Netflix Inc. is no longer welcome at the Cannes Film Festival, after this year, unless the streaming platform adjusts its view on film distribution.

Netflix has two films at this year’s festival: “Okja,” a fantasy flick from Korean director Bong Joon-ho, and Noah Baumbach’s “The Meyerowitz Stories.” Both films will be presented in official selection and in competition during the festival. Neither film will have a theatrical release in France.

“The Festival de Cannes is aware of the anxiety aroused by the absence of the release in theaters of those films in France,” the festival wrote in a statement. “The Festival de Cannes asked Netflix in vain to accept that these two films could reach the audience of French movie theaters and not only its subscribers. Hence the Festival regrets that no agreement has been reached.”

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While the Cannes Film Festival board did not pull Netflix’s films from contention, as was suggested by France’s exhibitor association the National Federation of French Cinemas, it adapted its rules so that any film looking to compete at Cannes will need to commit to being distributed in French movie theaters. The new rule kicks in next year.

“The Festival is pleased to welcome a new operator which has decided to invest in cinema, but wants to reiterate its support to the traditional mode of exhibition of cinema in France and the in the world.”

Representatives for Netflix declined to comment, but following the news Netflix Chief Executive Reed Hastings said on Facebook: “The establishment closing ranks against us. See ‘Okja’ on Netflix June 28th. Amazing film that theatre chains want to block us from entering into Cannes Film Festival competition.”

“Okja” will have theatrical releases in Korea and the U.S.

As Netflix has become a larger player in film production, acquisition and distribution it’s been a strong proponent of day and date releases in which movies debut on the streaming service the same day they open in theaters.

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However, Netflix has softened its stance a bit. In the company’s first-quarter letter to shareholders management wrote, “Since our member are funding these films, they should be the first to see them. But we are also open to supporting the large theater chains, such as AMC and Regal in the U.S., if they want to offer our films.”

Netflix does have a deal premium cinema chain iPic Entertainment to show its films the same day they stream on the service. And for its higher profile films, and those for which it hopes to garner award recognition, Netflix will roll out a limited theatrical release.

There’s no doubt that platforms like Netflix give filmmakers a new creative freedom in telling stories because of their willingness to take risks and their lack of time or structure constraints. But for a lot of filmmakers, having films play on the big screen is still preferred.

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So far Netflix acting contrary to Hollywood’s traditional business model hasn’t seemed to impact the company — it helps when you have $7 billion to spend. Whether being barred from future Cannes Film Festivals, one of the industry’s premiere events, will impact Netflix has yet to be seen. But if Cannes’ new rule has ripple effects through the festival market Netflix could need to take action.