How Much is that Picture in the Window?

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You can tell fall is just around the corner, because the war between Netflix and theater chains has heated up once more.

Last year, the streaming giant took on big studios and exhibitors with its Oscar-winning drama, Roma. This year, they’ve upped the ante with Martin Scorsese’s mob drama The Irishman. The $169 million film will make its world premiere Sept. 27 at the New York Film Festival, where it’s the opening night film. Image result for roma

A month later, it will air on Netflix after talks between the company and major theater chains, including AMC and Cineplex, broke down. For weeks, there had been speculation the Oscar-hungry Netflix would further soften its stance regarding theatrical windows, but it couldn’t reach a compromise with the largest theatrical chains. Instead, The Irishman will open Nov. 1 in select independent cinemas willing to carry the film, thus giving Netflix the right to run for a Best Picture Academy Award. It will debut on Netflix Nov. 27.

Netflix used the same tactic to qualify Alfonso Cuarón’s Roma for Oscar contention. While that film won Cuarón a Best Director statue, Roma did not capture Best Picture. It did, however, spark a high-profile reaction from some of Hollywood’s top directors, including Christopher Nolan and Steven Spielberg, who argued Netflix should be limited to Emmy competition. But an Academy Board of Governor’s vote earlier this year rejected the rule change, opening the door for the streaming service to continue its Oscar strategy.Image result for spielberg nolan

Last year, Netflix acknowledged the value of the theatrical experience when announcing that Roma and other Oscar hopefuls would play exclusively in cinemas for two to three weeks before being made available to its subscribers. But that wasn’t enough to appease all Oscar voters — or theater chains, which insist on a 90-day window between the time a title opens and is released on home entertainment.

When Roma lost the best picture race, some cited the lack of box office grosses for the snub. After picking up The Irishman when Paramount passed, top Netflix executives and Scorsese himself immediately began a dialogue with theaters to see what could be done for the film, which stars Robert De Niro, Al Pacino, Joe Pesci and Harvey Keitel.

Some thought Scorsese had the clout to broker a peace: He’s been nominated for a Best Director Oscar eight times, more than any other living director. He’s also a powerhouse at the box office; his hits include The Wolf of Wall Street, which grossed nearly $400 million globally, and the Oscar-winning The Departed ($291 million). But no deal could be reached.

Based on the 2004 book I Heard You Paint Houses by Charles Brandt, The Irishman tells the deathbed story of a mob hit man who claimed to have had a role in the disappearance of Jimmy Hoffa.Image result for the irishman

Earlier this summer, sources say Netflix offered up a 30-day theatrical window before talks crumbled. While Netflix’s minor expansion of its theatrical window this year suggests it’s willing to inch closer to traditional business models for certain films with awards prospects (Roma‘s exclusive theatrical window was 23 days), that window remains far shorter than exhibitors and studios want.

Netflix is hardly alone in questioning the validity of the traditional 90-day theatrical window, considering that most films earn the majority of their gross in the first 45 days. And with the rise of other streaming services such as Disney+, the debate will undoubtedly grow louder.

In the meantime, without the support of a chain like AMC, Netflix will be relegated to playing its titles in indie cinemas such as the Landmark and Laemmle. (Netflix either rents the locations, known as “four walling,” or pays generous terms.)

Scorsese shot the movie on both film and digital and is relying on Industrial Light & Magic to de-age his principal cast for flashback sequences. The Irishman will play first in cinemas in New York and Los Angeles before expanding into additional markets in the U.S. and the U.K. on Nov. 8. It will further expand on Nov. 15 and Nov. 22, according to Netflix.