Netflix wanted the original "wide release" to be shorter than most movie theater chains would adhere too and so the original deal fell through with this being the result.
LOS ANGELES — After months of negotiations, Netflix couldn’t clinch
the big-screen deal it wanted.
The streaming giant, which has roots in Silicon Valley, has tried to
appease its top-shelf directors as it expands further into the movie
business. But when it came to a wide theatrical release for “The
Irishman,” the $159 million gangster epic from the director Martin
Scorsese, Netflix fell short.
Netflix announced its fall releases on Tuesday with “The Irishman” set
to debut in select theaters in New York and Los Angeles on Nov. 1 and
then opening in theaters in cities across the country and
internationally later that month. It will be available on Netflix on
Nov. 27, the announcement said.
The main issue is theatrical exclusivity and when the film would be
available on Netflix. The major chains wanted “The Irishman” to be
seen only in theaters for a longer period than Netflix was willing to
accept.
With three and a half weeks of theatrical exclusivity, the rollout of
the Scorsese film is similar to the modest theatrical run for “Roma,”
Netflix’s 2018 film from the director Alfonso Cuarón, which won three
Oscars.
As the final paragraph states however, the New York Time Article points out a comparison with Roma's release, in which it still won three Oscars, meaning one can argue this is still viable for Netflix and Scorsese & Company.