Are AMC Theatres and Netflix Reconciling?
It appears that AMC Theatres and Netflix are mending their relationship as AMC has decided to screen “KPop Demon Hunters” in 300 locations. This comes as Netflix re-releases the animated musical hit over Halloween weekend. Normally, AMC, the largest cinema chain globally, avoids showing Netflix films due to disagreements about the exclusive release window for films.
An analyst from Wedbush Securities, Alicia Reese, noted that Netflix’s previous interest in theatrical releases was primarily for awards recognition and accommodating talent. Now, the streaming giant seems more focused on maximizing its audience reach.
With box office figures down 20% compared to pre-pandemic levels, no theater can afford to miss out on a blockbuster. AMC notably did not screen “KPop Demon Hunters” in August when Netflix released a sing-along version, but the film performed well, earning about $18 million to top the weekend box office.
While AMC previously showed limited interest in collaborating with Netflix, the need for content has changed that stance. The only film from Netflix shown at AMC was Rian Johnson’s “Glass Onion.” Recently, AMC started adopting a friendlier approach, highlighting potential collaborative opportunities, including a two-hour “Stranger Things” finale set to debut in AMC theaters coinciding with its online release.
Netflix’s newfound interest in theaters is thought to stem from the realization that theatrical releases often have lasting cultural impact, coupled with recent losses of projects and talent to competing studios. Unlike traditional studios, Netflix views theater releases more as marketing tactics to engage fans of its properties than as financial strategies.
While AMC and Netflix are exploring potential collaborations, such as Greta Gerwig’s “Narnia” project, not every film from Netflix will receive a theatrical boost. For instance, “Wake Up Dead Man: A Knives Out Mystery” is only scheduled for a limited awards qualifying run rather than a broader release.
Netflix CEO Ted Sarandos has previously dismissed the significance of the theatrical experience, and his company’s strategy continues to emphasize exclusive releases on its platform. Therefore, theater operators don’t expect Netflix to fully embrace theatrical distribution like Amazon MGM does. Rather, Netflix will remain selective about its theatrical offerings, providing favorable terms for theater chains to screen its films.
