"Is this gonna put them in bankruptcy again?": Netizens slam Netflix after co-CEO Ted Sarandos' latest comments on theatrical releases

Netflix’s co-chief executive officer Ted Sarandos recently clarified that the firm has no plans to change its stance on the release plan for its films. While speaking in an interview about the company’s first-quarter earnings, he emphasized that “driving folks to a theater,” is not Netflix’s “business.” The streaming giant would rather have “big new desirable content” on its slate, the businessman added.

This is in contrast to the pattern followed by its competitors like Apple Original Films and Amazon Studios. Both OTT platforms allow their movie offerings to have a lengthy time in cinema halls before hitting the base.

While speaking with Bank of America’s media analyst Jessica Reif Ehrlich, Sarandos said:

“The film division is doing great…Driving folks to a theater is just not our business. We create that demand and we collect that demand on our subscription service.”

As soon as the update became public, fans rallied against Sarandos on Twitter and wondered whether this move was going to put the OTT firm in “bankruptcy again.”

Fan reacts to update. (Photo via Twitter/Sportskeeda)

While no media sources have stated that Netflix never filed for bankruptcy, it did reportedly lose a million subscribers (roughly) last year, starting in April until June 2022 - the largest quarterly loss in the firm’s history.

Further, a recent report claimed that the company has a debt amounting to a good $8.29 billion. Given this scenario, there are questions as to whether Sarandos’ move is indeed pragmatic.

---

Netflix executive Ted Sarandos' comment leaves netizens riled up and frustrated

During Tuesday’s earnings call, Ted Sarandos emphatically told Reif Ehrlich that “there are no major changes at play” when it comes to premiering films. He added:

“Driving folks to a theater is just not our business. Having big new desirable content drives value for our members and drives value for our business. We’re really happy with the investment in film. Of course, we’re trying to improve it, like we do with all of our films, but our release strategy — remember, there are a lot of ways to create and collect demand for a film.”

The moment this development became known, fans took to Twitter to indicate that the move may backfire and cause the California-headquartered media venture to lose a lot of subscribers. They opined that real money is in the theatrical runs, and so Sarandos is making a mistake by pouring cold water on the same.

One user even demanded that Zack Snyder’s December 2023 release Rebel Moon be taken to cinema halls first.

Fans react to update. (Photo via Twitter/Sportskeeda)

Fans annoyed with Sarandos. (Photo via Twitter/Sportskeeda)

Fans react to update. (Photo via Twitter/Sportskeeda)

Apart from the epic space opera film, Netflix’s 2023 slate comprises several high-profile titles, including David Fincher-directed and Michael Fassbender-starring The Killer.

Other notable releases include Nicole Kidman, Zac Efron, and Joey King-led rom-com A Family Affair, and Julia Roberts and Mahershala Ali's psychological thriller Leave the World Behind.