The presence of Bong Joon-ho's Okja and The Meyerowitz Stories by Noah Baumbach at the French film festival last year sparked strong protests from French film industry.
Netflix was unable to secure last-minute permissions for a one-week theatrical release in France due to state media regulations.
"Last year, when we chose the two films, I thought I could convince Netflix to release it in the cinema, I was too confident, and they refused," said Cannes head Thierry Fremaux.
Fremaux mentioned that the Netflix side liked the red carpet and wanted to present another film at the festival. However, Netflix understands that their persistence in defending film distribution methods is contrary to the principles adopted by the Cannes festival.
Starting the Cannes festival in 2018 which will be held in May, the film shown in the competition must meet the regulation of broadcasting in French cinemas.
Fremaux added, Netflix is reportedly still allowed to showcase his films at this festival, but can not be broadcast at the prestigious Palme d'Or event.
Previously, Netflix has confirmed it will continue the story of the trip Eleven and friends through Stranger Things 3. Although there has been no official release of Stranger Things 3, the series is believed to be released in late 2018 or early 2019.
