Netflix expands theatrical push but stays streaming-first, CEO says

Streaming giant plans 30 cinema releases in 2027 as it restructures leadership and seeks new growth

By LineZotpaper

Published21 October 2026

Read Time3 min

Sources2 outlets

Netflix is set to release 30 films in theaters next year, matching its 2026 output, even as co-CEO Ted Sarandos insists the company remains a streaming-first business. The expansion comes amid a stock slump, viewership stagnation, and a leadership overhaul that installed former Disney executive Peter Rice as chief content officer.

Netflix is making clear it remains a streaming-first business, but its push into theatrical distribution is growing. During the company's third-quarter earnings call on Tuesday, co-CEO Ted Sarandos reiterated that content is meant for subscribers and should reach them quickly. Yet the company is planning 30 theatrical releases in 2027, on par with this year's total.

Not all of those films will get wide releases or long runs. Sarandos described the approach as "specialty theatrical releasing," tailoring each film's release strategy. Greta Gerwig's "Narnia: The Magician's Nephew" will receive a wide release and a 49-day exclusive theatrical window in February. An animated film called "Charlie vs. the Chocolate Factory" will also get a longer run. Other films, like the recent "KPop Demon Hunters," had only two-day stints.

Netflix has said it will begin reporting box office results for films with longer theatrical windows, a standard practice for major studios that marks a new level of disclosure for the streamer.

Analysts see the move as positive. Alicia Reese of Wedbush wrote that theatrical releases are "a net positive for reach and streaming demand" and can improve talent relationships and add revenue. Matthew Condon of Citizens said theatrical could help Netflix build "stickier fan bases" around its intellectual property, an area where the company has historically been weak.

However, Steven Cahall of Wells Fargo noted that building a theatrical distribution infrastructure is not easy, requiring negotiation with theaters and a dedicated team.

Sarandos acknowledged that Netflix has lost talent because it would not guarantee wide theatrical releases, citing departures of the creators and lead producer of its hit "Stranger Things" to competitors. Incoming content chief Peter Rice, who has experience in film and television, may help lure top names.

Netflix recently restructured its C-suite, bringing in Rice to replace 10-year veteran Bela Bajaria. The company also dismissed head of film Dan Lin, and laid off roughly 1,000 employees, including Lin's deputy and other film executives. A replacement for Lin has not been named.

Sarandos downplayed the leadership changes, saying, "There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. ... It's just not growing as fast as it could or as fast as we'd like." He added that the company had "some really solid doubles and triples this year" but needs more "home runs."

Netflix spent $20 billion on content last year. The company has diversified into video games, live sports, and quick-turn documentaries, but has lacked the kind of breakout hits like "Stranger Things," "Bridgerton," and "Squid Game" that drove earlier growth.

In its shareholder letter, Netflix said engagement remains healthy, while acknowledging concerns about view-hours growth.

Analysis

Why This Matters

Netflix's theatrical expansion could reshape the streaming industry's relationship with movie theaters, potentially narrowing the gap between traditional studios and streamers.
The leadership shake-up and talent departures signal that attracting A-list creators may require more than streaming-only deals, forcing other platforms to rethink their strategies.
With subscriber growth flattening and a 30% stock decline since January, Netflix is under pressure to find new revenue streams and build stronger intellectual property franchises.

Background

Netflix has long positioned itself as a disruptor of traditional Hollywood, spending heavily on original content while keeping most releases exclusive to its platform. Its previous theatrical releases were limited, often just enough to qualify for awards. But as competition for viewer attention intensifies and growth slows, the company is cautiously experimenting with wider theatrical windows. The recent restructure under former Disney executive Peter Rice suggests a shift toward more industry-standard practices, including talent-friendly release strategies.

Key Perspectives

Streaming-first advocates: Analysts like Alicia Reese argue that theatrical releases complement streaming without cannibalizing it, building buzz and driving subscriber growth. Netflix executives maintain the core strategy is unchanged. Talent and industry observers: Creators increasingly demand theatrical guarantees. The departure of "Stranger Things" talent to rivals underscores the risk of losing top-tier names if Netflix does not offer broader release options. Investors and market skeptics: While theatrical can boost brand and IP value, Wells Fargo's Steven Cahall warns that building the needed distribution infrastructure is a significant undertaking. The cost and complexity may limit how far Netflix can go.

What to Watch

The box office performance of "Narnia: The Magician's Nephew" and how Netflix reports those results.
Whether Peter Rice's tenure leads to more exclusive talent deals and wider theatrical windows for upcoming films.
Netflix's next quarterly engagement metrics and subscriber numbers, which will indicate whether the theatrical strategy boosts growth.

Sources

Netflix has dipped its toe into theatrical. Is it ready to jump in? · Business News
Netflix has dipped its toe into theatrical. Is it ready to jump in? · US Top News and Analysis

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedNetflix remains a streaming-first business, a position attributed to co-CEO Ted Sarandos.Business News: “Netflix is making itself clear: It's a streaming-first business. During the company's third-quarter earnings call on Tuesday, co-CEO Ted Sarandos reiterated the streaming giant's long-held stance that its content, which it spent $20 billion on last year, is meant for its subscribers”
SupportedNetflix is set to release 30 films theatrically in 2027, matching its 2026 total.Business News: “the company is set to have 30 theatrical releases in 2027, on par with what it brought to cinemas in 2026.”
Partly supportedThe article describes Netflix's theatrical push as expanding, although the planned release count is unchanged from 2026.Business News: “the company is set to have 30 theatrical releases in 2027, on par with what it brought to cinemas in 2026.”
Partly supportedNot all the planned films will get wide releases or long theatrical runs.Business News: “And while not all of these features are expected to have wide releases or long runs in theaters”
SupportedSarandos called Netflix's approach “specialty theatrical releasing.”Business News: “Sarandos said Tuesday the company's strategy is about "specialty theatrical releasing," in which each film gets its own bespoke release.”
SupportedGreta Gerwig's Narnia film will have a wide release and a 49-day exclusive theatrical window in February.Business News: “Netflix is testing the waters with projects like Greta Gerwig's "Narnia: The Magician's Nephew," which will have a wide release and a 49-day exclusive theatrical window when it hits cinemas in February.”
SupportedAlicia Reese of Wedbush called theatrical releases “a net positive for reach and streaming demand.”Business News: “"Theatrical releases are a net positive for reach and streaming demand," Alicia Reese, analyst at Wedbush, wrote in a note Wednesday.”
SupportedMatthew Condon said theatrical releases could help Netflix build “stickier fan bases” around its intellectual property, an area where Netflix has historically been weak.Business News: “"If they really want to build stickier fan bases around some of their [intellectual property], I think theatrical could be a good avenue for them to do that," Condon said. "That's one area that Netflix has historically not been all that strong in, is building like really, really strong IP."”
SupportedSarandos said Netflix had lost talent because it would not guarantee wide theatrical releases, including people behind Stranger Things who left for competitors.Business News: “Sarandos admitted earlier this month that the company has lost talent because it would not guarantee wide theatrical releases. Most notably, the creators and lead producer behind its hit "Stranger Things" have all jumped ship in the last year.”
Partly supportedNetflix laid off roughly 1,000 employees, including Dan Lin's deputy and other film executives.Business News: “That came just days after it laid off roughly 1,000 employees including Lin's right hand Doug Belgrad as well as Sheroum Kim, the director of independent film, according to various media reports.”
SupportedSarandos said, “There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. ... It's just not growing as fast as it could or as fast as we'd like.”Business News: “"There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. ... It's just not growing as fast as it could or as fast as we'd like."”
SupportedNetflix spent $20 billion on content last year.Business News: “its content, which it spent $20 billion on last year”