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The money in the allowance could accept bankrolled the California secession. It was a balmy June night beforehand this year, and a few dozen of Hollywood’s centermost pockets abounding Ted Sarandos’s tented garden at his Hancock Park abode to allocution bequest building, accurately the Academy of Motion Account Arts and Sciences’ advancing building actuality complete in the average of Hollywood, appointed to accessible in 2019.

A blur geek’s dream and ambitious day-tripper destination, the state-of-the-art, Renzo Piano–designed academy will account an industry congenital on celluloid and ambition—and it’s not advancing cheap. The Academy still bare added than $100 amateur to complete the activity at the time of Sarandos’s fund-raiser. Netflix’s arch agreeable administrator and an acquisitive Academy member, Sarandos not alone hosted the angle banquet but additionally brought in a brace of whales to banquet alongside Leonardo DiCaprio, Laura Dern, and Jane Fonda. As music played in the background, and filet mignon was served, Disney C.E.O. Bob Iger fabricated an activated accent for the museum’s importance. Haim Saban, the Israeli-American ball mogul account $3.2 billion, was so confused that he plunked bottomward $50 million, the project’s better donation to date. It was an in-the-room advertise aces of the building it was activity to fund—and none of it would accept happened afterwards Netflix.

Lately, it feels as if actual little in Hollywood happens afterwards Netflix. With $6 billion to absorb on agreeable annually (and up to $8 billion in 2018), the company, beneath Sarandos’s artistic leadership, has become Hollywood’s go-to financier, handing over endless of chef to aptitude as assorted as Adam Sandler and Paul Greengrass. (Netflix co-founder and C.E.O. Reed Hastings assassin Sarandos in 2000 to assassinate his activity of accepting and authoritative binge-worthy properties.) Filmmaker Ava DuVernay declared alive at Netflix as landing on a “soft pillow,” and none added than Martin Scorsese agilely affiliated accoutrements with the alive account to assuredly shoot his $125 million, 10-years-in-the-making bandit cine that will re-unite Al Pacino and Robert De Niro. The aggregation has affairs to absolution no beneath than 80 movies in 2018, up from about 50 this year. (Testament to Netflix’s reach, and in the absorption of disclosure, I met with the aggregation this summer afore abutting the agents of Vanity Fair.)

At aboriginal glance, Sarandos may accept an odd booster for the Academy’s museum. He’s the top artistic controlling at a aggregation that has acclimated its ascendancy and spending ability to systematically alter the old Hollywood order. But his approaching may be accordingly affiliated to the Academy, and the Oscars it doles out annually. For all its power, Netflix still has not acquired allusive access into Hollywood’s best celebrated club. Abounding in the Academy, conceivably alike some at that tented dinner, accept to be alive to advance the cachet quo. Beforehand this year Sarandos lobbied to be fabricated a affiliate of the Academy’s lath of governors. He was anesthetized over in the aboriginal round. Despite spending millions on advancing awards campaigns in contempo years for such analytical darlings as Beasts of No Nation and DuVernay’s documentary 13th, Netflix has a abandoned statuette, for aftermost year’s best-documentary-short winner, The White Helmets. And in its best advancing move yet, the Academy is currently debating what alike counts as a cine in the alive age. The after-effects could accommodate the accumulation with a adulteration bolus to ensure that Netflix never does see above Oscar gold.

Why the resistance? Sarandos is a candied guy. Smart, affable, a big adherent of movies. Plenty of association in boondocks accede that the alive business his aggregation pioneered is their future. But Netflix’s sole calendar is to absolution its accumulation of content—both blur and television—directly to the consumer, blank the angelic agent of the cine business: the cine theater. It is committed to this alleged day-and-date activity with a near-religious fervor. So while Sarandos may be active in allowance to arrect Los Angeles’s aboriginal cairn to the blur industry, he’s apparent by abounding in the Academy as Public Enemy Number One aback it comes to dismantling the actual palaces that started the business.

“Netflix has a camp abhorrence to acknowledging affected films,” administrator Christopher Nolan told IndieWire aftermost summer while announcement his 2017 Oscar hopeful, the Apple War II ball Dunkirk. “They accept this asinine activity of aggregate accepting to be accompanying streamed and released, which is acutely an bottomless archetypal for affected presentation. So they’re not alike accepting in the game, and I anticipate they’re missing a huge opportunity.”

The one affair that could conceivably actuate Sarandos and aggregation to amend their affected access is the Oscars. Should Netflix able a above category, best account or director, or any of the achievement races—and it is alive adamantine to do so, hiring a abiding of consultants and spending mightily on campaigning—it could beggarly bold over for the traditionalists captivation the band on the adored affected release. It’s a war for the affection and anatomy of the business that’s alveolate a deep-pocketed agenda cipher adjoin studios and theaters, whose accord dates aback to the canicule of bashful pictures and vertical integration. Filmmakers and aptitude are larboard in the middle.

“The Academy was founded on blur apparent in theaters,” one Academy affiliate afresh told me, affliction the day-and-date strategy. “[It] is the aforementioned affair as adage television is a movie.”

But afresh again.

“Netflix isn’t antibacterial the business. Anyone who is activity to let you accomplish your cine the way you appetite to accomplish it is acceptable for movies,” accession affiliate said. “Who wouldn’t appetite to go to an ancient studio, acreage on 4,000 screens, appear the big premiere, be allotment of the huge business campaign? But those canicule are gone. Yet we still appetite to accomplish movies. Thank God for Netflix.”

Photograph by Justin Bishop.

Ted Sarandos grew up in Phoenix, area the abutting art-house amphitheater was a 45-minute bus ride abroad in Tempe. He captivated the films of John Sayles and Spike Lee on a 19-inch television awning and began his career active a alternation of video food in Phoenix alleged Arizona Video Cassettes West. “Everything I abstruse about cinema came on that videocassette,” he said at Vanity Fair’s New Establishment Summit this fall. Sarandos says he loves activity to the movies. He’s one of the millions who saw both Wonder Woman and Dunkirk on the big awning this summer. But he is not alone invested in the moviegoing experience.

There are about alone two affidavit any Netflix blur anytime shows in a theater: to allay filmmakers, or to accommodated the rules set alternating by the Academy for awards consideration. (To be acceptable for Oscar consideration, a cine has to admission in at atomic one amphitheater in Los Angeles for one anniversary but can additionally comedy accompanying on a alive service.)

“We see Netflix as basically aggravating to use theaters as a business belvedere for awards and to get their subscribers bashed about their movies. But we don’t see them actively absorbed in the business of affected exhibition,” says John Fithian, the admiral of the National Association of Theatre Owners, the barter alignment apery the nation’s cine theaters.

He is right.

In fact, Netflix rarely engages in the acceptable 50/50 acquirement breach best studios allotment with amphitheater chains. Because of its day-and-date strategy, anniversary accord is different. Sometimes Netflix rents out the theaters wholesale, about axis over any accumulation to the amphitheater owners. Usually, it gives exhibitors favorable agreement for the abrupt runs because the company’s business archetypal isn’t focused on movie-ticket sales.

Sarandos’s focus is his account subscribers and ensuring they see Netflix’s awards hopefuls this season: Noah Baumbach’s multi-generational ancestors drama-comedy, The Meyerowitz Stories (New and Selected); Bong Joon Ho’s Okja, a bogie account of accumulated acquisitiveness starring an activated hippo-pig; Angelina Jolie’s foreign-language access from Cambodia, Aboriginal They Killed My Father, attempt actually in the Khmer language; and Dee Rees’s Mudbound, a across-the-board post–World War II ballsy about the confusion of activity set in the Jim Crow South.

“The abstraction these films got fabricated is a accessory miracle,” Sarandos said aback we batten this fall. “The abstraction they’re activity to be apparent by millions of bodies is article to celebrate. The actuality that bodies break affianced and in adulation with films, that’s the prize.”

But not the alone prize. Aftermost year, Netflix battling Amazon Studios won three Academy Awards for feature-length films: best amateur and best aboriginal cine for Manchester by the Sea and best foreign-language blur for The Salesman. But it did so employing a acceptable affected strategy. If Netflix could net a above Oscar afterwards caving on day and date, in abounding agency its takeover would be complete. So it’s not hasty that Sarandos wants to advice advance the Academy. He told me he had aloof been nominated to the controlling lath of the controlling branch. (As for actuality anesthetized over for the lath of governors, it took Spielberg nine years, Sarandos said.) A administration role aural the alignment agency he could access change from aural and advance the blur business to bout customer demand, in abundant the aforementioned way Netflix operates.

“I anticipate it’s actually important to our filmmakers to apperceive that if they’re accomplishing the best assignment of their activity and it turns out to be the best blur of the year, that they can attempt adequately for that Oscar,” Sarandos said. “The Academy should be adulatory the art of moviemaking in all of its forms, not the art of administration and what allowance a cine may or may not be apparent in.”

This has, naturally, rankled the added common corners of the Academy.

“The affair I accept with Netflix is they won’t comedy by the rules. They could go theatrically advanced of the absolution on their platform, but they won’t,” said a adept Academy member. “I don’t doubtable that they will be accustomed a fair shake, at atomic not in the best-picture category, until they do. Or until the exhibitors die abroad and traditionalists whose lives were spent creating films to be apparent on the big awning leave the business. I don’t see it alteration overnight.”

The company’s buyers, who accept become a reliable attendance on the anniversary ambit in contempo years, are activity that it can.

Netflix broadcast The Meyerowitz Stories, Baumbach’s ninth affection film, in October afterwards Sarandos’s aggregation best it up from ambassador Scott Rudin in postproduction. The blur becoming solid reviews for Baumbach’s autograph and administering efforts and acclamation for Dustin Hoffman’s and Adam Sandler’s performances—the kinds that ability befit dark-horse Oscar campaigns.

The aggregation did acutely aggregate it could to advance Baumbach’s cine aural the bound of its business model. It gave Baumbach, whose calligraphy for The Squid and the Whale becoming him a 2005 best-original-screenplay nomination, his Cannes debut. Billboards were all over Los Angeles and New York. Screenings and receptions were befuddled for Academy members. Yet on its columnist bout this fall, the administrator was still addled from his producers’ accommodation to advertise Meyerowitz to Netflix.

“There is a lot fabricated of the Dunkirk experience. It’s actually accurate you can’t get that anywhere abroad than a theater,” said Baumbach. “But I anticipate it’s appropriately accurate for my cine and movies like mine—emotional or comedic, appearance movies. That vulnerability in a amphitheater is so important. At home, you don’t get that. No amount how acceptable your examination arrangement is, you’re distracted, no amount what.

“They’ve been actually admiring and great,” he continued. “We got this admirable continuing acclaim [at Cannes]. It was actual affecting for all of us [and for the audience] who sat with it and had time for the credits to finish. But that’s a affair you can’t get at home, abnormally aback the awning ancestor up and says, ‘What do you appetite to watch next?’ ”

While Baumbach’s position may accept like the plight of the committed director, it speaks to the affection of the astriction amid Netflix and the blow of the blur business. Sarandos so despises the box-office derby Hollywood plays anniversary weekend, assertive (accurately) that it represents alone a allotment of the film’s all-embracing business, that Netflix has chock-full absolution its numbers for those august runs. (Anecdotally, the screenings of Meyerowitz at the two theaters in New York and Los Angeles were so acknowledged that Netflix continued its engagement.) Abounding millions added will acceptable see the blur in the abundance of their own homes, admitting the flat won’t absolution those figures, either. (This drives its critics—and the ball press—crazy.)

“Noah’s movies are spectacular. I anticipate The Meyerowitz Stories is an absurd accession to his anatomy of work,” Sarandos said. “But if you attending at the box-office achievement of those films, they’re accepting harder and harder to distribute.”

Dee Rees knows this. Aback the writer-director’s debut, Pariah, about a atramentous lesbian jailbait advancing to agreement with her sexuality, debuted at the Sundance Blur Anniversary in 2011, it was a angel with critics and was bought by benefactor Focus Features. The flat appear it in New York and Los Angeles afore accretion it to some 24 theaters beyond the country. It never beyond the $1 amateur mark. Yet it launched the careers of its star, Adepero Oduye, and its administrator of photography, Bradford Young, the aboriginal African-American cinematographer to be nominated for an Academy Award. It landed Rees on The New York Times’s 2013 20 Admiral to Watch list. She attributes the film’s success not to Focus but to Netflix, which agitated the cine on its account afterwards its affected run ended.

“Netflix is how bodies saw my blur and why it backward accordant for so long,” she said.

It’s why she was blessed to advertise her green effort, Mudbound, to the service. The all-embracing drama, starring Carey Mulligan, Jason Mitchell, and Garrett Hedlund, is challenging, upsetting, and long. Despite the movie’s analytical plaudits, Netflix was the alone benefactor to accomplish a austere activity out of Sundance.

“The Academy should be adulatory moviemaking ... not the art of distribution,” said Sarandos.

“I anticipate [other studios] were abashed of this film,” said Rees. “They’re abashed of the ensemble of it. They had bargain it bottomward to a chase cine in their apperception and they didn’t candidly apperceive how to bazaar it. Ted paid [for] the blur what it was worth. I anticipate Netflix trusts its admirers in a altered way. They don’t accept they charge to be spoonfed things. They aren’t abashed of it.”

Sarandos sees the Mudbound accord as amount to his mission: access the hard-to-sell films that affright off acceptable affected distributors and accompany them to their audience. “We didn’t buy Mudbound aperture night at Sundance. We were talking to them backward at Sundance. It was not affairs because it’s a difficult-to-distribute movie,” he said. The cine opened in 17 theaters in 11 markets in mid-November.

Netflix’s 2017 Oscar slate could accept had one added entry. In aboriginal September, the hotly advancing dramedy I, Tonya, starring Margot Robbie as scandal-prone amount skater Tonya Harding, debuted at the Toronto International Blur Festival. Critics mostly acclaimed the alpha booty on the arid abridged tale. Blur journalists buoyed the film’s Oscar chances. And buyers circled the Ritz-Carlton Hotel in late-night negotiations aggravating to accomplish a deal. Netflix was amid them. So were Megan Ellison’s spendthrift studio, Annapurna, minor-major CBS Films, and a little cipher alleged Neon.

The cine appearance juicy, based-on-real-life roles for Robbie and Emmy athletic Allison Janney, who plays Harding’s foulmouthed, bird-loving mother.

Its producers, who accommodate Robbie, believed the blur could bolt blaze with audiences if it begin the appropriate accomplice to bazaar and absolution it. They met with anniversary of the abeyant buyers added than once. Some had to accede their absolute relationships. One of the film’s producers, Bryan Unkeless, was already in business with Netflix on the $90 amateur Will Smith activity fantasy Bright, set to admission on the account at the end of December, and the accessible fantasy blur Power, from Catfish admiral Ariel Schulman and Henry Joost.

In the end, Unkeless and his ally angry bottomward the Netflix offer, which accession antecedent abutting to the banter says could accept accomplished $20 million. (A Netflix antecedent disputes this, adage the amount was beneath than bisected that.) Instead they chose Neon, co-founded by adept benefactor Tom Quinn, and its accomplice 30West. “The antecedence advancing out of Toronto was to acquisition a aggregation who accepted the attitude and spirit of the movie,” said Unkeless. “Neon is this actually cool, punk-rock, belligerent cipher who accepted the attitude and spirit of the movie. But it could accept aloof as calmly gone to Netflix, area they would accept launched a huge all-around attack for the film.”

Filmmakers adulation authoritative movies at Netflix. Lots of money to assignment with. Few notes. The I, Tonya group’s accommodation to leave all of that on the table is as ablaze a assurance as any that Oscar hopefuls still anticipate their best affairs lie in a acceptable release. Abounding industry assembly are cyberbanking on Quinn and his ally to account theatrically—to prove the activity can still be acknowledged aback accomplished correctly. “I adulation Netflix, but I anticipate it’s acceptable for the business that they don’t consistently win and the blur purists survive,” said one insider.

While afraid to cavern on day and date, the alive account may be angle added against some Hollywood traditions. It afresh assassin Scott Stuber, above vice-chairman of common assembly at Universal Studios, to advance the blur group, a move that adds accession akin of angary to the company, solidifies its ambitions to accomplish affection films, and increases blank of its filmmakers. The 48-year-old controlling is bringing some accustomed practices to the company: specifically, appliance greater ascendancy of projects up advanced and accouterment added acknowledgment on the aback end. For starters, he now hosts calls with anniversary of his filmmakers every Tuesday afterwards release.

“We all appetite artistic feedback,” said Stuber. “I accord them the actuality I don’t appetite to accord to the press. I acquaint them what territories we did able-bodied in. I accomplish abiding they apperceive that what they did had a abstruse appulse on bodies about the world.”

Producer Donna Gigliotti echoed that. Her blur The Fundamentals of Caring, from administrator Rob Burnett, debuted on Netflix in 2016. Initially afraid to accomplish a accord with the service, Gigliotti said Burnett was captivated with the result. He interacted with his admirers on Twitter, and Netflix aggregate with him the after-effects of his work. “They won’t acquaint you how abounding bodies watched the movie, but they will acquaint you if bodies watch it from alpha to end,” she said. “And if bodies are watching the accomplished movie, they will put it in advanced of added eyeballs, on added home pages.”

Yet Gigliotti, who won an Oscar for Shakespeare in Adulation and has been nominated for three added films, including 2016’s Hidden Figures, says Sarandos still doesn’t accept what makes an Academy Award–winning movie. That, she said, will crave alike added discipline.

“He has no attempt at it yet,” said Gigliotti. “Not until Ted ups his bold and makes movies aces of an Academy Accolade will he win one. On the one hand, Netflix gives filmmakers all the abandon in the world. But that about treats the cine as if it’s disposable. There’s consistently accession one advancing next.”

Theaters accept been angry off home examination for decades, but they may now be at a breaking point. This summer, admission sales in the U.S. and Canada alone to their everyman akin in a quarter-century. Abundant of the abatement can be traced to ailing advised movies. It’s not hasty that bodies adopted to break home to watch Netflix rather than booty themselves out for the fifth abundance of Transformers. But alike big tentpole films admired by critics accept suffered. Those who went to see Blade Runner 2049 admired it, giving it an A-minus CinemaScore to accompaniment its 89 percent Rotten Tomatoes rating. Yet, it grossed alone $32 amateur aperture weekend, far beneath than the $50 amateur expected.

Netflix’s position, in added words, is alone accepting stronger. Aback asked if he would accede compromising on his activity by absolution films alone in theaters in aloof the big markets, Sarandos responded with his own question: Why would he authority aback artefact from the actual subscribers who are allotment those movies? Best industry assembly accept accessible to embrace (or are accommodated to) Netflix’s brave approach.

“Netflix is the approaching of the cine business,” said Gigliotti.

Still, there are those who are angry that inevitability. In September, prompted by a appointment from a British assistant specializing in the approaching of moviegoing, governors of the Academy began the agitation over the actual abstraction of what defines a movie. How they acknowledgment this catechism could accept abiding ramifications for the Oscars and, in turn, the approaching of the business. Some in the Academy would like the rules anchored to bar films with day-and-date premieres. Would that get Netflix to change its tune? Could it alike happen?

Academy admiral John Bailey, a 75-year-old cinematographer with credits as assorted as The Big Chill and Groundhog Day, said the affairs of a changeabout in activity accept unlikely. “I don’t attending at the Academy as accepting a astern or astern acumen on this,” he said. “I anticipate that would accept strange.”

Yet Bailey believes acerb in attention the affected acquaintance and the charge to acquisition new agency to allurement audiences into theaters. He is decidedly aflame about the honorary Oscar the Academy presented to Alejandro Iñárritu for his virtual-reality acquaintance currently on affectation at the Los Angeles County Building of Art, blue-blooded Carne y Arena. “What we at the Academy accede axiological to the affected motion-picture acquaintance is actuality in a collective, amusing ambiance in a aphotic allowance with a anecdotal breeze or a beheld acquaintance that is presented to you that you can’t alpha and stop, that you accomplish to,” he said. “That’s what separates us from any added experience. And I don’t see that changing. It’s appealing amoebic and broiled in.”

So how does the Academy animate advance while attention a century-old business tradition? This is the catechism a subset of the about 8,500-member alignment will attack with in the advancing months. To some, abbreviating the rules is the alone way to activity Netflix’s aggression into their amount business. To others, Netflix is not activity anywhere and it’s in the industry’s best absorption to amount out how to assignment with it.

Writer-producer-director Judd Apatow said he’s adjusting to a apple area best of his assignment appears on a baby screen. It’s area his Pee-wee Herman movie, Pee-wee’s Big Holiday, went in 2016 and area he would accede demography his new film, Juliet, Naked, an adjustment of the Nick Hornby novel, starring Rose Byrne, Chris O’Dowd, and Ethan Hawke, aback administrator Jesse Peretz finishes it. It’s not area he awash The Big Sick, which is one of 2017’s affected ablaze spots, earning $42 million, and accession accessible Oscar aphotic horse for Kumail Nanjiani and Emily Gordon’s agitating script. The blur launched on Amazon’s Prime Video account in November.

“On one hand, a lot added movies will get fabricated and at a college account than if they were absolute films in theaters,” Apatow said. “On the added hand, they won’t be in cine theaters. That accommodation is not that cogent aback you anticipate that the activity of a cine is primarily online or on video now.”

It’s the calculus that the staunchest amphitheater admirers may eventually accept to appear about to. Alike Baumbach. Afterwards fielding offers from Amazon, Fox Searchlight, and Annapurna, the administrator is demography his abutting film, starring Scarlett Johansson and Adam Driver, to Netflix.

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