Netflix is breaking its No. 1 rule for Stranger Things and KPop Demon Hunters, and here’s why. Though the streaming service has long been against wide theatrical releases, a sing-along version of KPop Demon Hunters was released in cinemas for two days from August 23–24, which became the No. 1 film at the box office, and will be re-released in theaters over the Halloween weekend.
Additionally, it was recently revealed that the two-hour Stranger Things finale will be released in theaters on New Year’s Eve, the same day the episode premieres on Netflix.
Talking to Variety, analyst Alicia Reese, vice president of equity research at Wedbush Securities, explained why Netflix is breaking its No. 1 rule by releasing Stranger Things and KPop Demon Hunters in theaters. In the past, Netflix released movies in select theaters purely to qualify for awards consideration, but now, their goal is to reach a larger audience. Read Reese’s full explanation below:
For a long time, Netflix’s primary interest in getting its movies into theaters was for awards consideration or appeasing talent. Netflix has more interest now in trying to maximize reach.
Netflix has long been against wide theatrical releases. Earlier this year, Netflix CEO Ted Sarandos even described the concept of theatrical releases as an “outmoded idea.” Yet, since that statement, Netflix seems to have shifted its approach. In recent months, a number of Netflix films have been set for theatrical releases.
This lineup includes Guillermo Del Toro’s Frankenstein, which received a limited theatrical release on October 17, and Wake Up Dead Man: A Knives Out Mystery, which is scheduled to be released in theaters on November 26. Both will play in theaters for a limited time before streaming on Netflix on November 7 and December 12, respectively.
Greta Gerwig’s Narnia movie is also set for a two-week IMAX release in 2026. Additionally, Netflix is considering an extensive theatrical rollout for David Fincher’s Adventures of Cliff Booth, the Brad Pitt-led spinoff of Quentin Tarantino’s Once Upon a Time in Hollywood.
Netflix seems to be embracing theatrical releases, seemingly reflecting a late realization that movies shown in theaters often have greater cultural impact. However, unlike traditional studios, Netflix doesn’t view theaters as a revenue source. Instead, it’s treating theatrical runs as a marketing tool to energize audiences and ultimately drive them back to the streaming platform.