Netflix plans to enter the cinema business, according to the Los Angeles Times. They got wind of it that Netflix was negotiating with Mark Cuban to take over his Landmark Theaters. At first glance, it might seem bizarre for Netflix to do that, but there is some logic in it.
The problem: no cinema wants to show movies from Netflix, because the rule with the streaming platform is that it is possible to stream from day one without exception. Cinemas want exclusivity for a while before people can watch their home suit and since Netflix does not agree with that principle, it stops.
Netflix plans to make 80 films this year alone and if they want to compete for film prizes, there must be cinema screenings. That is an ongoing problem because filmmakers do not just want money to make their films, they also want recognition. If they have to write them off automatically with a Netflix project, it influences their choices, which makes it harder for Netflix to get really good filmmakers and actors for their films.
Buying a series of theatres would at least solve the Oscar problem because then every film can spend its week in the cinema. Even Cannes would have to start twisting around to keep out movies from Netflix, so that is largely tackled. But there is another advantage.
Assuming that there are always people who enjoy seeing a film on a big screen, Netflix can also catch money from the people who watch it with their own cinemas. And it does not just have to be films: some series on Netflix are visually beautiful and deserve a better and bigger screen than the mobile that you probably consume the most. And do not forget: in a cinema you can also just show the last Avengers there is also just people on it.
Assuming that you as a Netflix subscriber comes in cheaper, it is not in the price of admission, but everyone wants to have a drink and a snack during the film, and that can also be earned. If that was not too bad, it would be a kind of break-even proposition for the film giant to run cinemas and before they know it they can take over. Netflix has become an Extremely Important Player in Hollywood and if this plan is real it can also extend to the bios industry.