Amazon Plans To Release 12 Movies a Year In Theaters and On Prime

An anonymous reader writes "Amazon has announced that it will begin to produce and acquire original movies for theatrical release and early window distribution on Amazon Prime Instant Video. From the article: "This is a big move from Amazon, as it seeks to narrow the theatrical release window to between four and eight weeks. It can often take up to a year for films to land on subscription video-on-demand (SVoD) services such as Netflix and Amazon Prime Instant Video, however they do typically land on DVD/Blu-ray within around four months. Production for the aptly titled 'Amazon Original Movies' program will kick off in 2015, and plans are afoot to create around a dozen original titles for release in cinemas each year."

Comments

Marketecture Strategery

[xxxJonBoyxxx]

I think Amazon's doing this to blunt attempts by content providers, whether HBO, ESPN, etc. (or even the production companies themselves) to bypass middlemen like cable companies, Netflix, Amazon, etc. by bringing their own paid streaming content to market.

Re:Marketecture Strategery

[DarkOx]

Alternatively you could look at it as vertical integration. The premium cable group is really the only segment trying to 'bypass the middle man' the Studio's etc are doing just about anything they can to protect their old distribution model:

1) Sell it to the theaters (period of exclusivity)
2) Sell it to the second run theaters (shorter period of exclusivity)
3) Home video release
4) Streaming (new and constantly tinkered with)

Netflix and Amazon have both discovered the existing content industry merely tolerates them, if anything as way to scape a little more revenue in from folks who otherwise would have just gone the piratebay.{whatever it is this week}. They are not really interesting in offering licensing terms that given the streaming guys much of a "piece of the action" on any valuable properties. So rather than wait around for Studios to 'cut out the middle man' Netflix and Amazon are getting into the content business, makes sense.

The next logical step is for Amazon (who has more capital than Netflix) to go after the other distribution channels, why leave money on the table. Maybe you can get $20 worth of theater ticket sales once in a while outa somebody that otherwise won't subscribe to prime.

Re:Marketecture Strategery

[schlachter]

Streaming will become a commodity as there are multiple reliable/convenient methods to access content. Content will be the differentiator, and Amazon isn't going to want to rely on a third party relationship to provide that.

Cue the count down until Disney is bought by Apple for similar reasons.

Re:Sell your Amazon stock now!

[willworkforbeer]

Did anyone notice during the Sony Pictures mess a revealed a gross margin of around 50%? And it seems Amazon has a captivate market plus millions of eyeballs a day to freely impress marketing upon, whereas traditional studios have to pay-per-eyeball to get the word out.

Re:Wow! Cool!

[TubeSteak]

Does Amazon have any history of producing good content? Or is this just out of the blue?

http://en.wikipedia.org/wiki/Amazon_Studios

They've been at it since 2013.
One of their original shows just won Best TV and Best Actor at the Golden Globes.

Re:Wow! Cool!

[iluvcapra]

The incumbent film studios don't release many films for home streaming because they think people will have to go to the theater or buy the DVD.

The filmmakers would generally prefer theatrical, since it has the best reach, tends to present the work in the highest quality, and contractual royalties and residuals are most favorable to theatrical release.

The studios (the "producers" and production companies) are indifferent, they like making money off the movie wherever. They prefer theatrical because theatrical usually produces the most revenue but this isn't always true for all films.

The distribution companies would love to launch everything day-in-date, and they love streaming since they usually get a fatter cut of the revenue.

The theaters (the "theatrical exhibitors") are hell bent against day-in-date streaming because they believe they'll lose attendance to it. When a studio attempts to release a movie day-in-date on streaming or DVD, like Universal tried to do with Tower Heist, the theaters band together and refuse to release the movie. Theater chains generally won't agree to screen a film without a contractual blackout period.

Re:Wow! Cool!

[iluvcapra]

Just speaking for 2014... Birdman, Unbroken, American Sniper, Selma, Wild, Grand Budapest Hotel, Whiplash. All sequels and reboots? This was an amazing year for movies and it's really not that exceptional. There's a lot of crap too but 90% of everything is crap.

The big budget movies are usually franchises because franchises are the only way you can get half a billion dollars in box office. A lot of great movies are made every year. Judging Hollywood by Captain America sequels would be like saying Boeing only makes bombers.

I mean, these Amazon movies won't be "big" budget by any standard, either, probably no more than $50 million.