Amazon to invest $1 billion in movies, will release 12 films in cinemas each year
- Tech heavyweight Amazon will invest $1 billion in releasing movies in cinemas each year.
- The value of cinema stocks has increased exponentially after this news broke out.
- The movie theatre industry has struggled to reach the pre-pandemic levels in terms of business due to a dearth of film content.
- Amazon’s commitment is likely to reinstate confidence among stakeholders in the film industry.
Amazon has sent the cinema world into a frenzy. The tech giant has made a $1 billion commitment to release around 12 films in cinemas each year. The value of cinema stocks went through the roof since the news broke out. Bloomberg has reported that Amazon is looking to make somewhere around 12 to 15 films each year.
The value of IMAX stock grew by 7%, Cinemark by 11%, and AMC by 5%. Amazon has not commented on the matter yet.
Content is king, Amazon is aware
Amazon has increased its investments in original content in the past few years through its Prime Video streaming service along with its film and television studios. The firm increased spending on content for its video and music streaming services from $11 billion in 2020 to $13 billion in 2017 to stay competitive in the crowded media market.
The online retailer bolstered its media goals earlier this year when it paid $8.45 billion to acquire the iconic film studio MGM Studios.
Jeff Bezos, the founder and executive chairman of Amazon, has propagated that the company’s media division may help increase the number of Prime subscriptions and other transactions made on its primary e-commerce website.
A $1 billion investment in film development year may be on the lower end of the scale of what major Hollywood studios spend annually, but it is nonetheless encouraging for the movie theatre industry, which has struggled since the pandemic.
Cinema industry finds it difficult to find its groove due to the pandemic
The production pipeline stalled in 2020 and 2021, which resulted in fewer films being released in theatres in 2022 although audiences have come back to the movies. Blockbuster movies continue to generate sizable, occasionally record-breaking domestic box office figures, but without a consistent stream of fresh material, the industry is still far below pre-pandemic levels.
Compared to 2019, there have been almost a third fewer wide releases (movies that open in over 2,000 theatres), which has led to a reduction in the overall box office of about a third. Since production levels resumed in 2022, 2023 is already anticipated to be a stronger year at the domestic box office, but Amazon’s additional film commitments will provide the industry with yet another confidence boost.
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Feature Image Source: Amazon