Netflix Faces Challenges as It Attempts to Secure Box Office Success

Los Angeles, CA — Netflix is encountering difficulties in its latest attempts to make a mark in theaters during December 2025. Their recent release, Rian Johnson‘s Wake Up Dead Man, earned over $4 million during the five-day Thanksgiving frame. Despite achieving a strong audience score of 94%, the film’s performance was disappointing compared to previous titles in the franchise.

The struggles for Netflix began following the box office success of KPop Demon Hunters Singalong, which grossed $19 million over its opening weekend in August. Netflix co-CEO Ted Sarandos stated in an October earnings call that the success was attributed to the film being available on Netflix prior to its theatrical release. However, Netflix’s approach to the theatrical release has been inconsistent, with Wake Up Dead Man facing obstacles due to booking conflicts with major cinema chains like AMC.

Some industry insiders have voiced concerns about Netflix’s commitment to the theatrical experience. AMC CEO Adam Aron and Sarandos remain in a stalemate over the preferred theatrical window, with AMC advocating for a 45-day release period. In contrast, Sarandos insists on a 17-day window for theatrical releases. This dispute may have limited Wake Up Dead Man to smaller theaters and obscure circuits.

Despite good reviews and sellouts at over 500 locations, Wake Up Dead Man could not compete with the franchise’s previous films. For context, Netflix’s Glass Onion: A Knives Out Mystery grossed $13.3 million during the same Thanksgiving period in 2022, while the original Knives Out earned $41.4 million across a wider release in 2019.

The upcoming theatrical release of the Stranger Things series finale on December 31 and January 1 involves an innovative approach. Reservations at AMC cost $20 and provide a concession voucher rather than a traditional ticket, following restrictions on charging admission for such events. This has led to strong sales but raises questions about the overall strategy for Netflix, considering the financial gains primarily benefit the theaters.

The backdrop for these developments includes Netflix’s reported negotiations to acquire assets from Warner Bros. Discovery, which could further shape the company’s theatrical strategy in the future. Cinema executives have expressed skepticism over Netflix’s intentions, emphasizing the need for meaningful theatrical releases and adequate marketing.

As Netflix continues to navigate the complexities of theatrical distribution, it remains to be seen whether it can effectively balance streaming success with box office appeal. Upcoming releases, such as Greta Gerwig‘s $200 million adaptation of Narnia, may offer further tests of Netflix’s commitment to the theatrical experience.