Ted Sarandos Says Movie Theaters Are “Outdated”—And Hollywood Needs to Catch Up
Netflix co-CEO Ted Sarandos is doubling down on his belief that Hollywood’s traditional obsession with movie theaters is holding the industry back — and he’s not pulling punches.
Speaking at the Time100 Summit on Wednesday in New York, Sarandos said what many in the industry still refuse to admit: audiences have changed, the model is outdated, and Netflix is winning because it listens to what viewers actually want. “We’re saving Hollywood,” Sarandos said with a grin when asked if Netflix had destroyed it.
“People Want to Watch at Home, Thank You”
Citing the global box office decline and shrinking theatrical windows, Sarandos made it clear that the theatrical-first mindset no longer makes sense for most people. “What is the consumer trying to tell us?” he said. “That they’d like to watch movies at home, thank you.”
Netflix, which has long championed streaming-first releases, is not entirely out of the theater game — they still own Los Angeles’ Bay Theater and New York’s historic Paris Theater, and run limited releases for Oscar eligibility. But Sarandos was frank: “We didn’t save [those theaters] to save the theater business. We saved it to save the theater experience.”
He described Netflix’s approach to theaters as “bespoke,” primarily used for awards qualifications and building buzz. “I’ve tried to encourage every director we work with to focus on the consumer, focus on the fans. Make a movie that they love, and they will reward you.”
“It’s an Outdated Concept”
Sarandos pushed back against the idea that films need the communal theater setting to succeed, calling it a romanticized idea from a past era. “Folks grew up thinking, ‘I want to make movies on a gigantic screen and have strangers watch them…’ That’s an outdated concept,” he said.
When asked whether the desire to make films “for theaters” is now outmoded, he didn’t hesitate: “I think it is — for most people, not for everybody.”
He highlighted the geographic divide: “If you’re fortunate to live in Manhattan and you can walk to a multiplex and see a movie, that’s fantastic. Most of the country cannot.”
What does matter to him? “I’d be bothered if people stop making great movies,” he said. Not where or how they’re watched — just that they’re still being made.
“Hollywood Is Trapped in What It Wants the Audience to Do”
Sarandos warned the industry not to get stuck in outdated habits. “Hollywood is trapped behind the idea of how they want audiences to see movies, rather than how audiences actually want to watch movies,” he said. To survive and thrive, he urged the industry to let go of old rules and follow audience behavior.
A Few Extra Jabs for Old Rivals
In a light moment to close the session, Sarandos was reminded of a now-infamous 2010 quote from former Time Warner CEO Jeff Bewkes, who likened Netflix to “the Albanian army” and dismissed the idea it could threaten traditional media giants.
Asked how he’d respond now in 2025, Sarandos smiled: “I would say it in Albanian if I could.”