Netflix CEOs on Why Streamer Never Entered Theatrical Business Despite Consideration

Netflix’s top executives have revealed that the streaming giant seriously debated launching its own theatrical film business for years. They ultimately chose to focus their resources elsewhere until the opportunity to buy Warner Bros. presented itself.

Ted Sarandos and Greg Peters say Netflix debated entering theatrical business at one point

In a recent Q4 2025 earnings interview, Netflix leaders Ted Sarandos and Greg Peters explained that the company internally discussed distributing its original films in theaters. However, the idea consistently lost out to other priorities.

“We debated many times over the years whether we should build a theatrical distribution engine or not,” Sarandos said. “And in a world of priority-setting and constrained resources, it just didn’t make the priority cut.” Peters echoed that the core streaming service demanded their full attention. “We were busy investing in other areas,” he stated, noting that Netflix’s rapid growth was the primary focus.

Sarandos acknowledged his past comments, calling the theatrical experience “outmoded,” but framed them as a product of Netflix’s business position at the time. “We were not in the theatrical business when I made those observations,” he said. “Remember, I’ve said it many times, this is a business, not a religion. So conditions change.”

The pivotal condition change is Netflix’s planned $83 billion acquisition of Warner Bros. Discovery’s studios. This deal gives Netflix immediate access to a major theatrical operation without having to build one from scratch.

Regarding the possible closing of the Warner Bros. deal, he stated, “We will have the benefit of a scaled, world-class theatrical distribution business with more than $4 billion of global box office,” Sarandos said. He has committed to maintaining a 45-day theatrical window for Warner Bros. films.

Despite not building its own division, Netflix has already tested the theatrical waters with successful limited releases for titles like the Stranger Things 5 finale and K-pop Demon Hunters. Peters said these experiments, along with output deals, proved the model is an “effective complement to the streaming model (via Variety).”

Source: Comingsoon.net