Is Netflix Saving Hollywood, or Just Redefining "Straight-to-Video"?

is netflix the savior of hollywood movies?

An article from Deadline has stuck with me for the last few weeks. In it, Ted Sarandos was quoted at the TIME100 Summit. When asked if – amid shrinking theatrical windows, sagging box office receipts, and production fleeing L.A. – Netflix has destroyed Hollywood, the company’s co-CEO Ted Sarandos replied, “No, we’re saving Hollywood.”

He also touched upon the communal aspect of theatrical moviegoing. While the Netflix executive admitted he loved theaters, he said of the experience, “I believe it is an outmoded idea, for most people — not for everybody.”

The Shifting Landscape: Data on Theatrical Decline

It's no secret that movie theaters have been facing a challenging landscape, a trend accelerated by the COVID-19 pandemic and shifting consumer habits. Data supports this observation.

A new HarrisX poll of over 1,000 US adults found that only 34% prefer to watch movies in theaters. This data corresponds closely with a much larger study of American movie interest from PCH in 2023, which found that 32% preferred to watch movies in theaters.

The same PCH article reveals a stark picture of declining attendance: the average annual ticket sales per person in 2023 was 2.47. This figure stood at a high of 5.48 in 2002, fell to 3.73 in 2019, and then plummeted to a mere 0.66 in 2020 during the height of the pandemic. - nScreenMedia

Contributing Factors to Staying Home

Several factors contribute to this shift away from theaters.

“The ticket price wasn't the only financial concern; 42% of people surveyed also cited the cost of theater concessions as an issue.

40% cited the comfort of viewing at home versus the theater should be of bigger concern to theater owners. The deep penetration of large UltraHD screens, coupled with the fact that most top SVOD services stream their best content in 4K with a high dynamic range, means that many viewers are missing little in quality when viewing at home. Soundbars and surround sound systems further erode the premium experience of the theater. There are also lingering concerns over hygiene from a quartet of non-theater viewers.”

I agree with all this. Watching movies at home on my 67-inch TV with Dolby Atmos often makes going to the theater a genuine debate for me with most films. I watch more movies at home than in the theater, but that’s not drastically different from my past. Ever since getting a DVD player and having a steady job, I’ve owned more movies and watched them regularly.

But now, when I miss a movie's opening weekend and see an announcement by the middle of the following week that it’s arriving on Max within a few weeks, I’m certainly not going to spend $20 or more to see it in the theater.

Is Netflix Truly Hollywood's Savior?

With a clear preference among many for an at-home experience, is Netflix, as Sarandos claims, saving the movie industry? In terms of sheer volume, Netflix is a significant force. According to Statista, Netflix released 219 films in 2023. Looking at a broader scope of content, What’s On Netflix reported that the streamer added 589 Netflix Originals (a category that includes films, series, and specials) in 2024. For comparison, Statista lists 569 movies released in theaters in 2024.

While Netflix’s output of films is substantial, and its overall original content additions rival, if not exceed, the number of annual theatrical releases, what about the quality and lasting impact?

Netflix certainly buys a lot of content and gives creators another significant outlet to release their movies. However, I often still think of many Netflix movies as the modern-day equivalent of the straight-to-video releases from my youth – plentiful, sometimes entertaining for a single viewing, but rarely memorable. Films like Red One and countless others I’ve watched on the platform come to mind; I consumed them and never felt the urge to go back.

The Question

This brings me to a crucial question: How many movies that you saw in a theater do you remember vividly and want to rewatch? Now, how many Netflix-exclusive movies can you say the same about?

While Netflix undeniably provides a massive quantity of content, a vital platform for filmmakers, and has become a major employer in the industry, its role as Hollywood's "savior" remains debatable if the primary metric is fostering enduring cultural impact and creating cinematic experiences that audiences cherish and revisit, rather than just sheer volume of watchable hours. The definition of "saving Hollywood" seems to be very much in the eye of the beholder.