Netflix looks to grow box office presence

The addition of box office dollars could be another way for Netflix to grow revenue as its business model comes under fire.

Why it matters: With subscriber losses expected to grow in the next quarter, Netflix is softening up its stance on some of its long-held business beliefs.

Driving the news: Bloomberg reported over the weekend that Netflix is considering giving some of its upcoming movies a sizable exclusive theatrical window, something it's mostly refused to do.

• The two movies being discussed are the upcoming sequel to Rian Johnson's "Knives Out" and Alejandro Iñárritu's "Bardo."

Yes, but: To give either of those films a wide release, Netflix would need to agree to deals with AMC and Cineworld — the two largest theater chains that have so far refused to screen any of the streaming platform's films.

The big picture: As with adding an ad-supporting option, agreeing to a 45-day window would be another example of Netflix relenting on one of its long-standing business practices.

• Netflix has battled with major theater owners for years about its desire for day-and-date releases, which theaters have largely balked at.
• Though the pandemic initially forced many studios — most notably Warner Bros. — to release movies in theaters the same day it was available on streaming, that strategy is going away amid a box office resurgence.

The bottom line: Giving some of its films a proper theatrical run could serve as a marketing tool that prevents those same movies from getting lost in Netflix's expansive catalog.

• But it's an open question as to whether or not Netflix would spend the marketing dollars required to tell its customers to watch a movie in a theater versus on its own platform.