Just one month after Netflix co-CEO Ted Sarandos declared the movie theater model “outdated” and suggested that most Americans would rather stream at home, audiences across the country have emphatically proven him wrong, turning out in record numbers over the weekend as Disney’s Lilo & Stitch and Paramount’s Mission: Impossible – The Final Reckoning lit up the big screen in what has become the most lucrative Memorial Day weekend in movie history.
Sarandos, speaking at the Time100 Summit in April, dismissed the idea that theatrical releases still hold value in the modern entertainment landscape. “It’s an outdated concept,” he said. “Most of the country cannot walk to a multiplex,” arguing that audiences prefer to watch movies “at home, thank you.” While he expressed admiration for theaters as an experience, Sarandos ultimately urged filmmakers to “focus on the fans” and pivot away from the big screen.
But it seems like the Netflix boss does not have the fans figured out quite the way he thinks he does.
Over the four-day Memorial Day weekend, Lilo & Stitch roared to a $183 million domestic debut and a staggering $341.7 million global total — a mammoth performance for the Disney live-action remake, which needed only about $250 million to break even. Meanwhile, Mission: Impossible – The Final Reckoning delivered the biggest domestic opening in franchise history, pulling in $77 million over the long weekend and $204 million globally.
Combined with the strong holds of Final Destination: Bloodlines, Sinners, and Thunderbolts, the two blockbusters drove the domestic box office to a record-setting $322 million — a figure that not only defies Sarandos’ comments, but also reaffirms the enduring viability of theatrical experiences in a supposedly “streaming-first” world.
“This weekend shows the essential nature of the moviegoing experience,” said Comscore Senior Media Analyst Paul Dergarabedian. “The summer movie season of ’25 is going to be epic — not just in terms of box office revenue, but in how it reminds audiences, studios, and even skeptics why the theatrical model still matters.”
Franchises, Nostalgia, and the Power of Spectacle
Part of what makes this box office boom significant is that it wasn’t driven by just one dominant franchise. Instead, it was fueled by smart event counter-programming — two major studio films that didn’t compete directly, but targeted entirely different demographics.
Lilo & Stitch, a beloved family favorite reimagined in live-action form, proved that audiences still crave shared, big-screen nostalgia. It became Disney’s third-biggest global live-action opening ever, surpassing the debuts of The Little Mermaid, Mufasa: The Lion King, and Aladdin. It also landed No. 1 openings in nearly every major international market, including the UK, France, Brazil, and Mexico.
Mission: Impossible – The Final Reckoning, on the other hand, showcased the enduring draw of Tom Cruise and the franchise’s escalating high-stakes action. While Lilo & Stitch attracted families, kids, teenage girls, and young female millennials, Mission: Impossible dominated among older male audiences and young adult men.
With three weeks booked in IMAX and record-breaking viewership on Paramount+ for older entries in the series, the film is not just a hit — it’s an investment in the long-tail profitability of theatrical IP.
While Netflix continues to champion home viewing, the box office suggests that for some stories — and some stars — the bigger the screen, the better the experience.
Streaming vs. Theaters: A False Binary?
It’s worth noting that Sarandos’ comments weren’t made in a vacuum. He pointed to economic realities: fewer multiplexes, changing viewer habits, and the struggles of an industry in contraction. But this weekend’s numbers suggest that reports of the movie theater’s death are, at the very least, premature — if not wildly off base.
What we saw this Memorial Day was mass-market engagement — the kind of audience turnout that can’t be replicated with streaming metrics alone.
In short, the crowd didn’t just come back — they came back loud.
Hollywood’s Tipping Point
This box office milestone arrives at a pivotal time. The industry is still recovering from the dual Hollywood strikes that disrupted the 2024 release calendar. Studios were eager to test whether pent-up demand would lead to a theatrical resurgence — and it has. With summer 2025 forecasted to top $4.2 billion domestically, surpassing even pre-pandemic numbers, it’s clear that the theatrical model isn’t a relic; it’s a renaissance.
In challenging times, consumers often seek collective experiences. And movies, at their best, still deliver that. Whether it’s families rediscovering Lilo & Stitch or adrenaline junkies strapping in with Ethan Hunt, these box office triumphs aren’t just about money — they’re about momentum.
Netflix’s Sarandos may have declared theaters outdated, but audiences have made their rebuttal. With popcorn in hand and record-breaking receipts to prove it, they’ve cast their vote — and they’re still choosing the magic of the movies.
In other words: the multiplex isn’t dead. It just had its best weekend ever.