In a recent interview, Ted Sarandos, co-CEO of Netflix, addressed the transformation occurring within Hollywood. During a conversation at the Time100 Summit in New York with Time magazine editor-in-chief Sam Jacobs, Sarandos emphasized Netflix’s consumer-centric approach. He highlighted that while traditional movie theaters struggle due to outdated business models, Netflix thrives by focusing on delivering content directly to viewers in their preferred formats. The discussion also touched on Netflix's limited involvement in theatrical releases and Sarandos' views on the evolving landscape of filmmaking.
A Shift in Hollywood Dynamics
On a crisp autumn day in New York, Ted Sarandos engaged in an insightful dialogue about the current state of Hollywood. At the Time100 Summit, he shared his perspective on why Netflix continues to grow despite challenges facing the broader entertainment industry. Sarandos pointed out that consumers increasingly prefer watching movies from the comfort of their homes rather than adhering to rigid theater release schedules. To illustrate this point, he mentioned how studios cling to outdated 45-day windows for exclusive theatrical releases, which no longer align with audience preferences.
Despite this shift, Netflix maintains ties to traditional cinema through its ownership of iconic theaters like Los Angeles’ Bay Theater and New York’s Paris Theater. These venues were preserved not merely to sustain the theater business but to uphold the cherished experience of viewing films in a cinematic setting. Additionally, Netflix occasionally provides limited theatrical runs for certain films to meet awards qualifications, such as "Glass Onion" and the upcoming "Emilia Pérez."
Sarandos acknowledged the transition period the industry is undergoing, noting that many filmmakers still idealize presenting their work on large screens for communal viewing. However, he argued that this notion has become obsolete for most people outside urban areas where access to multiplexes is limited. Despite expressing personal affection for theaters, Sarandos urged Hollywood to adapt to changing consumer habits instead of insisting on traditional methods.
Throughout the 15-minute exchange, topics ranged from economic policies affecting streaming services to hypothetical career moves. When asked about replacing Bob Iger at Disney or managing "Saturday Night Live," Sarandos humorously favored the latter while admitting uncertainty regarding future leadership decisions in the entertainment world.
In reflecting on past criticisms, Sarandos referenced a dismissive 2010 comment by former Time Warner CEO Jeff Bewkes regarding Netflix's competitive potential. With wit, Sarandos suggested responding in Albanian if given the opportunity today, symbolizing Netflix's rise from underdog status.
From a journalistic standpoint, this interview underscores the importance of embracing technological advancements and consumer demands within any industry. As someone observing these changes, it becomes evident that success lies in flexibility and innovation rather than clinging to conventional practices. The entertainment sector must continue evolving to remain relevant amidst shifting societal trends.