Report: Amazon Interested in Acquiring AMC Theaters; What That Could Mean for Future of Prime Video
Just how far into the movie business does Amazon want to get? That question comes in the wake of a report from The Intersect that the e-commerce monolith is potentially interested in acquiring the struggling movie theater chain AMC.
The interest is being spurred internally at Amazon by chairman Jeff Bezos, who sees AMC’s myriad issues as an opportunity. The chain has not been able to recover from the COVID-19 pandemic and has now piled up 12 straight quarters of losses exceeding the $100 million mark. AMC has reached deep into its bag of tricks to combat these issues, including the introduction of a dynamic pricing model that will charge customers extra for better seats.
Amazon representatives refused to comment on the report, which they characterized as mere speculation. According to Forbes, market analysts think an acquisition by Amazon is “extremely unlikely” because of AMC’s $5 billion debt load. That issue could be resolved if AMC files for bankruptcy protection, which may allow Amazon to swoop in and buy up its assets at a later date, without being saddled with the debt.
For now, the internal discussions at Amazon about buying AMC are in very preliminary stages. The company may never make an offer, but if it does it would demonstrate how serious Amazon is about having control over every aspect of the movie production and release process.
Owning a studio already is a big step in that direction. Amazon can check that off the list, as it finished its $8.5 billion acquisition of MGM in March 2022. The company reportedly plans to spend upwards of $1 billion per year on theatrical releases, and will bring 12 to 15 movies to theaters annually.
If Amazon brings those plans full circle and purchases a theater chain to serve as a platform for its movies, it would definitely mean fewer direct-to-streaming releases on Prime Video. Things are already trending in that direction, as Amazon will send its new movie “Air,” which chronicles the rise of the Air Jordan athletic shoe brand at Nike, to theaters on April 5.
Prime Video originals like “The Lord of the Rings: The Rings of Power” could certainly find their way onto AMC screens if the company is acquired by Amazon. The company sent the first two episodes of that series to over 200 theaters nationwide in August 2022, demonstrating that a symbiotic relationship between theaters and streamers can exist.
Owning a theater chain could allow Amazon to showcase more of its products on the big screen, as well. Since Prime Video currently holds exclusive national broadcasting rights to “Thursday Night Football,” it would hardly be a surprise to see the company stream games to theater screens. Amazon could even use theaters as operation bases for famous Twitch streamers.
Once again, chances are better currently that Amazon does not submit a bid for AMC theaters, but if it does acquire the chain, the company would be able to exercise unparalleled control over every aspect of the movie production and release process. That would have big implications for the entertainment industry at large, and big potential effects on Prime Video.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.