Amazon.com Inc. intends to invest more than $1 billion per year in film production and distribution in theaters.
The world’s largest online retailer plans to produce 12 to 15 films per year for theatrical release. Amazon will release fewer films in theaters next year and gradually increase its output. With that many releases, it is on equal ground with major studios like Paramount Pictures.
Despite its cost-cutting efforts, Amazon is increasing its investment in original films following the $8.5 billion acquisition of MGM, a 98-year-old Hollywood studio that produced Ben-Hur and Legally Blonde.
Amazon first captured the attention of the film industry by procuring projects at the Sundance Film Festival and distributing them in thousands of theaters for months, following a cycle similar to that of a traditional studio. It was nominated for Academy Awards for The Big Sick and Manchester by the Sea.
CEO Jeff Bezos has pushed his Hollywood studio to create and release more commercial content, which has resulted in the latest The Lord of the Rings TV series, among other projects such as The Terminal List, a show starring Chris Pratt. The majority of the streaming companies, along with Netflix and Apple, have prioritized original television over the film.
When the new Amazon product arrives, theaters will be ready. Ticket sales in the United States are down by over 33% from 2019, the last full year before the pandemic shut down theaters. Many of the biggest film studios are part of companies that have begun to release original films online to boost their streaming services.
Nonetheless, despite falling ticket sales, filmmakers, Hollywood veterans, and talent agents are all urging media companies to embrace theaters. They believe that a big hit in theaters, such as Top Gun: Maverick, is more profitable than even the most popular streaming film.
