Amazon and Apple Are Now Contributing Billions to Movie Industry

Amazon and apple are now contributing billion to movie industry
Market News Daily: Amazon and Apple are now contributing billions to the movie industry.

Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are now contributing billions of dollars to the movie theatre industry.

This is a great development for AMC Entertainment (NYSE:AMC), the largest movie theatre chain in the world.

“Experts are now projecting that ticket sales will be off about 15% from before the pandemic (with 15% less product) and just about every studio is ramping up output.

After years of negotiations and failed experiments, theater chains and movie studios have reached something of a truce.

Studios will debut most of their movies in theaters and can now make them available at home within a few weeks,” says Bloomberg.

Oh, how the tide has changed.

But will the Wall Street short narrative change?

AMC’s short interest for example continues to rise, currently at 24.98%.

AMC Entertainment stock has dropped -43% in the past month despite being up more than +9% this year-to-date.

Let’s discuss the latest developments happening with Amazon, Apple, and AMC.

Amazon Studios Set to Release “AIR” in Theatres

Amazon Studios has its first-ever original movie debuting in theatres globally on April 5th, 2023.

AIR tells the story of the game-changing partnership between Nike and a then-rookie named Michael Jordan.

Insider information surfaced in November last year that Amazon was planning to invest billions of dollars in the movie theatre industry.

This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

CNBC commented:

“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic.”

So far, Amazon Studios has 4 original movie titles coming out with dates still to be determined.

Apple to Invest $1 Billion Per Year in Theatrical Titles

Apple to invest $1 billion in Movie Theatres
Amazona and Apple will bring revenue to AMC in theatrical releases.

The movie theatre industry, including the world’s largest movie theatre chain AMC Entertainment, will receive an additional $1 billion per year in theatrical titles from Apple.

Aside from Amazon, Apple’s investment will bring AMC Entertainment more revenue in theatrical releases.

This will allow the theatre chain to continue tackling its debt and continue working towards becoming a profitable company again.

AMC CEO Adam Aron says that the only challenge the theatre chain currently faces is not having enough movie titles to premier.

The investment by Amazon and Apple is a massive win for AMC.

Apple’s investment is part of the tech company’s efforts to raise its profile in Hollywood and lure subscribers to its streaming service, Apple TV+, Bloomberg reported, citing people familiar with the matter.

The commitment to longer theatrical releases is a way for the company to appease talent, who want their projects on the big screen, and drum up awareness for its streaming platform, which is estimated to have between 20 million and 40 million users.

Bloomberg reports that Amazon and Apple must collaborate with various studios who have the knowledge of releasing films in theatres since they cannot release films in theatres on their own yet.

“That’s why Warner Bros. is releasing Creed III and Air abroad, and why Paramount will still distribute Scorsese’s Killers of the Flower Moon for a fee.”

Positive News for AMC Entertainment and Cinema Industry

Amazon and Apple’s contribution to the movie theatre industry is just what AMC Entertainment needed.

What are your thoughts on the latest developments?

Wall Street can no longer fight for the ‘movie theatres are dead’ narrative.

Do you think this will be a game change for AMC Entertainment?

Leave your thoughts below.

Market News Published Daily

Market News Daily: Amazon and Apple are now contributing billions to the movie industry.
Market News Daily: Amazon and Apple are now contributing billions to the movie industry.

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  1. Frank Nez

    Leave your thoughts below.

    • fam

      Well MR. AA better think about the illegal voting him and his cronies just put forward Its time for more law suits are into this picture no way we should be loosing 90 % of our investment. Overall thats the best news we had in 2 1/2 years and it’s time to burn the H/Fs and Citadel. AMC rarararara

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