In this articleNFLXFollow your favorite stocksCREATE FREE ACCOUNTFilm directors Rian Johnson (L), Greta Gerwig (C), and Guillermo Del Toro (R)Getty ImagesNetflix isn’t interested in bringing movies to theaters.The company’s leaders have said they see theatrical movie releases as an “outdated” model. Yet for more than a decade, the streamer has lured in some of Hollywood’s biggest directors to make content exclusively for its platform.Martin Scorsese, Alfonso Cuarón, Bong Joon-ho, Spike Lee and Guillermo del Toro, darlings of the big screen, have all directed films for the streaming service without the promise of a wide theatrical release.More recently, Netflix has wooed Greta Gerwig into the director’s seat after acquiring the rights to C.S. Lewis’ “The Chronicles of Narnia” book series, signed Rian Johnson to make two sequels to 2019’s “Knives Out” and made itself the home of Kathryn Bigelow’s first film release in nearly a decade.Many of these creatives have touted the importance of the theatrical experience, but few of the Netflix projects are expected to garner a wide release or a long run in cinemas. Most of the time, Netflix’s films are launched in a limited number of theaters for a week, just long enough to be eligible for Academy Award contention.In fact, Gerwig’s “Narnia” film is getting an exclusive two-week global debut in IMAX starting Thanksgiving Day 2026, something that has never been done before.Daniel Craig returns as Benoit Blanc in “Glass Onion: A Knives Out Story.”NetflixNetflix has been able to bring Hollywood talent away from the traditional theatrical model by offering lucrative contracts, creative freedom and an audience pool of more than 300 million subscribers, Hollywood insiders, who requested anonymity to discuss industry moves, told CNBC. It’s also become a haven for auteurs whose films might not otherwise get made, either because of pricey budgets or risky genres.”What Netflix offers filmmakers is an irresistible combination of deep financial pockets and wide creative latitude,” said Paul Dergarabedian, senior media analyst at Comscore. “This is enough to draw some of the biggest names in filmmaking today both behind and in front of the camera, and it’s striking since most of these notable names have built their careers on the canvas of the big screen in the movie theater.”Why not theatrical?For as long as Netflix has been disrupting the traditional Hollywood model, analysts and box-office proponents have argued for why the streamer should embrace a more conventional theatrical approach. Every year or so, a study appears from a box-office analytics company or on behalf of one of Hollywood’s theatrical trade groups concluding that audiences are more likely to stream a movie that’s been released in theaters.”It seems like for most of the other traditional media companies the pendulum has flown back to the idea that, yes, theatrical does enhance the value of a movie,” said Robert Fishman, analyst at MoffettNathanson.Hollywood insiders told CNBC that Netflix’s leaders have long admitted that money is being left on the table by not employing a typical theatrical model. But Netflix’s co-CEO, Ted Sarandos, has said he has no plans to change the company’s box-office strategy.”It would be complicated for Netflix, a distraction from what they’re trying to do,” said industry analyst David Poland. “And it would be potentially money-losing.”Sarandos has repeatedly said that Netflix’s purpose is to provide content for its streaming subscribers, noting that the audience that pays for its service should get it as soon as possible, …
