Netflix vs Cannes: The 2018 Clash Over the Future of Cinema

In 2018 a high-profile conflict exposed a growing divide in the film world: the streaming-first, on-demand model championed by services like Netflix versus the traditional theatrical, festival-focused view of cinema upheld by institutions such as the Cannes Film Festival. At the heart of the dispute were competing ideas about what constitutes a legitimate cinematic release — and whether films intended primarily for streaming should compete on the same stages as theatrically released works.

The clash intensified after Netflix entered films into the Cannes selection following their 2017 submissions, notably The Meyerowitz Stories and Okja. Cannes director Thierry Frémaux responded by reaffirming festival rules that require films competing at Cannes to be released theatrically in France. That stance collided with French cultural policy: under French law a film that plays in cinemas must generally wait 36 months before appearing on a streaming service. For Netflix, a business built on simultaneous or early streaming availability, this three-year restriction effectively undermined its distribution model.

Faced with this requirement, Netflix withdrew all of its titles from the 2018 festival program. The company’s move was framed as a protest against what Netflix executives characterized as an exclusionary approach to exhibition. Ted Sarandos, Netflix’s Chief Content Officer, criticized mandatory theatrical windows as elitist and argued that streaming platforms are a legitimate home for contemporary filmmaking. Cannes, by contrast, defended the theatrical experience as essential to its mission of honoring cinema as an art form.

Several high-profile films and projects were affected by the standoff. Cannes had expressed interest in presenting works including Orson Welles’ unfinished The Other Side of the Wind and new films by directors such as Alfonso Cuarón and Paul Greengrass. With Netflix pulling out, those titles were not shown at the festival in 2018, even as Cannes reiterated its desire to include significant works regardless of distribution method.

The debate prompted responses from influential filmmakers. Steven Spielberg, then an Academy governor, publicly suggested that films produced primarily for streaming should be treated as television for awards purposes and be eligible for TV awards like the Emmys rather than film awards such as the Oscars. That position echoed a long-running argument about whether the definition of cinema depends on theatrical presentation or on the nature of the content itself.

Beyond statements from executives and directors, the dispute raised practical concerns about the future of film festivals, distribution, and the creative choices open to filmmakers. For Netflix, exclusion from prestigious festivals such as Cannes risks limiting the platform’s prestige among directors seeking award recognition and festival exposure. That, in turn, could influence the willingness of established filmmakers to partner with streaming services and could affect Netflix’s ability to attract subscribers who value critically acclaimed, festival-recognized films.

Conversely, Cannes’ insistence on theatrical exhibition could shrink the festival’s pool of eligible films. Streaming services increasingly finance and acquire ambitious, high-budget projects and buy independent films at major markets. If those films are ineligible for festival competition because of distribution terms, the festival could face questions about whether its awards still represent the broadest, most competitive field of global cinema. In short, both sides risk losing access to important films and creators if the impasse continues.

While the immediate consequences were most visible in the 2018 Cannes season, the larger debate touches on enduring questions about how audiences should experience films and how institutions should define artistic categories. Is a film digital-first still “cinema” if most viewers watch it at home or on a mobile device? Should festivals and awards adopt new eligibility rules to reflect changing viewing habits, or should they preserve the theatrical experience as a core standard?

The Netflix–Cannes dispute highlighted both the cultural importance of theatrical exhibition and the disruptive power of streaming distribution. It forced film professionals, critics, and audiences to consider how to balance access, artistic recognition, and the economic realities of modern filmmaking. As the industry continues to evolve, that conversation remains central: maintaining the vitality of film as an art form will depend on finding workable compromises that respect both the theatrical tradition and the opportunities created by streaming.

Note on Cannes: the Cannes Film Festival is widely regarded as one of the world’s most prestigious film festivals, with its highest prizes often helping to define the cinematic highlights of a given year.