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Netflix "Missed a Strategic Opportunity" With 'Irishman' Release, Theater Chief Says - Hollywood Reporter

"They sent a signal to filmmakers that even if you’re Martin Scorsese, you won’t get the wide theatrical release you want through Netflix," says NATO president John Fithian.

On Friday, a week after Netflix gave Hollywood Blvd. an Irishman-themed makeover for the premiere of the film at the TCL Chinese Theatre, Martin Scorsese's epic opens in just eight theaters in New York and Los Angeles.

The National Association of Theater Owners (NATO) is speaking out against the release plan for the 209-minute, R-rated film, saying Netflix erred in not being willing to compromise with two major chains and agree to a more traditional theatrical window. (The Irishman debuts on Netflix on Nov. 27.)

"Netflix is facing a challenge to their business model for the first time and missed a strategic opportunity," said NATO president-CEO John Fithian in a statement to The Hollywood Reporter.

Fithian added, "They are competing now for subscribers and filmmakers with companies with deep pockets, deep libraries and multiple ways to reach consumers. They sent a signal to filmmakers that even if you’re Martin Scorsese, you won’t get the wide theatrical release you want through Netflix."

Since it began producing original movies several years ago, Netflix has insisted on making those titles available almost immediately to its subscribers. However, most theater circuits won't carry a film that isn't exclusive to cinemas for roughly three months (it's closer to 72 days for digital sell-through).

Earlier this year, Netflix and Scorsese himself engaged in extensive talks with AMC Theatres and Cineplex about carrying The Irishman. Sources say the two chains were willing to consider collapsing the window to 60 days, provided that Netflix commit to a major marketing spend and to a more generous split for the theater companies.

Netflix is hardly the only company that is frustrated with windows, since many movies fall by the wayside in a few weeks. The streamer, however, would only consider a 30-day or 45-day window, and the talks collapsed.

Fithian went even further in an interview with The New York Times for a Friday story, calling the end result of the negotiations "a disgrace."

This weekend, The Irishman debuts in New York City at the IFC Center, Broadway's Belasco Theatre and the Landmark at 57 West. In Los Angeles, it will play at the Regency Village Theatre, Hollywood Laemmle, The Landmark, Alamo Drafthouse Cinema Downtown and at The Egyptian Theatre (which Netflix is in the process of buying). 

Next week, the movie will expand into additional markets in the U.S. and overseas.

Netflix relies on a patchwork of independent cinemas to carry its films, particularly during awards season. Like the streamer's Roma last year, The Irishman — starring Robert De Niro, Al Pacino and Joe Pesci — has major Oscar ambitions.

On Nov. 6, the company will also unveil another awards contender, Noah Baumbach's drama Marriage Story, in at least five theaters in New York and Los Angeles before it arrives on streaming a month later. 

While 2018's Roma won the best director prize for Alfonso Cuarón and best foreign-language film, it lost the coveted best-picture race, with some attributing that loss to the fact that it didn't have a high-profile theatrical run. 

Per its standard policy, Netflix won't report grosses for The Irishman.

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Netflix "Missed a Strategic Opportunity" With 'Irishman' Release, Theater Chief Says - Hollywood Reporter
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