Netflix is reportedly scrambling to address problems with Greta Gerwig’s upcoming Narnia: The Magician’s Nephew, after a new industry report described the roughly $280 million fantasy film as a potential disaster. The allegations surfaced shortly after the release of the first trailer, which drew a wave of negative reactions online.

Jeff Sneider reported in his InSneider newsletter that the film’s budget stands at approximately $280 million, with some sources suggesting the actual cost could be even higher. One source claimed that people at Netflix consider the movie “awful” and described it as “a genuine problem.”

A second source who attended a test screening over the summer reportedly compared the film to Disney’s 2018 fantasy adaptation A Wrinkle in Time, which suffered major financial losses at the box office.

The report also claims that the screening prompted Netflix executives to order additional filming. Earlier reports in August indicated that executives requested reshoots after watching an unfinished cut of the movie that ran approximately two hours.

According to Sneider, Gerwig has also received outside assistance in the editing room, with an experienced editor or director, or potentially both, reportedly brought in to help complete the film. The report further alleges friction between Gerwig and Netflix film chief Dan Lin over the project. These claims have not been independently confirmed.

The production concerns come as Netflix faces questions about its film leadership. Sneider’s newsletter reported that Doug Belgrad, a former Sony Pictures executive who joined Netflix, is leaving the company. The report also suggested that Lin and Netflix Chief Content Officer Bela Bajaria face uncertainty amid concerns about declining audience engagement.

Netflix has significant financial and commercial stakes in the adaptation. The film is expected to be the company’s biggest theatrical release to date and marks Gerwig’s first feature film since Barbie, which generated more than $1 billion at the global box office.

The cast includes newcomers David McKenna and Beatrice Campbell, alongside Daniel Craig and Meryl Streep, who are reported to voice characters in the fantasy production.

Narnia: The Magician’s Nephew is scheduled to arrive in theaters on February 12, 2027, before becoming available on Netflix on April 2. Whether the reported production difficulties will affect the film’s reception or commercial performance remains to be seen.