Netflix announced a historic Pay 1 agreement with Sony. The deal gives Netflix exclusive streaming rights after a film finishes its full theatrical and entertainment windows. The contract is worth more than $7 billion. Deadline reports that the overseas portion of the Pay 1 deal will no longer be split among many parties. Sony movies will now flow directly to Netflix once they leave theaters.
Ted Sarandos Addresses Theatrical Concerns
In a recent interview with The New York Times, Netflix chief content officer Ted Sarandos spoke about the company’s plans for the theatrical business. He said many people feel emotional about movies and fear that Netflix wants to end theater showings. He reassured fans that Netflix will keep the current 45 day window.
“I understand that folks are emotional because they love movies and they don’t want them to disappear. We have not tried to make them disappear. When this deal closes, we will own a theatrical distribution engine that generates billions of dollars of revenue. We will run that business much like it is today, with 45 day windows. I want to win opening weekend and box office.”
Sarandos also answered a question about calling the theater model outmoded. He explained that the comment applied only to very small towns where no cinema exists. He noted that his daughter lives in Manhattan and visits multiple multiplexes each week, showing that the theater experience remains vibrant for many.
Streaming and Theaters Work Hand In Hand
Sarandos believes that streaming and theaters complement each other. He said, “You have to give people something to watch. When they get excited about a new release, they will go to the theater. We saw strong box office numbers this year, and we saw fans flock to our Stranger Things finale event and the KPop Demon Hunters experience. If we give people a reason to leave the house, they will gladly do it.”
He added that the myth of competition between streaming and theaters is false. “When you see a good movie in a theater, you often want to watch another one at home afterward. The two formats encourage a love of film,” he said.
Commitment to Movie Fans
Sarandos emphasized that his goal is not to hurt the theater business. “I did not get into this business to hurt theaters. I got into it to help consumers and movie fans,” he said.
The interview shows that Netflix plans to keep the 45 day theatrical window while expanding its streaming library through deals like the Sony Pay 1 agreement. This strategy aims to strengthen both the theatrical and streaming sides of the business.
Source: JoBlo
