Netflix has posted lucrative Q3 resultsand while the company’s TV strategy remains strong, the streamer continues to languish in the business of making movies. Dan Lin, the company’s head of movies, has stated that Netflix plans to make better movies… as previous executives have said several times in the past. Matt Belloni and Lucas Shaw dive into the streamer’s earnings call and how the company plans to sharpen its movie strategy.

Can Netflix crack the movie code? Netflix gained five million subscribers this quarter, rounding out to 282.7 million subscribers worldwide. Although it beat its estimates in almost every category, studio films continue to fall short. Dan Lin has been the film director for months and promises a change ahead. Following its predecessor Scott Stuber, this could be just what Netflix needs. “They really gave people … I don’t want to say carte blanche, but there was a greatness that was associated with working at Netflix,” Belloni says. “You could kind of do whatever you wanted to do.”

New sensations? The previous Netflix strategy for movies was about acquiring household names. In doing so, the company developed a track record of overspending on massive efforts with established filmmakers. The high volume of projects under Stuber was not sustainable and there was little reward as several hotly tipped films failed to connect with audiences and critics. So, what does it mean when Netflix declares that they will change course? “It’s not entirely clear what the new strategy is,” says Shaw. “They talk a lot about how they want to make better movies, which is kind of like, ‘no duh.’

Quality > quantity? Although Lin has not given formal interviews about his shift in film strategy, some ripples are beginning to form. The goal will no longer be to push out movies in one rush, but rather to release four heavy hitters each quarter. Netflix remains committed to traditional theatrical releases, but the choice to focus solely on streaming may limit the studio’s reach to certain prestige filmmakers. Again, like Rian Johnson’s Knives Out sequel serial deal has proven, some filmmakers may be swayed by lucrative financial offers. “They see their role as a kind of replacement for the studio programming film that used to be a hit in theaters,” says Belloni. “The mid-budget, star-driven dramas, comedies and (and) rom-coms — those kinds of movies are going to be Netflix’s bread and butter.”