Netflix Lines Up 30 Theatrical Releases for 2027 Amid Streaming Squeeze

Netflix is set to release 30 films in theaters in 2027, matching its 2026 theatrical slate, even as co-CEO Ted Sarandos insists the company remains a streaming-first business. The push comes with the stock down roughly 30% since January and viewership growth stalling.

The streaming giant spent $20 billion on content last year, and Sarandos told investors on Tuesday's third-quarter earnings call that the material should reach subscribers on the platform as quickly as possible. Yet the company is giving Greta Gerwig's "Narnia: The Magician's Nephew" a wide release and a 49-day exclusive theatrical window when it arrives in cinemas in February. An animated film, "Charlie vs. the Chocolate Factory," gets similar treatment.

"Both films have big global IP and big global fandom, so we're very excited about how they'll play out next year," Sarandos said.

What does the theatrical shift mean for Netflix?

Analysts see money on the table. "Theatrical releases are a net positive for reach and streaming demand," Wedbush analyst Alicia Reese wrote in a note Wednesday. "Netflix's more amenable attitude toward exclusive theatrical windows will not only facilitate better relationships with talent, but also add a new revenue stream and build interest in its streaming service."

She argued the major studios' streaming platforms have already proven the point: "theatrical releases don't cannibalize the streaming window, as Netflix fears."

Matthew Condon, equity research analyst at Citizens, told CNBC that theatrical could help Netflix fix a long-standing weakness. "If they really want to build stickier fan bases around some of their [intellectual property], I think theatrical could be a good avenue for them to do that," he said, adding it could also help land top-tier talent.

Sarandos admitted earlier this month that Netflix has lost talent because it would not guarantee wide theatrical releases. The pattern is visible: "Stranger Things" creators Matt and Ross Duffer signed a four-year exclusive deal with Skydance, while producer Shawn Levy left to direct "Star Wars: Starfighter" for Disney.

Who is running content now?

Days before Tuesday's earnings report, Netflix restructured its C-suite. Former Disney executive Peter Rice took over as chief content officer, ousting 10-year veteran Bela Bajaria. The company also dismissed Dan Lin, head of film, according to a person familiar with the matter who spoke on condition of anonymity. That followed layoffs of roughly 1,000 employees, including Lin's deputy Doug Belgrad and independent film director Sheroum Kim. A successor to Lin has not been named.

Executives downplayed the shake-up on the call. "Our business and our business flywheel are working," Sarandos told investors. "There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. ... It's just not growing as fast as it could or as fast as we'd like."

He said the streamer had "some really solid doubles and triples this year," but suggested the company needs more "home runs." One bright spot: the October deal with Disney brought all five Ice Age films into Netflix's top 10. "And by the way, yes, Netflix just plugged a Disney movie on our earnings call. You're welcome, Josh," Sarandos said, nodding to Disney CEO Josh D'Amaro.

Can Netflix actually build a theatrical business?

Netflix's current model is what Sarandos calls "specialty theatrical releasing" — each film gets a bespoke plan. Some play only the minimum runs required for awards eligibility. Others get weekend stints, like "KPop Demon Hunters," which ran in theaters for just two days.

The company has also said it will report box office results for films with longer theatrical windows — a new level of disclosure for the streamer, though standard practice for major studios.

Wells Fargo analyst Steven Cahall told CNBC the operational gap is real. "Going into theatrical isn't quite as easy as I think sometimes folks make it sound," he said. "You have to negotiate with movie theaters, and find spots for your films."

A full commitment needs "a team of people, and you need a pipeline of content that's intended for theatrical release, and you need a marketing department around it," Cahall said. Netflix has also balked at marketing costs that can reach hundreds of millions of dollars per film.

Buying Warner Bros. Discovery's studio assets would have filled that gap, but the deal fell through. Rice, who since 2023 has produced "Saturday Night" and "28 Years Later" and is developing an "Elden Ring" adaptation, could be the missing piece instead.

Without an acquisition, Cahall framed the choice as bigger than scheduling. "So that becomes more of an existential question for Netflix: Is it time to become a media conglomerate rather than being a pure play streaming company?" he said.

How Netflix answers that — and how "Narnia" performs in February — will shape whether 30 theatrical releases becomes the norm or a one-time experiment.