(Bloomberg) -- Netflix Inc. is in talks to release Greta Gerwig’s upcoming remake of The Chronicles of Narnia on Imax Corp. screens globally, which would be one of the streaming platform’s biggest business deals with cinemas, according to people familiar with the matter.
Gerwig, who directed last year’s blockbuster Barbie, wants to release Narnia in theaters, a distribution model that Netflix has largely resisted. The company prioritizes viewership on its namesake streaming service. While Netflix and major theater chains have never been able to agree on a business model, Gerwig and the film’s producers see an opportunity with Imax, which has close to 2,000 screens in 90 countries.
Imax has signaled to Gerwig that it will add the film to its slate of upcoming movies if Netflix agrees to such a deal, said the people, who asked not to be identified as the information is private. Discussions are at an early stage and no decision has been finalized, the people said. And screenings would still be conditional on the approval of cinema chains such as AMC Entertainment Holdings Inc. and Cineworld Group’s Regal that house Imax screens.
Representatives for Gerwig, Imax and Netflix declined to comment.
Netflix acquired the film rights to C.S. Lewis’ beloved children’s books in 2018 and hired Gerwig last year to direct an adaptation. The company expects to spend at least $175 million and likely more on the film, which could be the first in a franchise. Gerwig previously turned Louisa May Alcott’s Little Women into a hit that grossed $218.9 million worldwide.
Gerwig will need to recreate the world of the fantasy novels, the kind of visually arresting spectacle that plays well on Imax screens. Yet Netflix has been steadfast in refusing to release pictures in a large number of cinemas. It has released select titles, such as Alfonso Cuaron’s Roma and Martin Scorsese’s The Irishman on hundreds of screens. But major chains won’t show Netflix movies unless the company agrees to withhold them from its streaming services for weeks.
Filmmakers, former Netflix executives and even the CEO of Imax feel that the company is foregoing hundreds of millions of dollars in ticket sales by not putting popular films such as The Gray Man and Glass Onion in theaters. Yet Netflix has resisted pressure from filmmakers and their representatives, arguing that it can deliver a huge audience at home without theaters. Its customers pay to watch their movies that way upon release.
A theatrical deal for Gerwig’s Narnia doesn’t indicate a fundamental shift in Netflix’s strategy, but is another exception to its otherwise straight-to-streaming model, which it has occasionally veered from to satisfy filmmakers seeking to release their pictures in cinemas.
In January, Scott Stuber, Netflix’s former film chief, left after failing to convince his bosses to debut movies in theaters. He was replaced by producer Dan Lin. Lin is seeking to rein in the company’s spending while still committing to major projects like Narnia.
Gerwig’s Barbie, which was released by Warner Bros. Discovery Inc. last year, sold $1.4 billion worth of cinema tickets, making it the highest grossing film in the history of distributor Warner Bros.
Earlier in October, Barbie actress Margot Robbie and other producers of Emerald Fennell’s upcoming Wuthering Heights film turned down an offer from Netflix to acquire the movie. Wuthering Heights instead sold to Warner Bros., which has guaranteed the picture a theatrical release.
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