Netflix Inc (NASDAQ:NFLX) CEO Ted Sarandos shared this week that the company isn’t showing enough growth. That thought could be put to the test with the company’s plans announced for showing films in movie theaters.
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Netflix Cozies up to Movie Theaters
Streaming giant Netflix has had many success stories over the years for its movies, shows and live content. One of the company’s biggest hits is "KPop Demon Hunters," a movie from Sony Group Corp (NYSE:SONY), released exclusively on Netflix in 2025.
That film won awards, topped music charts, is being turned into immersive events and will have a sequel. The movie is also the most-watched Netflix film of all time, with 325.15 million views in its first 90 days, ranking significantly ahead of second-place "Red Notice" at 230.9 million views.
Now imagine the highly anticipated sequel to the film that set records might not contribute as much to Netflix’s subscriber and advertising revenue as once hoped.
"When the ‘KPop Demon Hunters’ sequel comes, you can expect a very broad theatrical release," Sarandos said this week at the 2026 Bloomberg Screentime event, as reported by Deadline.
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Netflix showed a sing-along version of the first film for two days in movie theaters and saw a gross of around $19 million. And that was without AMC Entertainment Holdings (NYSE:AMC) taking part, as it boycotted Netflix over disagreements about the past 45-day movie theater window for films.
Netflix is making nice with AMC and other movie theaters with upcoming releases, with several Netflix titles also hitting the big screen. This includes:
- Oct. 16: “La Bola Negra”
- Oct. 30: “Mosquito Bowl”
- Nov. 25: “The Further Mis-Adventures of Cliff Booth”
- Dec. 11: “Ink”
- Feb. 12, 2027: “Narnia: The Magician’s Nephew”
- Nov. 5, 2027: “Charlie vs. the Chocolate Factory”
The release windows vary for the films, with "Mosquito Bowl" getting only 26 days in theaters, while the newest Narnia film will be in theaters for 50 days.
Will Move Help or Hurt Netflix?
The sequel film, expected in 2029, could turn into a licensing smash for Netflix, as the company wasn’t prepared for the success previously in terms of toys and consumer products. It’s also possible that Netflix ends up with a more favorable split of box office revenue in the future than it has before.
But, for a company that counts on recurring revenue from subscribers, there may be some level of risk of playing the film in movie theaters first or simultaneously. In fact, Netflix hasn’t announced what it’s full plans are.
The newest Narnia film will play in movie theaters before hitting Netflix. If Netflix does this, it risks losing much of the early demand for the animated sequel on the streaming platform. Instead, Netflix would be counting on the theatrical revenue to help offset lower viewership and counting on strong repeat viewership that the first film had.
The sequel movie is still years away, giving Netflix time to get this right for its customers, investors and relationships with movie theaters. There’s a chance that one of those three ends up being the loser when the sequel is released.
Photo: Shutterstock
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