Amazon announced it will be investing in theatrical releases each year.
👉 Background: Amazon actually got into the streaming business back in 2006 with its first version of Amazon Prime Video - called Unbox. Today, Amazon Prime Video has more than 175 million users.
👉 What happened: Recently, Amazon acquired Hollywood studio MGM for $8.5 billion to ramp up its investment in original movies. And now, Amazon has announced it will produce between 12-15 movies a year to release in cinemas.
👉 What else: The share price of the US’ largest cinema chains jumped between 9% - 12% because experts reckon these 12-15 Amazon movies could boost cinema sales by 15-20%.
💡Despite declining ticket sales, filmmakers and Hollywood veterans are all pushing for media companies, and movie-making tech companies, to embrace cinemas.
💡 It’s not just for the nostalgia of popcorn and a boysenberry choctop. It’s because the biggest hit in theatres is still a LOT more lucrative than the best movie on a streaming service
💡Case in point: Top Gun: Maverick’s theatre release. The movie has generated nearly $1.5 billion USD worth of box office revenue worldwide. So Amazon is hoping to invest in some high-quality, James-Bond-like theatrical releases - before releasing them later on their own platform Amazon Prime Video.
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