In October, AMC announced its first ever Netflix showing in 200 theatres.
Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.
CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NFLX) movies at AMC.
The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.
The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.
Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.
Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.
The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“
Why The Movie Theatre Industry Is Essential for Films
“With a traditional wide release, premium screen spread, and full marketing campaign, I think ‘Glass Onion’ could have generated at least $50 million to $60 million to lead the entire market,” said Shawn Robbins, chief analyst at BoxOffice.com.
In 2019, “Knives Out” snared $312 million globally on a budget of just $40 million.
The first film’s performance at the box office has provoked questions about why Netflix has limited the release of “Glass Onion” to just one week in a limited number of theaters.
After all, the streamer reportedly shelled out $400 million for the rights to two sequels, OUCH.
Box office analysts predicted the film could have hauled in more than $200 million in ticket sales before the end of its run if it had been given a wider global release.
“This is exactly the kind of movie adults want to see in theaters right now,” said Robbins.
“The family element made ‘Knives Out’ a perfect Thanksgiving release for audiences across the country three years ago. Daniel Craig’s return as Benoit Blanc, Rian Johnson’s sharp storytelling, and another round of positive reviews for ‘Glass Onion’ are building on the excellent goodwill from the prior film as this semi-sequel reaps some rewards, but it arguably could have achieved even more.”
Streaming Didn’t Kill Movie Theatres
Despite what Wall Street and media personalities such as Charles Gasparino argue for, streaming did not kill the movie theatre industry.
In fact, this proves companies such as Netflix need movie theaters to thrive.
What’s stopping the movie theatre industry from fully thriving is the lack of movie titles.
This is why Amazon CEO Jeff Bezos is investing more than $1 billion per year in the movie theater industry.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
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.
Amazon is still sorting out this strategy said people who asked not to be identified.
That number of releases puts Amazon on par with major studios such as Paramount Pictures.
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