Tag: Netflix

Netflix’s Showing in Theatres Could Have Made $200 Million!

Netflix showing in theatres could have made $200 million
Market News: Netflix misses out on hundreds of millions of dollars for only streaming in movie theatres for a week.

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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AMC Announces First Ever Netflix Showing in 200 Theatres

AMC Netflix
Market News: AMC Netflix News.

AMC Entertainment just announced it will be showing its first ever Netflix movie across 200 movie theatres in the U.S and Europe.

Glass Onion: A Knives Out Mystery starring Daniel Craig will be 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 movies at AMC.

The notion that online streaming and movie theatres were competing it out no longer seem valid as these two companies start a new collaboration.

Will this change institutional investor sentiment?

Let’s discuss it!

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Statement from CEO Adam Aron

AMC Netflix Deal
Official Statement | AMC Netflix Deal.

Adam Aron, AMC Chairman and CEO, commented the following:
“This announcement of our first-ever agreement with Netflix is significant for AMC and for movie lovers around the world.

As we have often said, we believe that both theatrical exhibitors and streamers can continue to co-exist successfully.

Beyond that, though, it has been our desire that we find a way to crack the code and synergistically work together.

By doing so, theatres will make more money by having more titles to show, and thanks to the larger cultural resonance those movies can gain from a theatrical release, they will wind up playing to a wider audience when they also are viewed on streaming platforms.

Accordingly, we also have long said that we would welcome Netflix movies in our theatres with the proper agreements in place.

This agreement that we have reached with Netflix for GLASS ONION: A KNIVES OUT MYSTERY is acceptable to AMC as it sufficiently respects the sanctity of our current theatrical window policy.

We are hopeful that a successful screening in our theatres this Thanksgiving will lead to more co-operation between Netflix and AMC in the months and years ahead.”

Continued

“Rian Johnson’s original KNIVES OUT was a wonderful film that delighted audiences in the United States and around the world, and was a real hit in our theatres.

It’s only fitting that its follow-up, GLASS ONION: A KNIVES OUT MYSTERY, which also stars Daniel Craig and which is already garnering high praise from critics, will be available at more than 200 of our AMC locations around the country this Thanksgiving holiday weekend.

Given the global appeal of the first movie, we are also excited to announce that it will be available at many of our Odeon locations in Europe as well.

We look forward to GLASS ONION: A KNIVES OUT MYSTERY, and we will endeavor to continue working with Netflix on future compelling titles that excite and engage theatrical audiences.”

Critics Stay Silent on the AMC-Netflix Collaboration

AMC Netflix News
AMC Netflix News | AMC Netflix deal | AMC Netflix buyout?

AMC critic Charles Gasparino so far has had no comment in regard to the AMC-Netflix collaboration.

The Fox Business personality has long prophesized the demise of movie theatres would be due to the popularity of online streaming services.

However, the AMC news comes as a big contradiction to what the television announcer has preached to retail investors.

AMC Entertainment recently announced it would be selling up to 425 million shares of APE to pay down their debt.

This will put the movie theatre chain at a significantly better fundamental state as a company.

Is AMC Entertainment proving it’s no longer a screaming short?

What do you think?

Leave your thoughts in the comment section of the blog down below.

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