Amazon to spend $1 billion on theatrical movie releases
Amazon will make between 12 and 15 theatrical movies every year, according to Bloomberg. Of late, Amazon has started investing heavily on original content, strengthening its streaming content pipeline, and TV and movie studios. Last year, Amazon coughed up $13 billion on content for its music and video streaming platforms, a jump from $11 billion in the previous year.
While movie stocks received a boost following the news, Amazon declined to comment on the same.
Amid increasing competition, Amazon acquired MGM Studios for $8.45 billion early this year, as part of its founder Jeff Bezos’ grand vision to grow the company’s media business, which will complement the company’s primary business of e-commerce.
While the company’s prime focus is on its streaming service with its original content, Amazon has also dabbled in theatrical releasing of movies. While premiering the first two episodes of its Lord of the Rings series in theatres, it also showed the 2017 comedy “The Big Sick”.
It is a great news for the struggling movie theatre business that has seen tumultuous times especially during and after the pandemic.
Though audiences have started flocking to theatres, the number of movies being released in theatres is comparatively less due to a stalled production pipeline. Amazon’s announcement is a booster for the struggling movie theatre industry.
Welcoming the move, Jeffrey Kaufman, chief content officer and senior vice president of film and marketing, Malco Theatres, said: “To date, no streaming company has committed to a robust theatrical distribution model, including Amazon. We would love if any streamer would support the theatrical space with wide quality releases.”