Netflix's eventful week as it competes with Warner Bros: Success of 'Stranger Things' finale and disappointment of 'Wake Up Dead Man'

Netflix has experienced a rollercoaster week in cinemas while pursuing a potential acquisition of Warner Bros. Discovery, which could test its commitment to theatrical releases. The streamer saw mixed results with Rian Johnsons Wake Up Dead Man: A Knives Out Mystery, which earned just over $4 million during the five-day Thanksgiving period, contrasted with strong pre-sale numbers for the New Years Eve theatrical event of the Stranger Things series finale.

Netflixs theater strategy has sent mixed signals. Following the success of its first box office #1, KPop Demon Hunters Singalong, which earned $19 million over two days in late August despite not being screened at AMC, co-CEO Ted Sarandos emphasized that Netflix aims to deliver exclusive first-run movies on its platform. The success of KPop Demon Hunters was largely attributed to its streaming-first approach. Box office figures reported here are industry-verified estimates, as Netflix does not release its own data.

A month after this success, Netflix made a play for Warner Bros., including promises to release films theatrically. However, the rollout of Wake Up Dead Man did not meet expectations, while anticipation builds for the Stranger Things finale, which is being shown in theaters at no cost to audiences.

Wake Up Dead Mans Struggles

The $4 million gross for Wake Up Dead Man and a $6,600 per-theater average fell short compared to the 2022 release of Glass Onion: A Knives Out Movie, which earned $13.3 million at 696 theaters over the same Thanksgiving frame. By comparison, the original 2019 Knives Out made $41.4 million over five days.

Despite strong reviews (92% on Rotten Tomatoes) and sold-out screenings at over 500 locations, the film suffered due to limited access to major theater chainsAMC, Regal, and Cinemarkwhich required a 30-day window instead of the 17 days Netflix offered. This left the film primarily in arthouse venues and smaller chains. Additionally, Netflix did not run a theatrical marketing campaign comparable to Glass Onion.

Director Rian Johnson expressed frustration over the limited release, while insiders noted that the 17-day window aligns with Netflixs other awards-oriented films. Extending the window earlier would have conflicted with audience expectations for a Thanksgiving release, a key franchise period.

AMC and Netflix remain at odds over theatrical windows. AMC favors a 45-day window to maximize box office revenue, while Sarandos insists on 17 days. Despite this, theaters reportedly retained favorable terms, earning around 65% of ticket sales for Wake Up Dead Man. Theaters may continue screenings beyond Netflixs December 12 streaming premiere, and additional locations are being added in the coming weekend.

Stranger Things: A Different Approach

The Stranger Things series finale received a two-day theatrical event from December 31 to January 1 in 500 locations, including major chains. Showtimes have been selling out despite the traditionally slow New Years Eve box office. Tickets at AMC cost $20, but this fee goes entirely to concessions rather than box office revenue, complying with talent residual restrictions.

This method mirrors other episodic TV theatrical releases, where revenue is driven by concessions rather than ticket sales. The event highlights how Netflix leverages theaters for fan experiences rather than traditional box office gains.

Industry Concerns Over Netflixs Expansion

The potential acquisition of Warner Bros. Discovery raises questions about Netflixs commitment to traditional theatrical distribution. Cinema United CEO Michael OLeary cautioned that merely honoring existing contracts does not equate to a true theatrical strategy, which requires a robust slate of films with meaningful exclusivity and marketing support. Paramount CEO David Ellison noted that a combined studio would maintain around 30 annual releases, providing scale for global distribution.

Netflixs potential access to Warner Bros. theatrical infrastructure would significantly enhance its global reach, a capability it currently lacks. The companys next major theatrical test will be Greta Gerwigs $200 million Narnia, set for a global IMAX release in 90 countries with a 28-day theater window prior to streaming.

Author: Logan Reeves