Cinema exhibitors are getting excited today as Bloomberg reports that online retail giant Amazon plans to spend more than $1 billion a year to produce movies for theatrical release.
This marks the largest commitment to cinemas by an internet company, with the plan being to release 12-15 films annually via this method – a number putting it on par with major film studios. (Deadline disputes this number, saying it’s closer to 8-10 films).
The company is reportedly still sorting through its strategy and will release a smaller number of films in theaters next year before increasing its output.
Amazon spent $13 billion on content for its video and music streaming services last year, up from $11 billion in 2020. The company acquired MGM Studios for $8.45 billion earlier this year.
Though blockbusters continue to drive significant box office numbers, the overall industry remains well below pre-pandemic levels due to a lack of content and fewer wide releases.
