Netflix shares closed lower in the US Friday, but are currently poised to open higher Monday amid reports the online streaming service is said to be considering a movie theatre deal to help support its growing original film output.
The news follows Netflix’ decision to withdraw from the Cannes Film Festival in light of the new rule that only films with a cinema release in France were eligible for prizes.
Netflix shares ended the US Friday session 1.48% lower at $327.77. However, the stock is in the green in in pre-market trading.
Netflix considers movie theatre deal
An LA Times article, citing sources, reported that Netflix had been in talks with Landmark Theatres over a deal. However, it’s thought the price was considered too high by the streaming service.
No official comment on the possibility of entering the movie theatre industry has been made by Netflix. However, considering the firm’s original series and film-making ambitions, it’s likely that such a step could be a good decision for the business.
That’s because at the moment, Netflix releases its films on its own streaming platform on the same day a new film might show at a cinema. And that’s not something many movie theatres are willing to sign up for.
In an interview with Variety on the company’s decision to pull out of Cannes, Netflix chief content officer Ted Sarandos said of the Cannes Film Festival situation, that the company wanted fair treatment for its filmmakers.
“We want our films to be on fair ground with every other filmmaker,” Sarandos said. “There’s a risk in us going in this way and having our films and filmmakers treated disrespectfully at the festival. They’ve set the tone. I don’t think it would be good for us to be there.”
Prior to the new Cannes Film Festival rule and Netflix decision to withdraw, Netflix original film “Mudbound” received four Oscar nominations. Although none of them were for the coveted Best Picture award.