Amazon is expanding its latest streaming content to a more traditional setting by planning to invest $1 billion each year toward running its new Prime Video releases in movie theaters.
The news broke in a Wednesday (Nov. 23) Bloomberg report stating that the company is hoping to release between 12 and 15 films annually through this new investment allocation, citing people familiar with the matter.
Amazon did not immediately respond to PYMNTS’ emailed request for comment.
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, in potential revenue.
The company has been making huge moves to strengthen its position as an entertainment streaming platform this year, starting with its acquisition of the movie and TV studio MGM for $6.5 billion in March, bolstering its online streaming catalogue.
“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.
This led to the company announcing its plans to rebrand its other streaming platform, Epix+, to MGM+ starting on Jan. 15. The rebrand offers Amazon a new platform to give users access to both new and classic film titles from MGM and other major Hollywood studios in a newly streamlined app.
And with Amazon moving its focus to the movie theater as well as at-home streaming, it will give the company a way to reach even more consumers with its new releases through a variety of channels.