Netflix to Buy Egyptian Theatre in Hollywood

Netflix is trying to acquire Egyptian theatre from American cinematheque. Both Netflix and Cinematheque are planning to use this theatre, sounds like a sort of partnership with a win-win situation for both parties.
Netflix will be supposed to run its screenings on weekdays while Cinematheque can use it on weekends for screening of occasion festivals and lectures.

Although the negotiation is at early stage of talks, but the question arise here is what the reasons behind this acquisition are! Is this the right option for Netflix to go for a brick and mortar movie theater when whole world is transferring online?

Most of Americans are shocked with this tragic news, they don’t want this Egyptian theatre to be sold because it’s a non-profit institution and a part of treasured history of Hollywood. But Cinematheque is pressurized to sell because it is out of funds to renovate this theatre and keep it operational.

In my opinion it will be a disaster for Netflix if it acquires an operational theater business because it’s completely against the business model and core competencies of Netflix. 

Perhaps providing a slot to its subscribers to watch new releases in physical theatre a good step for Netflix but in this digital era people have no time to go to theaters just to watch movies, they look convenient and easily accessible at home media sources.