Canada's largest movie theatre chain is joining with top American cinemas in a boycott of Netflix's first original feature film, a sequel to the martial arts movie Crouching Tiger, Hidden Dragon.

The online streaming service announced plans Monday to release the Weinstein Company's followup to the Oscar-winning hit simultaneously on Netflix and in Imax theatres next summer.

The landmark deal is drawing the ire of major exhibitors, such as Regal Cinemas and Cinemark in the U.S. and Cineplex Entertainment in Canada.

"We believe the in-theatre experience is the best forum to experience a movie," wrote Cineplex Entertainment's director of communications, Mike Langdon, in a statement to CBC News.

"As such, we will not play any movie 'day and date' in our theatres with any other windows."

"Day and date" is the industry term for movies that are released digitally and in theatres on the same day.

Cineplex's comments came after Regal Cinemas, the biggest U.S. theatre chain with 86 Imax locations, said it would refuse to screen Netflix's Crouching Tiger sequel at any of its theatres.

"We will not participate in an experiment where you can see the same product on screens varying from three storeys tall to three inches wide on a smartphone," said Regal spokesman Russ Nunley in a statement to Variety magazine.

"We believe the choice for truly enjoying a magnificent movie is clear."

Big blow to movie monopoly

Netflix and the Weinstein Company were sure to upset movie exhibitors when they announced the plan to circumvent movie theatres' traditional stranglehold on releases.

Netflix chief content officer Ted Sarandos said the alliance is about giving audiences flexibility to watch movies where and when they want to.

"Fans will have unprecedented choice in how they enjoy an amazing and memorable film that combines intense action and incredible beauty,” Sarandos said in joint statement.

Harvey Weinstein, co-chairman of the Weinstein Company, characterized the move as responding to a media industry in flux:

"The moviegoing experience is evolving quickly and profoundly, and Netflix is unquestionably at the forefront of that movement," the statement read.

Netflix and the Weinstein Company are also working on a drama series about Italian explorer Marco Polo.

Digital's expanding domain

Netflix has given traditional television networks a run for their money with their original and Emmy-nominated programs such as Orange is the New Black and House of Cards.

Now, with its first of several feature films coming down the pipe, Netflix is in play for the film industries' coveted Academy Awards.

Acclaimed martial arts expert Yuen Wo-Ping also choreographed the elaborate fight scenes in the first two Kill Bill movies and The Matrix. (Rose Prouser/Reuters) Crouching Tiger director Ang Lee is not signed to direct the long-awaited sequel to his Oscar-winning blockbuster.

The followup, titled Crouching Tiger ​Hidden Dragon: The Green Legend, will this time be directed by famed martial-arts choreographer Yuen Wo-Ping.

Michelle Yeoh is set to reprise her starring role as wise warrior woman Yu Shu Lien.

The Green Legend will hit select Imax theatres and Netflix starting Aug. 28.

Netflix subscribers will be able to stream it at no additional cost.