{"id":139027,"date":"2022-11-25T15:47:20","date_gmt":"2022-11-25T15:47:20","guid":{"rendered":"https:\/\/harchi90.com\/amazon-to-invest-1b-in-box-office-releases-as-more-streamers-embrace-theatrical\/"},"modified":"2022-11-25T15:47:20","modified_gmt":"2022-11-25T15:47:20","slug":"amazon-to-invest-1b-in-box-office-releases-as-more-streamers-embrace-theatrical","status":"publish","type":"post","link":"https:\/\/harchi90.com\/amazon-to-invest-1b-in-box-office-releases-as-more-streamers-embrace-theatrical\/","title":{"rendered":"Amazon to invest $1B in box office releases as more streamers embrace theatrical"},"content":{"rendered":"
\n

Amazon (AMZN) is betting big on the theatrical experience.<\/p>\n

The tech giant plans to invest $1 billion to produce 12 to 15 movies a year exclusively for theaters, according to a new report from Bloomberg. That spending would be roughly on par with major film studios like Paramount Pictures (PARA), Bloomberg noted.<\/p>\n

The report sent shares of theatrical giants like AMC (AMC) and Cinemark (CNK) higher on Wednesday, gaining 4.4% and 12.5%, respectively. Amazon did not immediately respond to Yahoo Finance’s request for comment.<\/p>\n

Earlier this year, Amazon closed its $8.5 billion deal to acquire MGM.<\/p>\n

“Much will come down to what kind of content Amazon produces, how long their windows will be, and how heavily it may lean on IP versus original material, but this is still resoundingly good news for theater owners and Hollywood,” Shawn Robbins, chief analyst at Box Office Pro, told Yahoo Finance, explaining that more streamers committing to the theatrical window will help fill in calendar gaps for theaters.<\/p>\n

“Now that streaming has begun to mature, the pendulum is certainly swinging back toward a balance as these distributors see the kind of success they’ve been leaving on the table with an all-in approach to streaming,” Robbins said. “Theatrical remains a very lucrative business model, and [Amazon’s] news underscores that yet again.”<\/p>\n

If confirmed, Amazon’s investment would represent the largest commitment to cinemas from an internet company and could “easily boost theatrical receipts by 15% to 20% given Universal and Warner have roughly similar budgets,” Bloomberg Intelligence analyst Geetha Rangathan wrote in a new note.<\/p>\n

‘The debate is over’<\/strong><\/h2>\n

Streaming companies have slowly begun to embrace the theatrical window, with high-powered Hollywood executives arguing that the box office has become an essential stop for films looking to turn a profit.<\/p>\n

“The debate is over,” IMAX (IMAX) CEO Richard Gelfond previously told Yahoo Finance Live. “The argument that you can skip a theatrical window and make up for it on streaming just isn’t true. The theatrical window is more essential than ever to get the streaming revenue.”<\/p>\n