movie theaters reach out to Netflix

The American professional association of cinemas has explicitly offered an agreement to Netflix to program its flagship films more widely in exclusivity before they are broadcast on the platform. For its president, this solution would benefit both partners. Netflix is ​​considering changing its business model to boost its growth.

What if the solution to the respective problems of American cinemas and Netflix was in a union? Hard hit by the containment measures and the closing of theaters caused by the Covid-19 crisis, attendance at American dark rooms is indeed struggling to recover.

United States: cinemas are struggling to recover, Netflix in crisis of growth

Admittedly, American box office receipts rebounded nicely between 1^is January and April 15, 2022, reaching 1.5 billion dollars, five times more than over the same period in 2021. But the figures remain down 40% compared to 2019. Adam Aron, the CEO of AMC, the largest theatrical circuit in the United States, hopes to return to 2019 levels only by 2024.

On his side, Netflix is experiencing the first true growth crisis in its history. The platform lost 200,000 subscribers in the first quarter of 2022, and anticipates a further drop of 2 million subscribers for the second half.

Faced with this erosion, Netflix plans to change its model a little. The first option, favored by the board of directors of the platform, would be to offer discounted offers, but with advertising. However, by breaking the principle of the total absence of advertising, which was the coup de force of the platform in its infancy, does Netflix not risk losing its soul?

“Cinema doors have been open to Netflix movies for years”

The other option is to release more of his big movies theatrically. For the time being, Netflix only offers releases in dribs and drabs, in a few theaters or festivals, and only for its films that it wants to present at the Oscars, because it is a legal obligation.

But John Fithian, the head of the National Association of American Theater Owners (NATO), suggests that the SVOD platform go much further. “Cinema doors have been open to Netflix movies for years,” he asserted.

He adds that he had “many talks” with Ted Sarandos, co-CEO of Netflix, to prove to him that he could “earn more money by releasing your best films first in theaters”.

And in France ?

In France, which is experiencing a historic drop in cinema attendance, which is weakening the entire sector, broadcasting films produced by SVOD platforms remains prohibited.

The only option: respect the media chronology, namely release the film in theaters and wait for the legal deadline (15 months for Netflix) to be able to broadcast it in SVOD. This is what Disney or Warner have already done with some of their blockbusters, as Black Widow or The Suicide Squad.

–