Netflix recently made a substantial investment, pouring over $275 million into “The Electric State,” a sci-fi action-adventure film featuring Millie Bobby Brown, Chris Pratt, and a host of sentient robots. If this flick had premiered in theaters rather than landing directly on Netflix on March 14, it would likely have been labeled a major letdown.
The reviews haven’t been kind. Although it topped Netflix’s weekly chart for most-watched movies, garnering 25.2 million views, “The Electric State” fell short compared to other high-budget films like “The Gray Man,” which attracted 41.2 million views. Interestingly, both were directed by the Russo brothers, Joe and Anthony.
However, Netflix isn’t overly concerned about the lukewarm reception. There’s no finger-pointing at marketing, nor are any executives walking out with their belongings. Instead, this scenario highlights how Netflix differs from traditional film studios and how it can casually spend millions on a mediocre project without ruffling Wall Street’s feathers. The company’s stock even saw a slight uptick this week.
The key takeaway here is that no single piece of content can make or break Netflix. For instance, “Squid Game 2,” hailed as the most-watched title in the latest engagement report with 87 million views, only accounted for 0.7% of the platform’s total views. Netflix’s hefty $18 billion annual budget for content aims to cater to a vast and diverse global audience. “The Electric State” represents just 1.5% of this year’s content spending.
Richard Greenfield, a media analyst with Lightshed Partners, finds it amusing how both Hollywood and the media focus on Netflix’s occasional missteps. Meanwhile, the platform boasts massive global hits like “Adolescence,” a gripping four-part series about a teenage boy accused of murder, which captured 24.3 million views on a modest budget. He emphasizes that Netflix adopts a portfolio approach to its content selection.
Neither Netflix nor the Russo brothers commented for this particular article. Rumor has it that quality reigns supreme at Netflix. “With over 700 million viewers, we can’t be one-dimensional. We strive to excel in every genre,” stated Netflix’s chief content officer, Bela Bajaria, during a January event outlining the company’s upcoming 2025 lineup. She maintains that she would greenlight “The Electric State” again despite its mixed reception—15% positive from critics but 73% from the general audience on Rotten Tomatoes.
Netflix picked up “The Electric State” in 2022 after Universal hesitated at its $200 million price tag. The price soared due to special effects and upfront bonuses for the stars and directors. Going forward, such spending on untested content might not be as common. Dan Lin, Netflix’s new film chief, is aiming to trim costs while still splurging on coveted projects. Lin has invested significantly in Greta Gerwig’s upcoming “Narnia” and attempted to secure Emerald Fennell’s “Wuthering Heights” adaptation with a $150 million bid, though Warner Bros. outbid them by offering a wide theatrical release.
Netflix continues to collaborate extensively with the Russo brothers, who have delivered some of the platform’s biggest successes. Their production company, AGBO, plans to start filming “The Whisper Man,” starring Robert De Niro, Adam Scott, and Michelle Monaghan, and is also developing an “Extraction” TV series. The Russos are known for hits like Disney’s “Avengers” films and are set for the next two in that franchise.
“The Electric State” joined Netflix amid Hollywood’s identity crisis. Moviegoers claim they want fresh ideas but consistently reject them. Recently, original works like “Novocaine” and “Black Bag” headlined a notably slow movie weekend in 2025.
Even franchise films, such as “Captain America: Brave New World” and “Paddington in Peru,” are underperforming compared to past installments. Despite hopes for a box office resurgence to pre-pandemic levels in 2025, earnings are lagging, down 5% from 2024 and 38% from 2019.
Peter Newman, a film producer and NYU professor, suggests “The Electric State” exemplifies how Netflix relies more on data analytics than traditional taste, affecting critical and audience responses. He notes that Netflix might be crafting viewers’ preferences, likening it to choosing fast food over a gourmet meal.
