Netflix to put “Knives Out” sequel in theaters before streaming

Catch up quick: The first film, which was distributed by Lionsgate, had a traditional theatrical release on Thanksgiving 2019 and premiered on Netflix in 2020.

• The streamer outbid other traditional studios, paying a reported amount of roughly $400 million for the film's two sequels. Director Rian Johnson and producer Ram Bergman owned the film’s rights.

Details: "Glass Onion: A Knives Out Mystery" will premiere first in 600 theaters around the country for a limited theatrical debut period of just one week from Nov. 23-29, a month ahead of its Netflix streaming debut on Dec. 23.

• In a statement, AMC Theaters said the film will also appear in select locations abroad through its subsidiary Odeon Cinema Group.

Be smart: Striking agreements with major theater chains is an important feat for Netflix considering the contentious relationship the streamer has historically had with some of the bigger exhibitors.

• A few years ago, Netflix tried to air its Academy Award-nominated film "The Irishman" in AMC and Regal Cinemas, but ultimately failed to strike a deal with the two theater chains. They reportedly demanded that Netflix commit to a theatrical exclusivity window of at least 60 days. Netflix wanted 45 days.

Yes, but: The theater chains have good reason to take any small win that they can.

• The box office is down 34% in ticket sales this year compared to 2019, as it continues to rebound from pandemic-driven shifts to streaming. September was a particularly bad month for theaters.

The big picture: The streamer for years resisted monetizing its content in places outside of its service. But facing pressure from Wall Street, Netflix is changing its business strategy to look more like a traditional media company.

• After years of resisting ads, the company now plans to launch an ad-supported streaming tier later this year.

What's next: Box office tickets for the new "Knives Out" sequel go on sale Oct. 10.