Summary

• The new Oscars ruling requires films in the Best Picture category to have a 7-day run in 10 of the top 50 U.S. markets.
• Netflix's strategy of limiting U.S. releases for Oscar-eligible films will need to change due to the new Academy rules.
• The new rule aims to level the playing field for non-streaming distributors while pushing streamers like Netflix to invest in wider theatrical releases.

A new rule for the Academy Awards will hurt Netflix’s current strategy. The Academy Awards, otherwise known as the new category for Best Casting for the 2026 ceremony.

Now, the Academy of Motion Picture Arts and Sciences has released a new rule about the theatrical run a film must have to be considered. These rules, called the “expanded theatrical eligibility requirements,” affect the Best Picture category. According to these conditions, films will now have to have an expanded run of one week in 10 out of the top 50 U.S. markets. For movies with expanded releases that come after January 10, 2025, distributors must submit a release plan subject to Academy approval. Check out the new rules below:

In the Best Picture category, the expanded theatrical eligibility requirements, approved by the Board of Governors in June 2023, will take effect for the 97th Oscars®. Upon completion of an initial qualifying run, currently defined as a one-week theatrical release in one of the six U.S. qualifying cities, a film must meet the following additional theatrical standards for Best Picture eligibility:

1. Expanded theatrical run of seven days, consecutive or non-consecutive, in 10 of the top 50 U.S. markets, no later than 45 days after the initial release in 2024.
2. For late-in-the-year films with expansions after January 10, 2025, distributors must submit release plans to the Academy for verification.
3. Release plans for late-in-the-year films must include a planned expanded theatrical run, as described above, to be completed no later than January 24, 2025.
4. Non-U.S. territory releases can count towards two of the 10 markets.
5. Qualifying non-U.S. markets include the top 15 international theatrical markets plus the home territory for the film.

How These Rule Changes Will Affect Netflix

Netflix Has Focused On Smaller Theatrical Releases For Its Award Contenders

This new Oscars ruling represents a major shift from the previous rule, which only required movies to release for one week in one of six qualifying cities: Los Angeles County, the City of New York, Dallas-Fort Worth, Chicago, Atlanta, and the Bay Area. This policy allowed films to have extremely limited releases, shown only to a select group and never released widely. The old ruling benefitted streamers, who would not have to assume the associated costs that go along with wider theatrical distribution, instead releasing films primarily on streaming.

Netflix has taken advantage of this policy with their releases for years. Recent examples include All Quiet on the Western Front, which did not receive a wide release in the United States until after its nominations. 2021's The Power of the Dog also received a limited release, likely not qualifying under the new rule that a film must release in 10 of the top 50 U.S. Markets.

The new Academy ruling will force Netflix to pivot strategies as it goes into effect for next year’s Oscars ceremony. For non-streaming distributors, this ruling will be a win in the effort to level the playing field and revive interest in the cinema. For Netflix, it may mean at least temporarily having fewer Best Picture nominees, as the streamer cannot take up as much space with largely streaming-only releases. Hopefully, this change will be for the better and force streamers to pay up for larger theatrical releases.

Source: AMPAS