Cinema Stocks Surge Amid Report Amazon Plans $1B Theatrical Push

Cinema Stocks Surge Amid Report Amazon Plans $1B Theatrical Push

Stocks in cinemas rose Wednesday after reports that online retailer Amazon intends to spend $1 billion annually on theatrical film releases.

Bloomberg, citing unnamed sources, reported Amazon plans to release 12 to 15 movies in theaters, with the push into the local multiplex getting underway in 2023. The Hollywood Reporter has been informed by an Amazon source that the theatrical effort is just beginning and that the exact number of titles is yet to be determined.

This move comes after the e-commerce giant bought MGM Studios for $8. 45 billion. MGM is home of big screen franchises, including the James Bond series, which is part of the studio’s 4,000 film title library. Amazon has always wanted MGM to continue making movies.

The news that Amazon was launching a theatrical movie service has boosted cinema stocks. Shares in Cinemark rose $1. 47, or 12 percent to $13. 74 in late afternoon trading on Wednesday. The world’s largest chain, AMC Theatres, saw its stock price rise by 40 cents, or just over 5 percent, to $7.72. And shares in Imax rose $1. 04, or 7 percent to $15. 48, while stock in Cineplex rose 45 cents, or 4.5 percent, to $10.38.

Cineplex CEO Ellis Jacob told THR on Nov. 10 that the theater chain was in talks with online players, including Amazon and Apple, about putting their movies on his screens.

Plans for a renewed Amazon theatrical movie initiative recall Amazon Studios’ nearly a decade-old push to get into the movie industry under a leadership regime that included Ted Hope and Roy Price, vp.

However, major cinema chains are now embracing theatrical windows and are in negotiations with streamers after a backlash from exhibitors to Netflix and other online giants.

Apple TV , Amazon Prime Video and others have used movie theaters as a way to promote their movie streaming releases. Now, exhibitors are hoping that Netflix will follow their lead.

Read More