Netflix's $320M Electric State Flop Reveals Major Problem

When Netflix's $320 million sci-fi epic The Electric State crashed and burned with a 30 Metacritic score and 14% on Rotten Tomatoes, it was not just another streaming flop, it was a wake-up call about a distribution strategy problem. The film's dismal reception sparked industry confusion about Netflix's filmmaking efforts, and the confusion is justified. Here is a streaming giant that can make genuinely great films like The Irishman, Roma, and All Quiet on the Western Front, yet the typical Netflix film scores well below the platform average for theatrically released movies. The question is not whether Netflix can make good movies. It is whether those movies deserve the cultural impact that comes from a proper theatrical experience, and what that means for your viewing and the future of cinema.

The path forward: embracing theatrical as amplification, not competition

Bottom line, Netflix does not have to choose between streaming and theaters. Theaters can amplify streaming success. Gamble mentioned that theatrical creates a bigger promotional impact, elevates consumers' desire to see films, builds bigger brands and cultural moments, delivers longevity and remembrance, and value for assets.

The market keeps shifting. The number of families having at least one streaming subscription has gone up to 55% at present, which was just 10% in 2019, while box office revenue has reduced by 4% in 2019 to $11.4 billion. This is not zero-sum, it is an opening for smarter distribution that maximizes both sides.

Think of the Disney playbook. Build must-see theatrical events that heat up the culture, then ride that heat on streaming. A strong run in theaters becomes the best marketing campaign for the at-home debut, creating urgency and social currency that pure streaming drops rarely capture.

Netflix is experimenting with other distribution approaches, including a variety of live presentations, which shows a willingness to move beyond the default model. The Narnia rollout could be the test that flips the switch, proving that the best movies deserve the best presentation wherever audiences show up.

PRO TIP: Watch how Narnia performs both theatrically and on streaming. If it hits on both fronts, expect Netflix to lean into what the data has been signaling all along, great movies deserve great presentations, and theaters remain the ultimate stage for cinematic storytelling. The future of film distribution is not about choosing sides, it is about creating cultural moments that echo from IMAX screens to living room TVs, maximizing immediate impact and long-term legacy.