Netflix remains primarily a streaming-first company, emphasizing prompt delivery of content to its subscribers. Despite this, the firm is gradually increasing its theatrical presence, planning approximately 30 releases in 2027, similar to 2026. These include wide releases with exclusive theatrical windows like Greta Gerwig’s “Narnia: The Magician’s Nephew,” which will enjoy a 49-day run starting in February. Netflix is aiming to leverage theaters to boost viewership and invigorate subscriber growth amid recent stagnation and a 30% stock decline this year.

The company recently restructured its content leadership, appointing former Disney executive Peter Rice as chief content officer, while parting ways with longtime executives Bela Bajaria and Dan Lin amid layoffs. These changes seek to enhance content quality, attract top talent, and better execute the content strategy, especially within the U.S. market. Despite these adjustments, co-CEO Ted Sarandos stressed that Netflix’s core business model remains focused on streaming, with theatrical releases complementing rather than fundamentally shifting the company’s approach.

Netflix’s efforts to build stronger intellectual property and maintain industry talent face challenges, with high-profile creators like the Duffer Brothers and Shawn Levy departing for studios offering theatrical distribution. The streamer’s theatrical strategy currently involves bespoke specialty releases—some aimed at awards eligibility, others at limited events—with fewer wide releases compared to traditional studios. Netflix has also begun reporting box office revenues for films with longer theatrical windows, signaling a greater transparency and commitment to this segment.

Transitioning fully into theatrical distribution poses logistical and financial challenges, including negotiating with theaters and investing heavily in marketing, arenas where Netflix has limited infrastructure. The failed bid to acquire Warner Bros. left Netflix without a ready-made theatrical arm, raising questions about how it will scale this business alongside streaming. Industry analysts suggest that embracing a multi-platform strategy involving theaters could compel Netflix to evolve into a broader media conglomerate rather than a pure streaming service.