Amazon plans to invest $1 billion a year in theatrical films

Amazon plans to invest more than $1 billion annually in making movies for theatrical release, making a strong entry into this market.

This information was revealed by Bloomberg🇧🇷 Amazon’s spending would represent the largest commitment to theaters by an Internet company ever. The world’s largest online retailer aims to make between 12 and 15 films a year for theatrical release. This information was allegedly disclosed to Bloomberg by sources who asked not to be named as the company is still aligning its strategy.

The idea is that Amazon will release fewer films in theaters next year and ramp up its production over time. This number of releases puts the company on par with major studios like Paramount Pictures.

“Amazon.com’s plans to invest $1 billion to produce 12 to 15 films a year for theatrical release is a vote of confidence in the cinematic model,” wrote Bloomberg Intelligence analyst Geetha Ranganathan. It could “easily increase revenues by 15% to 20%, given that Universal and Warner have roughly similar budgets.”

Traditionally, streaming services have avoided theaters with most of their original films or released titles for less time and on fewer screens than traditional movie studios. Netflix, in particular, has angered movie theater chains by releasing more than one movie a week to moviegoers at home.

The streaming giant has released a sequel to ‘Knives Out’ in theaters that will only run for a week before going live next month. The original film grossed $312.9 million in theaters in 2019.

While Netflix avoids theaters, Amazon was already more open to them, but hadn’t invested so much in original films until now. While Netflix releases about 100 films a year, Amazon invests in only a few dozen, many of them in languages ​​other than English.

Though Amazon is in cost-cutting mode, the company has ramped up its investment in original films following its $8.5 billion acquisition of MGM, a traditional Hollywood studio with franchises including ‘Rocky’ and ‘James Bond’ “.

Recently, Amazon founder Jeff Bezos has pushed his Hollywood studio to develop more commercial products, which has led to the “Rings of Power” series and projects such as “The Terminal List,” a feature film starring Chris Pratt.

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Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.