Netflix is leasing out New York City's iconic Paris Theater for special events, screenings, and theatrical releases

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Netflix announced a leasing agreement to keep New York City's iconic Paris Theater open, with plans to use the new space for special events, screenings, and theatrical releases of its films, according to a company blog post.

The Paris, one of the oldest cinemas in the United States and the last single-screen theater in New York City, has been a haven for film aficionados and fans of prestige films for over 70 years. The classic theater originally shut its doors in August, only to be reopened by Netflix earlier this month for a limited screening - now the streaming giant is moving toward a longer-term relationship with The Paris.

This comes after an April report that Netflix was in preliminary talks to buy the famous Egyptian Theatre, located directly on Hollywood Boulevard. While it's uncertain whether the Egyptian deal is still moving forward, such a purchase would give Netflix a way to coordinate high-profile movie premieres in two key markets.

The arrangement is likely not an early signal that Netflix is expanding into broader national strategy for theatrical releases, but is instead a one-off strategic investment. Netflix explicitly stated the goal of this purchase was to provide a venue for special events and select screenings rather than part of a plan to alter its film distribution channels.

The deal is also not expected to influence Netflix's existing relationship with the smaller independent theater chains that do show its films including Landmark Theaters - a sign the company is avoiding a unified approach to theatrical releases. Moreover, shifting to broader theatrical releases could require adhering to a theater chain's exclusivity requirements and thereby harm subscriber expectations that a Netflix film will be available online the same day it is released.

That's an expectation Netflix has been reluctant to alter, given that it ended negotiations with AMC and Regal over the theatrical release window for Martin Scorsese's "The Irishman" when the theater chains wouldn't agree to its exclusivity window of 45 days. For context, the typical window is 72 days, though AMC and Regal offered to lower it to 60.

Owning a few high-profile theater locations can offer Netflix the ability to attract directors put off by its straight-to-streaming model and improve the eligibility of their films during award season. A growing number of directors expect any potential partnership with Netflix to leave open the possibility of a theatrical release usually for the purposes of meeting the eligibility requirements for winning an Oscar. For instance, Alfonso Cuarón Oscar-winning film "Roma" received a theatrical release before being added to Netflix.

According to the Academy's Board of Governors, a film must have a minimum seven-day theatrical run in a commercial theater to be eligible. That ruling was recently challenged by prominent film directors like Steven Spielberg who felt films that debut on steaming platforms should only be considered in the TV movie category during the Emmy Awards.

Now Netflix has the option of offering directors a chance at winning an Oscar without the need to negotiate over exclusivity windows with any particular theater chain. Netflix can choose instead to release a film in theaters and on its streaming service almost simultaneously while still satisifying eligibility requirements.

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