Following a Bloomberg article indicating that Amazon Studios is preparing for a substantial investment in its theatrical slate, the stock prices of AMC and Cinemark, two of North America’s largest exhibition circuits, increased.
According to Bloomberg’s story, the eCommerce behemoth’s movie division will invest up to $1 billion in upcoming films that are expected to be released in theaters. Unnamed sources were used to support this assertion. Boxoffice Pro has not been able to verify or support these allegations as of this writing.
By market close on Wednesday, November 24, hours after Bloomberg’s article was originally released, shares of AMC Theatres had risen by 4%, while Cinemark’s stock price had risen by 12%.
Months after the company’s $8 billion+ purchase of MGM, Amazon Studios will start putting more of an emphasis on theatrical releases. Exhibition executives have reacted favorably to adjustments taking place at other Hollywood studios, including as Disney and Warner Bros., which appear to mark a move away from day-and-date and streaming-exclusive releases that completely bypass theaters.