Part of the problem is that small movies, such as many Netflix has snagged from places like Sundance, would be better distributed both at home and in theaters.
If they collude to face the theaters, it's anti-trust, but if they are the ones to take the first step, their films will get killed.
Baloney. The small films often "get killed" anyway. Put in a modicum of advertising (say, subway billboards) and implement a competent social media campaign, and if the audience exists they will find the film.
Hastings probably wants a Netflix exclusive, which might well get a film killed, but a simultaneous release on all the popular monetized platforms will do fine.
The big if's are if the film is any good and if the marketing and distribution are confident. The trick will be as soon as any of the three is bad, the other two will be assigned blame. So get it right already.
Probably best to start with a low-budget sequel to a film with an existing fanbase because creating demand out of the gate is going to be hard. "Bridget Jones's Baby" would have been a good one, for instance. But the studios stand to profit by cutting out the theatres, so there's a far incentive to take on some risk.