Amazon Aims To Invest $1B Annually At Movies To Be Released In Theaters

Amazon.com AMZN is reportedly planning to expand its latest streaming content to a more traditional setting by investing $1 billion each year toward running its new Prime Video releases in movie theaters.
The company hopes to release 12 - 15 films annually through this new investment allocation, Bloomberg reported citing people familiar with the matter.
This number of releases puts Amazon on par with major studios like Paramount Pictures.
Amazon has been investing in original content in recent years through its Prime Video streaming division.
Earlier this year, Amazon announced it bought MGM Studios for $8.45 billion.
Amazon has had theatrical releases for some of its Prime Video original content.
While the company has released a few of its original movies in theaters in the past, this new effort will put Amazon’s filmmaking arm on a similar level as other major film studios and give it an edge against its main streaming competitor, Netflix Inc NFLX, in potential revenue.
“MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films, and television shows to a global audience,” Amazon’s Senior Vice President Mike Hopkins said at the time.
Price Action: AMZN shares are down 0.24% at $93.90 during the premarket session on the last check Friday.