On Friday, Netflix Inc. (NASDAQ:NFLX) announced that Greta Gerwig's upcoming "Narnia: The Magician's Nephew" will make an exclusive global theatrical run before its streaming debut.
Netflix Shifts Strategy With Exclusive Theatrical Release
The adaptation of CS Lewis' 1955 fantasy novel will debut in theaters on Feb. 12, 2027, before arriving on Netflix on April 2 following a more than 45-day theatrical window.
The release marks the first time Netflix has committed to a wide theatrical rollout of this scale for one of its own major films.
Netflix said the decision was driven by the enduring, multigenerational appeal of the "Narnia" franchise and the film's broad international audience.
"I cannot wait for people to see the film in theaters on February 12 and on Netflix on April 2," Gerwig said in a statement.
Originally planned for a limited two-week release on IMAX Corp (NYSE:IMAX) screens beginning Thanksgiving, the film's expanded theatrical strategy underscores Netflix's confidence in the project's box-office potential.
Theater Chains Welcome Netflix's Big Screen Commitment
"This is welcome news," Cinema United President Michael O'Leary told Reuters, adding that audiences will now have the opportunity to experience the film "on the big screen."
AMC Entertainment (NYSE:AMC) CEO Adam Aron also voiced strong support, writing on X that AMC would "throw everything we have" behind the release.
Theatrical Strategy Amid Streaming Competition
Netflix has traditionally prioritized releasing most of its commercially driven films directly on its streaming platform.
However, in 2022, the company made a rare exception by giving "Glass Onion: A Knives Out Mystery" an exclusive one-week run across more than 600 theaters.
Netflix also brought the final episode of “Stranger Things” to select theaters across the U.S. and Canada.
Competing streaming platforms such as Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) have also embraced theatrical releases before making films available to stream.
Netflix Beats Q1 Estimates, Issues Softer Q2 Outlook
In April, Netflix posted first-quarter revenue of $12.25 billion, surpassing analyst expectations of $12.18 billion.
The streaming giant also delivered quarterly earnings of $1.23 per share, well above forecasts of 76 cents per share.
For the second quarter, Netflix projected revenue of $12.57 billion, slightly below Wall Street estimates of $12.63 billion. The company also forecast earnings of 78 cents per share, compared with analyst expectations of 84 cents per share.
Price Action: Netflix shares closed at $92.06 on Friday, down 1.66% with the stock slipping another 0.12% to $91.95 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge, Netflix ranks in the 91st percentile for Growth, indicating weaker short and long-term trends while maintaining a solid medium-term trend.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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