Trying to win over Tinseltown? Netflix in talks to buy the historic Egyptian Theater after Hollywood called for the streaming giant to be BANNED from the Oscars
- Streaming giant Netflix is reportedly in talks to buy the Egyptian Theatre on Hollywood Boulevard
- Egyptian is the site of the first-ever Hollywood premier in 1922, when the film Robin Hood debuted
- Netflix reportedly plans to use the venue to host premieres and other events
- In January, streaming giant joined Motion Picture Association of America
- Company has faced resistance from Hollywood film studios and movie theatres because of dispute over 'window' in which films are shown in cinemas
- Netflix nearly upended Hollywood completely in February when its film Roma won a number of Academy Awards, though it did not get best picture
Netflix is reportedly in the process of acquiring the famed Egyptian Theatre in Los Angeles, the latest sign the streaming service is encroaching on territory once controlled by traditional Hollywood.
The streaming giant, which was at odds with legendary director Steven Spielberg over its films' eligibility for Oscars, is currently in negotiations with American Cinematheque, a nonprofit company that owns the Egyptian as well as the Aero Theatre in Santa Monica.
But the acquisition does not signal that Netflix is intent on getting into the business of operating brick-and-mortar theater locations, a source familiar with the discussions told Bloomberg.
Netflix reportedly wants to use the historic theater, which is located on Hollywood Boulevard, to host screenings and premieres.
The Pharoah-themed venue was built in 1922 by Sid Grauman, the Hollywood ‘master showman’ who also founded the famed Chinese Theatre.
Netflix is in talks to buy the famed Egyptian Theatre in Hollywood (seen in the above file photo)
Netflix reportedly wants to use the historic theater, which is located on Hollywood Boulevard, to host screenings and premieres
The Egyptian, which cost $800,000 to build and took 18 months to construct, hosted the first-ever Hollywood premier, Robin Hood, which starred Douglas Fairbanks, in October 1922.
More recently, the Egyptian hosted the Hollywood premier of Roma.
Mexican director Alfonso Cuaron was chosen as best director for Roma, his sentimental black-and-white journey back to his childhood, and the film won two other Oscars, including for best foreign language.
But it failed to win the top prize of best picture, which went to Green Book, despite a massive $30million public relations blitz by Netflix.
Buying the Egyptian is the latest sign that Netflix is intent on strengthening its ties to Hollywood.
In January, Netflix joined the Motion Picture Association of America, Hollywood’s trade association which represents the five major film studios - Paramount, Sony, Universal, Walt Disney Studios, and Warner Bros.
The streaming company has run into resistance from the traditional power centers in Hollywood who view it as a threat to their business model.
Last week, movie theater owners converged on Las Vegas for their annual convention.
Netflix was a big winner at this year's Academy Awards thanks to Roma. Mexican director Alfonso Cuaron was chosen as best director for Roma, his sentimental black-and-white journey back to his childhood, and the film won two other Oscars, including for best foreign language
The hot topic of conversation at the meeting was Netflix.
The world’s most successful streaming service sends some movies to theaters but has insisted on making them available on Netflix at the same time, or just a few weeks later.
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That has upset big movie chains, which refuse to show Netflix films and want a longer ‘window’ of time to play films exclusively.
The issue of how Netflix fits into, or threatens, the theater business dominated a press conference on Tuesday at CinemaCon, the theater industry trade show.
'All of your questions from the first 17 minutes or whatever are about Netflix,' grumbled John Fithian, president and chief executive of the National Association of Theatre Owners.
Famed director Steven Spielberg has said Netflix films should not be eligible for Academy Awards
He insisted that Netflix and theaters can happily co-exist, citing data that showed the biggest consumers of streaming video visit theaters more often.
He also said Netflix had helped revive interest in documentaries, which had helped draw people to theaters to see them.
Earlier, Fithian told a crowd in a Caesars Palace theater that films reached their full potential only with a 'robust theatrical release.'
He spoke just after Crazy Rich Asians director Jon M. Chu said his film would not have had as big an impact if it had debuted on a streaming service.
Some members of the Academy of Motion Picture Arts & Sciences, the group that hands out the Oscars, have been debating whether films must play in theaters for a specific length of time to compete for the awards, which could exclude Netflix or force the company to agree to longer exclusive theatrical runs.
Spielberg, the blockbuster director, has said that he didn't believe Netflix films should be eligible for Academy Awards because they are not screened in cinemas for a sufficient period of time.
Viewing Netflix, as well as other streaming services such as Hulu and Amazon, as television platforms, Spielberg, who is on the board of governors of the Academy of Motion Picture Arts and Sciences, told ITV: 'Once you commit to a television format, you’re a TV movie. If it’s a good show, you deserve an Emmy. But not an Oscar.'
He added: 'A lot of studios would rather just make branded, tent-pole, guaranteed box office hits from their inventory of branded successful movies than take chances on smaller films.
'Those smaller films that studios used to make routinely are now going to Amazon and Netflix.'
Spielberg's position has generated backlash among fans of Netflix, who say that the streaming service offers a platform for creative works from minority and women filmmakers who have not been given opportunities by the established film studios.
Hollywood publication Variety reported on Tuesday that the Department of Justice had weighed in on the issue.
Antitrust chief Makan Delrahim sent a letter to the academy warning that any changes that limited eligibility for the industry’s highest honors 'may raise antitrust concerns,' according to Variety.
An academy spokesperson confirmed it had received the letter and said any rule changes would be considered at an April 23 meeting.
A source close to Netflix said the company was not involved with or aware of the Justice Department’s letter.
