Hollywood's film schedule is set to be supplemented by additional offerings from Amazon.

Hollywood's film schedule is set to be supplemented by additional offerings from Amazon.

Tech rescues Tinseltown, but not with the typical silver screen spin you might expect.

In 2022, the e-commerce titan and upstart film studio, Amazon, declared plans to spend a hefty billion dollars annually on theatrical releases - funding around 12 to 15 movies a year. And it looks like they're sticking to their word.

Just this month, Amazon, operators of Prime Video and recent owners of MGM studios, took center stage at CinemaCon in Las Vegas, showcasing their lineup of films exclusively designed for the big screen. Their Cinema United debut left jaws dropping with dazzling trailers and first-look clips from upcoming movies like "Project Hail Mary," "After the Hunt," and "Verity."

Stars like Ryan Gosling, Andrew Garfield, Julia Roberts, Chris Pratt, Chris Hemsworth, Hugh Jackman, and Michael B. Jordan are set to dominate these silver screen releases. Brock Bagby, president and chief content officer at B&B Theatres, marveled at the event, calling it "incredible."

Though Amazon won't have a full slate of more than a dozen films until 2026, it has been consistently funding theatrical content in recent years. In 2023, they had one wide release, a film that played in over 2,000 theaters. By 2024, they had increased this to five. This year, Amazon has only four wide releases on the calendar, but they are slated to release 14 in 2026 and 16 in 2027.

This burst of cinematic content is just what the domestic box office needed. While blockbuster franchises have been thriving in the wake of the pandemic, the overall number of wide releases has dwindled over the last decade. Even before Covid and labor strikes stagnated production, Hollywood was making fewer movies each year, reaching an all-time low as per Comscore data.

Midsized movies - often in the drama, comedy, and romantic comedy genres - vanished in the mid-2010s as studios focused their investments on big-budget franchise flicks to secure higher profits. These comparatively lower-budget films have since been redirected to streaming platforms in an attempt to stock these services with economical content.

Analysts predict that the domestic box office has lost roughly a billion dollars each year in ticket sales due to this shift.

Meanwhile, while studios were reshuffling their movie catalogs, cinemas were consolidating. The latest union between The Walt Disney Company and 20th Century Fox, first announced in 2017 and finalized in early 2019, resulted in the loss of between 10 and 15 film releases annually according to Comscore data.

In 2015, 20th Century Fox produced 17 films. After the acquisition, pandemic, and strikes, they have only released a handful of titles each year. The merger coupled with fewer releases has resulted in less potential box office revenue and concession sales, as Paul Dergarabedian, senior media analyst at Comscore, explained.

However, Amazon's dedication to theatrical releases, along with the rise of smaller studios like Neon and A24, could help fill the void left by 20th Century Fox's acquisition, making audiences and exhibitors like Bagby excited for what's to come.

Industry insiders have discovered that the strength of the box office doesn't solely rely on the success of franchise films but also on the sheer volume and diversity of content. A direct correlation exists between the number of theatrical releases and the robustness of the overall box office. During the pandemic, the decline in box office ticket sales largely followed the percentage decline in film releases.

Michael O'Leary, CEO of Cinema United, is optimistic about the future of movie releases, predicting at least 110 wide releases (2,000 or more locations) in 2025, up from 94 last year. The distribution landscape is expected to continue strengthening, with distributors securing release dates as far out as 2028 for promising films [1][2].

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Insights:

• Amazon's increased investment in theatrical content through Amazon MGM Studios is poised to significantly impact Hollywood's movie slate and the overall box office in several key ways:
• Increased Volume of Theatrical Releases: By funding 12 to 15 high-profile films annually, Amazon is causing a noticeable expansion in the theatrical releases available to audiences, potentially leading to increased box office revenue.
• Shift in Content Strategy: Amazon's commitment to funding more theatrical content indicates a departure from their previous strategy of focusing on direct-to-streaming releases. This shift could result in higher-quality or more cinematic feel in the films being produced.
• Competition and Market Dynamics: Amazon's entry as a significant new player in the market is likely to increase competition among studios. This intensified competition could lead to better marketing strategies, higher budgets, and more creative projects as studios vie for market share.
• Meanwhile, studios like Disney and 20th Century Fox have consolidated, resulting in a decrease in the number of releases and potential box office revenue. This consolidation highlights the need for new studios like Amazon to enter the market and produce theatrical content to sustain the health of the overall box office.

1. In 2023, Amazon, a leading force in finance and business, plans to release one wide release film, further augmenting their presence in the entertainment sector.
2. The upcoming films from Amazon Studios, such as "Project Hail Mary," "After the Hunt," and "Verity," promise to cater to a broader audience, offering a mix of genres that have been lacking in the domestic box office.
3. Beyond Amazon, upstart studios like Neon and A24, are also contributing to a resurgence in the movie industry, injecting fresh ideas and a diverse range of films into the market.
4. With an increased volume of theatrical releases expected in 2025, the box office is set for a renaissance, bolstered by studios like Amazon and smaller players in the entertainment industry.
5. The surge in cinematic content from upstart players in the finance sector, like Amazon, could not only fill the void left by consolidation but also breathe new life into the movies-and-tv industry, providing a much-needed boost for exhibitors and audiences alike.

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