Netflix Inc. NFLX, +1.88% will not be competing at the Cannes Film festival this year, after a rule change that bans films that do not have theatrical distribution in France, Variety reported on Wednesday. Netflix content chief Ted Sarandos told Variety that the streaming giant believes the festival sent a clear message with its new rule. Last year, Netflix brought two films that showed in competition, Bong Joon-Ho's "Okja" and Noah Baumbach's "The Meyerowitz Stories." But French theater owners and unions protested the company's inclusion, because French law only allows films to appear on home platforms 36 months after their theatrical release. Netflix usually puts its films on its platform on the same day that it releases them in theaters, a practice that has long irked Hollywood. Sarandos said the festival has chosen to celebrate distribution rather than the art of cinema. "We are 100% about the art of cinema. And by the way, every other festival in the world is too," he said. Netflix shares have gained 112% in the last 12 months, while the S&P 500 SPX, -0.55% has gained 12%.