues, complements rather than competes with theatrical release.
2. Theatrical Experience: Outmoded for Most
Sarandos admitted his personal love for theaters but questioned their relevance for the majority:
“I believe it is an outmoded idea, for most people — not for everybody.”
By labeling the traditional theatrical model “outmoded,” Sarandos highlighted a generational shift in viewing habits. For many, the convenience of high-quality home screens, on-demand libraries, and flexible schedules outweighs the communal aspects of cinemas.
3. Consumer Demand Drives Change
Pointing to declining box-office figures, Sarandos rhetorically asked,
“What is the consumer trying to tell us?”
His answer:
“That they’d like to watch movies at home.”
This insight underpins the notion of Netflix saving Hollywood—by responding directly to consumer preferences, Netflix aims to revitalize the industry rather than dismantle it.
4. Industry Hurdles Beyond Tariffs
Earlier at Semafor’s World Economy Summit, Sarandos addressed unique challenges faced by entertainment companies, especially in international markets: quotas, co-production mandates, and unpredictable tariff regimes. He noted:
“It’s often that the entertainment industry doesn’t get treated like a real business, and that’s one of the examples of it.”
This context shows that Netflix saving Hollywood involves navigating both creative and regulatory landscapes, underscoring the platform’s global ambitions.
Netflix’s Hybrid Strategy
Netflix’s approach to saving Hollywood extends beyond purely streaming originals.
The company has experimented with limited theatrical releases for select titles, balancing prestige festival runs with at-home launches. Hits like Glass Onion and Roma earned critical acclaim via combined release strategies, demonstrating that a hybrid model can coexist with traditional cinemas.
Impact on Production and Talent
By positioning itself as an engine for content creation, Netflix addresses the production outflow that has plagued states like California. Sarandos argued that:
“We deliver the program to you in a way you want,”
which ensures ongoing demand—and funding—for new productions. Netflix’s multi-billion-dollar content investment supports thousands of crew jobs and on-location shoots, contributing to the industry’s health.
Viewer Engagement and Analytics
A key advantage in Netflix saving Hollywood is the platform’s real-time analytics. Unlike box-office tallies, Netflix can measure viewership down to the minute, allowing content creators to refine storytelling based on audience data.
This feedback loop enhances creative risk-taking, as Sarandos noted:
“We’re not beholden to advertising cycles or weekend windows.”
Such flexibility fosters a creative ecosystem in which diverse voices and formats can thrive.
The Future of Communal Viewing
While Sarandos views theaters as outdated for most, he acknowledges they remain vital for communal events, blockbuster spectacles, and premium formats like IMAX. Rather than eliminating cinemas, Netflix’s vision of saving Hollywood envisions a complementary landscape:
- Boutique theatrical runs for niche audiences
- Event screenings for major releases
- Partnerships with exhibitors to maintain physical venues
This balanced approach preserves cinemas as cultural hubs while embracing digital convenience.
Conclusion: Redefining Hollywood’s Lifeline
Ted Sarandos’s declaration that Netflix saving Hollywood is no hyperbole—it’s a strategic response to evolving viewer behavior and industry challenges. By prioritizing consumer choice, embracing hybrid releases, and investing heavily in content, Netflix aims to sustain the film ecosystem. As he put it:
“We deliver the program to you in a way you want to watch it.”
Whether this model fully replaces traditional theaters or coexists alongside them, one thing is clear: Hollywood’s future will be shaped by adaptability, and Netflix intends to lead that transformation.
