Landmark Theatres, an art-house movie screening chain of theatres in NY and Los Angeles, has been on the market for a while and has caught the attention of Byron Allen's Entertainment Studios and Netflix. Reports said that Netflix's interest in movie theatres is not limited to buying Cuban's company specifically, but it is considering to buy theatrical space.
Despite Netflix's recent success, the company feels that it is not getting the respect it deserves when it comes to films. While the sources may indicate that Netflix killed the deal, it is important to note how the streaming service could impact the entertainment business, from a digital transformation standpoint in the future.
That has led to Netflix's films being deemed ineligible to compete at the Cannes film festival, since all contenders for prizes need to receive a theatrical release in France. Netflix which has approximately 125 million subscribers, which ranks it ahead of its competitor such an Amazon (which has nearly 100 million total Amazon Prime subscribers), and Hulu.
While this round didn't work out, it seems safe to say that Netflix is looking for ways to extend its reach and influence.
When Netflix made a decision to pull the five films it had planned to debut at the Cannes Film Festival, it was the culmination of a year's worth of tension between the two giants, which started when Netflix's mere logo was booed at last year's festival. Major theatre chains won't release a movie which was simultaneously streaming on Netflix. Netflix could not only guarantee a theatrical release, but would also get a much larger slice of the revenue from doing so.