Netflix co-CEO Ted Sarandos attended the TIME100 summit, where he shared his thoughts on the future of the film industry and cinemas in particular.
When asked whether Netflix is destroying Hollywood amid declining theatrical screenings and falling box office, Ted answered:
«No, we’re saving Hollywood».
According to Sarandos, the falling box office receipts convey the basic idea of viewers that «they want to watch movies at home», while Netflix is a «people-oriented company» and fulfills their desires. He went on to add that he loves movie theaters, but considers them outdated.
To tell you the truth, streaming services like Netflix do pose an existential threat to cinemas — not only because they are gaining more and more subscribers, but also because they are actually rebuilding the industry’s model by providing content at the moment it is wanted.
Moreover, the company understands this and invests more money in its own projects every time, as well as provides them with exclusive screening on streamingdespite the fact that they could potentially earn more money at the box office. «The staff» Hollywood, so to speak, is actively complicit in this — directors like Greta Gerwig, sign long-term contracts with Netflixsignaling to studios that they have lost their «luster».
With this in mind, the streaming service is building its plans very confidently and ambitiously: in previous comments, Sarandos said that Netflix plans to become a trillion-dollar company:
«We doubled our revenue over the previous five years. We increased our profits 10 times and tripled our market capitalization. So there is a way to do this. Obviously, everything depends on successful work».
Netflix’s market capitalization currently stands at $450 billion, while its revenue last quarter reached $10.5 billion, exceeding analysts’ expectations. At the end of October, the streaming service had 282.7 million subscribers worldwide.
Spelling error report
The following text will be sent to our editors: