Amazon Invests 1.3 Trillion KRW Annually to Produce 15 Theatrical Films

Acquisition of Film Studio MGM Last March
"Number of Films Matches Other Major Studios"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Amazon, the world's largest e-commerce company, plans to invest more than $1 billion (approximately 1.35 trillion KRW) annually to produce movies for theatrical release, Bloomberg reported on the 23rd (local time), citing sources.

According to the report, Amazon plans to release 12 to 15 films each year. Although the exact number has not been disclosed, Amazon intends to start releasing movies from next year and gradually increase the number of theatrical releases. Bloomberg explained, "The number of films Amazon plans to release is on par with other major U.S. film studios such as Paramount Pictures."

Gita Ranganathan, an analyst at Bloomberg Intelligence, said, "Amazon's plan to invest $1 billion to produce 12 to 15 films annually shows confidence in the theatrical model," adding, "The budget level is similar to that of Universal Studios and Warner Bros."

Amazon established Amazon Studios, a subsidiary for film and drama production and distribution, in 2010 and has been producing original films and dramas since then. In March of this year, Amazon acquired the traditional film studio MGM for $8.5 billion. Bloomberg assessed that Amazon is more open to theatrical releases compared to streaming services like Netflix but has not yet invested heavily in original film production.

Following the news of Amazon's film investment, shares of Cinemark Holdings and AMC Entertainment, which operate theaters, surged about 10% on the New York Stock Exchange that day.