Netflix might put Greta Gerwig’s ‘Narnia’ in Imax theaters. Will it create a streaming blockbuster? – The Mercury

By Wendy Lee and Samantha Masunaga, Los Angeles Times (TNS)

LOS ANGELES — When Netflix releases big movies, even the ones that resemble Hollywood blockbusters, its approach is consistent: Get people to watch them on the streaming service, not in theaters.

In the cases where Netflix does put its films in cinemas, it does so in a limited fashion, primarily to build buzz or get awards consideration.

Could Netflix be poised to make a big exception?

The Los Gatos-based streamer is in early talks with cinema tech provider Imax Corp. to bring its upcoming adaptation of “The Chronicles of Narnia” to its giant screens, according to people familiar with the matter who were not authorized to comment. The highly anticipated movie is based on the popular C.S. Lewis novels and directed by “Barbie” co-writer and director Greta Gerwig.

Discussions between Netflix, Imax and Gerwig, who has been a driving force on the issue, are preliminary at this stage, the people said. A deal may not happen. If an agreement solidifies, it would be Imax’s first deal for a theatrical window for a Netflix feature film.

The talks represent a potentially delicate balancing act for Netflix.

Netflix wants to work with the best filmmakers in the business, and many of them, including “The Irishman” director Martin Scorsese, want their movies shown on the big screen. But Netflix’s priority is its streaming service, which has nearly 283 million subscribers globally and generates billions of dollars in annual subscription revenue. Whenever Netflix executives are asked about whether they’ll do more in theaters, the response is the same: They like their streaming-first model.

Netflix and Imax declined to comment.

The discussions were earlier reported by Bloomberg and Puck News’ Matthew Belloni.

Some analysts and industry observers have been critical of Netflix’s movie strategy over the years, arguing that its films have struggled to enter the cultural zeitgeist in the way its TV shows have. Some felt Netflix left money on the table by only showing “Glass Onion: A Knives Out Mystery,” Rian Johnson’s sequel to his popular murder mystery “Knives Out,” in just 700 theaters for a few days in 2022 before it became available for streaming.

Traditional movie studios put their movies in theaters for weeks and sometimes months before making them available for home viewing. When big studio movies are released early for digital consumption, it’s often as a $25 rental.

It also can be hard for a movie to break through the streamer’s large library of content. Netflix’s top movies of all time are action flick “Red Notice,” dark comedy “Don’t Look Up” and sci-fi movie “The Adam Project,” all movies released two or three years ago. Recent hits on the platform include Jeremy Saulnier’s “Rebel Ridge,” a relatively low-budget thriller. Netflix also does well with movies it licenses from other studios, including Universal Pictures.

“They’re trying to play catch-up with movies, and they’re 100 years behind,” said Michael Pachter, research analyst at Wedbush Securities. “And they’re never going to catch up.”

While Netflix has won a significant number of awards for its films, it has yet to win an Academy Award for best picture. It bought and restored the Egyptian Theatre in Hollywood from the American Cinematheque in an effort to win over cinephiles and filmmakers. Netflix also owns the Bay Theater in Pacific Palisades, where it screens its own movies.

“Some of these films, in the context of that massive bandwidth of Netflix, you’re like a drop in the ocean,” said Paul Dergarabedian, senior media analyst at Comscore. “When a movie is in a movie theater, you’re not competing with unlimited hours of content, unlimited titles on a small screen you can scroll through.”

Domestic theatrical revenues are down significantly from pre-COVID-19 levels. But last year, movies like “Barbie,” “Oppenheimer” and romantic comedy “Anyone but You” received a significant boost in theaters as audiences kept coming through word-of-mouth and the hype of social media. Particularly with “Barbie,” fans dressed in pink to see it in theaters, making it an event.