According to the Guardian, the £3.9million film was shot in Ghana last year. 42-year-old Elba is currently in London filming the fourth series of award-winning British drama Luther, in which he plays the lead character.
Netflix beat distributors like Focus and Fox Searchlight for the rights to his latest film because the its backers believed it would reach a much bigger audience online.
One of the producers Amy Kaufman told Variety: 'This movie will have the muscle of Netflix behind it.
Share this article Share 4.3k shares 'It will definitely be seen by a lot more and different kinds of people through Netflix than it would have through a traditional platform.'
She believes the quality of programming on the site is altering people's perceptions about the way they consume entertainment content.
She added: 'It could be a game changer. This has the potential to change the way people perceive how movies and art are delivered to them.'
Netflix encountered a similar stalemate last year when it announced a partnership with Weistein Company and Imax on the 'Crouching Tiger, Hidden Dragon' sequel.
According to Variety, independent chains such as the Alamo Drafthouse which has 19 theatres in Texas, New York and California has said it will screen the movie.
Its Chief Executive Tim League said: 'I'm agnostic about this sort of thing. I look at films I want to play and I play them regardless of the release strategy.'
'I don't look at myself as a competitor to Netflix. I think that argument is a little bit of a red herring. I watch a lot of movies at home, but there comes a time where I want to get out of the house.
'I look at cinemas as one of those options that compete with restaurants or baseball games or all of those things I can't do in my living room.'
Movie experts say Beasts could be shown in as many as 250 art-house cinemas.
It is being directed by California-born Cary Fukunaga who was responsible for Jane Eyre starring Billy Elliot star Jamie Bell - and hit TV series True Detective featuring Oscar winner Matthew McConaughey.