Netflix’s theatrical strategy may be shifting. Will it work?

Netflix is making itself clear: It’s a streaming-first business.

During the company’s third-quarter earnings call on Tuesday, co-CEO Ted Sarandos reiterated the streaming giant’s long-held stance that its content, which it spent $20 billion on last year, is meant for its subscribers and, therefore, should be delivered to customers on its streaming platform as quickly as possible.

Yet, the company is set to have 30 theatrical releases in 2027, on par with what it brought to cinemas in 2026. And while not all of these features are expected to have wide releases or long runs in theaters, Netflix is testing the waters with projects like Greta Gerwig’s “Narnia: The Magician’s Nephew,” which will have a wide release and a 49-day exclusive theatrical window when it hits cinemas in February.

The company seems poised to carve a new path forward as it grapples with viewership stagnation and a stock slump of roughly 30% since January.

How its theatrical ambitions fit into a streaming-first strategy remains a question mark.

“Theatrical releases are a net positive for reach and streaming demand,” Alicia Reese, analyst at Wedbush, wrote in a note Wednesday. “Netflix’s more amenable attitude toward exclusive theatrical windows will not only facilitate better relationships with talent, but also add a new revenue stream and build interest in its streaming service. This follows the pattern we have seen with the major studios’ streaming platforms over the past several years: theatrical releases don’t cannibalize the streaming window, as Netflix fears.”

Ahead of its Tuesday earnings report, Netflix restructured its C-suite, bringing in former Disney executive Peter Rice to take over as the company’s chief content officer, ousting 10-year veteran Bela Bajaria.

Netflix also dismissed Dan Lin, the company’s head of film, according to a person familiar with the matter who spoke on the condition of anonymity to discuss internal changes. That came just days after it laid off roughly 1,000 employees including Lin’s right hand Doug Belgrad as well as Sheroum Kim, the director of independent film, according to various media reports. It’s unclear who Netflix will tap to take over Lin’s position.

The company aims to restore quality to the brand and utilize Rice’s expertise in talent relations to lure big names in an increasingly competitive market.

Still, Netflix executives seemed to downplay the change in leadership during the company’s earnings call.

“Our business and our business flywheel are working,” Sarandos told investors during the company’s earnings call. “There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. … It’s just not growing as fast as it could or as fast as we’d like.”

Sarandos said the streamer had “some really solid doubles and triples…