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.