On Tuesday, AMC Entertainment Holdings Inc. AMC CEO Adam Aron said that the world's biggest streamers are rethinking their approach to the big screen—Apple Inc. AAPL and Amazon.com, Inc. AMZN are fully on board, but Netflix Inc. NFLX still needs convincing.
What Happened: "There are streamers and then there are streamers," Aron said during AMC's fourth-quarter earnings call.
The CEO noted that both companies have shown enthusiasm for theatrical distribution, with Amazon significantly expanding its distribution team to boost film releases.
Apple is also gearing up for the release of the movie “F1,” directed by Joe Kosinski and starring Brad Pitt, which is expected to be a major hit.
See Also: Netflix Bets Big On Mexico: Plans $1B Investment To Supercharge Local Productions
Aron said that the industry is recognizing the value of theatrical releases, as movies that perform well in theaters often become popular on streaming platforms.
He stated that while Apple and Amazon are embracing this trend, Netflix has been less enthusiastic. "We would love to be able to convince Netflix that embracing theatrical releases is good for them."
He pointed out that Netflix had previously tested the waters with "Glass Onion" and now "Narnia," which will screen on IMAX Corp. (NYSE: IMAX0 screens.
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Why It Matters: In the fourth quarter, AMC reported revenue of $1.31 billion, surpassing the consensus estimate of $1.3 billion.
While AMC CEO seems to be encouraging streamers and theatres collaboration, Netflix co-CEO Ted Sarandos last year said that blockbuster films like “Barbie” and “Oppenheimer” would have been equally successful on their platform.
His statement sparked a debate about the role of theaters in a streaming-dominated era.
In October also, Sarandos defended Netflix’s strategy of largely bypassing theatrical releases saying, "I'm just going to reiterate, we are in the subscriptions streaming business, and you can see our results. It's a pretty good business and it appeals to a very large segment of consumers and fans."
In January 2025, Netflix reported fourth-quarter revenue of $10.25 billion, marking a 16% year-over-year increase and exceeding the Street consensus estimate of $10.11 billion.
Price Action: In after-hours trading, AMC stock rose 0.91% to $3.30. Earlier on Tuesday, it closed at $3.27, down 2.68% for the day. Meanwhile, Netflix stock edged up 0.13% in after-hours trading after closing at $977.24 on Tuesday, reflecting a 1.14% decline for the day, according to data from Benzinga Pro.
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