There are reportedly over 200 million members who receive the shipping product and have access to video. And, with Amazon, it's time for a true multiplex strategy to help get Prime to its next level of success. And while theater operators may want windows that last a minimum of three months or more, with tentpoles, I would rather see collapsed windows that activate depending on when box-office grosses on a weekly basis plateau.īut I get it. I'm not sure I agree with that always certainly exclusives to streaming can enhance the branding aspect of a platform. I'm paraphrasing, of course, but what it boils down to is: always use theaters first, not streaming. Industry site Deadline has been reiterating another rule that I've been paying attention to lately: no matter how small the box office returns, a movie that plays in a theater first will possess an intangible value that quantitatively increases the net present value of future ancillary exploitation. It's a pretty simple rule in Hollywood: movies are a touchstone product, and theaters are touchstone gathering places. I continue to add to my position currently. I will briefly discuss in this article thoughts on how that could happen, and some of the traps Amazon will need to avoid along the way.įor the stock - it is a long-term buy at these levels, but as I have been saying for other big names, no one can predict exactly how volatile the market will get, so an investor has to be willing to average in over time (and especially the next twelve months). While there have been missteps in the evolution of this division -led by, most notably, a lack of a clear vision for the segment - I believe that a direct mandate to deliver completed film projects to theaters will pay dividends down the road. Going forward, Amazon's entertainment assets, led by Amazon Studios, could become close in importance to the company's web-services business. To me, that's a key point, as the Prime strategy as a whole will become very powerful if both services are valued both equally and very highly right now, it seems as if consumers probably are mostly enamored by the shipping discounts as opposed to the filmed-entertainment benefits. It also has a potential opportunity to increase subscriptions to Prime video simply for its own sake and not for the attached shipping product. While that item indicated that theater stocks bounced at the time of a report discussing the strategy, my main concern is with Amazon itself, as I think this will definitely help the company create a more thriving entertainment ecosystem that will drive cross-promotional synergies with the company's e-commerce, advertising and merchandising initiatives. The company wants to make perhaps over a dozen films per calendar year dedicated to the multiplex as first window, according to this SA news item. Amazon ( NASDAQ: AMZN) recently made news (back near the latter part of November 2022) for what appears to be a pivot in its studio strategy.
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