Close Menu
Elon Musk Monitor
  • Home
  • Elon Musk
  • AI
  • Cybertruck
    • DOGE & Cryptocurrency
    • Financial & Business
  • Grok
    • Hyperloop & Urban Mobility
    • Innovations & Future Projects
  • Mars Colonization
  • Neuralink
    • Philanthropy & Humanitarian Efforts
    • Public Perception & Cultural Impact
    • SolarCity & Renewable Energy
  • SpaceX
  • Starlink
  • Tesla
    • The Boring Company
  • X

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

‘F1’ is Apple’s highest-grossing theatrical film ever

July 7, 2025

Debate erupts over role Trump cuts played in response to deadly Texas floods

July 7, 2025

Chinese scientists propose 2033 Neptune orbiter mission

July 7, 2025
Facebook X (Twitter) Instagram
Elon Musk Monitor
  • Home
  • About Us
  • Advertise with Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • Home
  • Elon Musk
  • AI
  • Cybertruck
    • DOGE & Cryptocurrency
    • Financial & Business
  • Grok
    • Hyperloop & Urban Mobility
    • Innovations & Future Projects
  • Mars Colonization
  • Neuralink
    • Philanthropy & Humanitarian Efforts
    • Public Perception & Cultural Impact
    • SolarCity & Renewable Energy
  • SpaceX
  • Starlink
  • Tesla
    • The Boring Company
  • X
Elon Musk Monitor
Home » How Netflix keeps luring directors away from traditional box office
Financial & Business

How Netflix keeps luring directors away from traditional box office

elonmuskBy elonmuskJuly 7, 2025No Comments7 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link


Film directors Rian Johnson (L), Greta Gerwig (C), and Guillermo Del Toro (R)

Getty Images

Netflix 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The company’s leaders have said they see theatrical movie releases as an “outdated” model.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.”

Netflix

Netflix 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.

Netflix's advantage is it's still consumers first choice, says MNTN CEO Mark Douglas

“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, not wait for an extended theatrical window to elapse.

Netflix has benefited from its partnership with Sony, which gives the streamer exclusive U.S. streaming rights to the studio’s theatrical releases after they wrap up in theaters. With the deal, Netflix gets fresh content without the box-office risk.

Of course, keeping subscribers happy is only part of the strategy. Netflix saves millions in marketing costs by skipping theaters, industry experts said. Typically, a film’s marketing budget is half of what it spent on production.

So a film like the Russo Brothers’ “The Electric State,” which reportedly cost $320 million to make, could have had up to a $160 million marketing budget if it went to theaters. That’s a nearly $500 million investment before a theatrical opening, and a studio would then split ticket sales with cinemas.

Millie Bobby Brown and Chris Pratt star in Netflix’s “The Electric State.”

Netflix

Notably, the film was originally slated to be produced under Universal Studios but was transferred to Netflix after executives at Universal balked at its steep budget, people familiar with the matter told CNBC.

Success of a Netflix film is based on viewership, a metric that is not comparable to box-office dollars. “The Electric State” was streamed by 25.2 million subscribers in its first three days on the platform, according to Netflix’s Tudum site at the time of its release. That is about one-third of what Netflix’s “Red Notice” generated during its three-day launch in 2021. “Red Notice” is Netflix’s best-performing film to date with more than 230.9 million views.

What Netflix offers

It’s hard for directors and other creatives to dismiss the kind of viewership Netflix brings, Hollywood insiders told CNBC. It’s one of the reasons that Netflix has been able to draw in big-name directors, writers and producers over the last decade.

Netflix has also been more flexible with its purse strings. “The Electric State” is just one example. Scorsese’s “The Irishman” also saw studios pass on the film because of its ballooning budget, but Netflix stepped in and acquired the rights. The film went on to garner 10 Oscar nominations, although it ultimately went home empty-handed during the 2020 ceremony.

Al Pacino, Martin Scorsese and Robert De Niro attend “The Irishman” International Premiere and Closing Gala during the 63rd BFI London Film Festival

Mike Marsland/WireImage

“Netflix, because they have interest in getting awards and nominations and all that stuff, have funded and purchased and been involved with directors who are really high-quality filmmakers worldwide,” Poland said. “It’s a tribute to Netflix that those movies exist.”

The streamer has had at least one best picture contender at the Academy Awards since 2019.

The company has not been shy about spending money to secure top talent either. It’s signed dozens of lucrative first-look deals with creators, which give it the exclusive right to review and potentially purchase or distribute a new project before it is offered to other buyers. Past deals have run the gamut between television and film and included creators like Tyler Perry, Antoine Fuqua, Shonda Rhimes and Jennifer Lopez.

Netflix has even been more targeted in its contracts, as was seen when it penned a two-picture deal with Johnson for sequels to his 2019 film “Knives Out,” which reportedly was for more than $400 million.

“It would be tough for any creative to turn down the offer of the financial resources to realize their creative vision. And despite wanting their movies to be seen on the biggest screen possible, [they] have made the calculus that getting their works realized on film and presented on a major streaming platform is a bargain worth making,” Dergarabedian said.

Wall Street doesn’t seem to mind Netflix’s movie strategy. The company’s stock is valued at nearly $1,300 a share and has soared 45% since January and more than 90% in the past year.

Netflix is expected to spend around $18 billion on content this year, according to the company. It does not disclose what percentage of that funding goes to its movies versus its television productions. The company currently projects that its full-year 2025 revenue will be between $43.5 billion and $44.5 billion.

Insiders said that with those kinds of investments, consumers might need to watch out for more price hikes. MoffettNathanson’s Fishman noted that Netflix will continue to weigh its value proposition to determine if it needs to increase the cost of its services.

If Netflix keeps creating content from top-tier creators, then the analyst firm expects prices to increase.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
elonmusk
  • Website

Related Posts

‘F1’ is Apple’s highest-grossing theatrical film ever

July 7, 2025

Family offices ramp up deals in June with bets on biotech and pharma

July 7, 2025

Fast-casual restaurants lean on loyalty programs amid consumer pullback

July 5, 2025
Leave A Reply Cancel Reply

Don't Miss
Cybertruck

Tesla Cybertruck police truck donor revealed

A batch of Tesla Cybertrucks were recently revealed to be a donation to the Las…

Tesla upgrades its ridiculous Cybertruck wiper after owners report issue

February 27, 2025

Tesla Cybertruck contract with State Dept. may have been modified after Biden admin

February 26, 2025

This Tesla Cybertruck feature helped it earn a ‘Best Tech’ award

February 25, 2025
Top Posts

Analyst Predicts XRP Price Will Reach $20-$30 — Elliott Wave Theory Holds The Key

July 7, 2025

XLM Traders, Beware! Stellar’s Funding Rate Is Plummeting

July 7, 2025

Ethereum Risks Downside If Resistance Holds: $2,700 Level Is Critical

July 7, 2025

XRP Set To Shock The Crypto Market With 30% Share: Analyst

July 7, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

About Us
About Us

Welcome to Elon Musk Monitor, your go-to source for comprehensive, up-to-date information on the life, work, and innovations of one of the most influential figures in the world today—Elon Musk. Our mission is to keep you informed about Musk’s ventures and projects, ranging from electric vehicles to space exploration, and everything in between. Whether you’re a tech enthusiast, investor, or simply curious about Musk’s impact on the world, we’ve got you covered.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

Analyst Predicts XRP Price Will Reach $20-$30 — Elliott Wave Theory Holds The Key

July 7, 2025

XLM Traders, Beware! Stellar’s Funding Rate Is Plummeting

July 7, 2025

Ethereum Risks Downside If Resistance Holds: $2,700 Level Is Critical

July 7, 2025
Most Popular

How I met my partner on X/Twitter

February 8, 2025

DOGE staffer resigns after racist posts uncovered. Elon Musk might bring him back.

February 9, 2025

OpenAI accuses DeepSeek of stealing data, internet digs into the ‘irony’

February 9, 2025
  • Home
  • About Us
  • Advertise with Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
© 2025 elonmuskmonitor. Designed by elonmuskmonitor.

Type above and press Enter to search. Press Esc to cancel.