Movie theater stocks pop after report says Amazon plans to spend $1 billion on releases - CNBC
Cinemas stocks got a boost Wednesday after a report said Amazon plans to spend $1 billion a year on theatrical film releases.The tech company plans to make between 12 and 15 movies for movie theaters each year, Bloomberg reported, citing people familiar with the matter.The company spent $13 billion on content for its video and music streaming services last year, up from $11 billion in 2020, as it looks to remain competitive in the crowded media landscape. .
While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, its a positive sign for the movie theater business, which has struggled in the wake of the pandemic.