A significant shift is underway in the long-contentious relationship between AMC Theatres, the world’s largest cinema chain, and Netflix, the biggest streaming service. After years of disagreement primarily over theatrical exclusivity windows, the two giants appear to be bridging their differences, signaled by AMC's agreement to screen Netflix’s animated musical “KPop Demon Hunters” in 300 venues over Halloween weekend. This move marks a departure from AMC’s typical refusal to schedule Netflix films, a stance that has limited the streamer’s cinematic presence to just one prior instance: Rian Johnson’s 2022 “Knives Out” sequel, “Glass Onion.”

The catalyst for this evolving dynamic stems from changing priorities for both companies. For Netflix, the initial drive to get movies into theaters was largely for awards consideration or talent appeasement. However, as analyst Alicia Reese notes, Netflix now has a greater interest in maximizing reach. This shift is reportedly influenced by a belated recognition of the cultural staying power theatrical movies tend to have, or a reaction to losing major projects and talent to traditional studios. Netflix views multiplexes not as a primary financial strategy but rather as a marketing stunt to ignite fandoms of its major properties, ultimately aiming to drive interest back to its streaming platform.

On AMC’s side, the motivation is clear: a desperate need for fresh content. With box office revenues lagging 20% behind pre-COVID levels, no movie theater can afford to turn down potential crowd-pleasers. These one-off events with Netflix can provide additional revenue during slower periods, a crucial benefit for the exhibition industry. The success of “KPop Demon Hunters,” which surprisingly topped the box office with approximately $18 million during its August sing-along re-release—despite AMC being the only major exhibitor not to play it then—underscores the film’s drawing power.

Beyond “KPop Demon Hunters,” further collaborations are on the horizon. Netflix has arranged for the two-hour “Stranger Things” finale to debut in AMC theaters and other locations on New Year’s Eve and New Year’s Day, coinciding with its streaming release. Discussions are also underway for potential wider theatrical rollouts for future Netflix projects, including Greta Gerwig’s 2026 “Narnia” adaptation, which is already slated for a two-week exclusive IMAX run, and David Fincher’s “Adventures of Cliff Booth,” a Brad Pitt-led spinoff eyeing a summer 2026 launch. However, theatrical plans for these films won't be finalized until closer to their release dates.

Despite this apparent rapprochement, it's crucial to understand that Netflix is not making a full-throated embrace of the big screen akin to Amazon MGM, which commits to 15 theatrical films annually. Netflix CEO Ted Sarandos has reiterated that the company’s core strategy remains providing exclusive first-run movies on Netflix, and earlier dismissed the communal cinema experience as an “outmoded idea.” Therefore, exhibitors do not expect a traditional theatrical slate from Netflix. Instead, the streamer will be selective, focusing on promotional efforts tied to properties with built-in fan bases. Not every commercial property will receive a wide big-screen boost; for instance, “Wake Up Dead Man: A Knives Out Mystery” will only get an awards qualifying run due to unfinalized plans for a larger rollout.

To incentivize exhibitors, Netflix offers more favorable terms than traditional distributors, often allowing theaters leniency in scheduling, unlike major studios that require new releases from dawn until dusk. While Hollywood studios cautiously welcome Netflix's acknowledgment of theatrical, they remain vigilant, hoping the streamer doesn't monopolize coveted premium large formats or prime release dates, thus stepping on the toes of studios committed to year-round exhibition.