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Amazon is planning to release 30 films per year starting in 2020, according to comments by Amazon Studios chief Jennifer Salke per The Hollywood Reporter.
The film push will include a mix of projects including prestige (niche, arthouse) and commercial (mainstream), both that are acquired from outside studios and produced in-house. Amazon was a particularly active acquirer at Sundance this year, spending $47 million, a record for a single company at the festival.
A key aspect of Amazon’s film strategy could include shortening theatrical windows or bypassing theaters altogether, in a bid to boost Prime subs. Like Netflix, Amazon now appears more willing to experiment with traditional theatrical distribution in a bid to drive attention and traction on its subscription product: Salke said that of the 30 films the studio releases a year, only about 10 would debut in theaters at first, with the other 20 going "direct-to-service."
Amazon previously fell in line with the industry standard, offering theater owners a 90-day window where the film is exclusively in theaters. De-emphasizing theatrical release signals that Amazon is prioritizing Prime as the core product, not box office sales.
Also like Netflix, Amazon is likely to privilege theatrical release for awards contenders, as awards still maintain cultural significance that can drive attention back to the subscription product. Salke described the barometer of success as, "How are you enhancing Prime membership, and how are you bringing new subscribers to Prime?"
Amazon Prime Video needs to stay relevant on its own merits, rather than continuing to borrow credibility on the back of its booming e-commerce platform. Most people have Amazon Prime Video by default of being a Prime member, of which there are now 100 million worldwide. While 74% of Prime Video subs get the service because they have Prime, just 2% of Prime Video subs subscribe to the SVOD service independent of a Prime membership, per Business Insider Intelligence SVOD survey data.
Although Prime’s desirability among consumers is a strength, Amazon also needs to stake a claim on the SVOD space as new players emerge and threaten to siphon consumer mindshare. The more that Amazon can elevate the standalone value of Prime Video, the more Prime Video could drive Prime membership growth — as opposed to the present situation, wherein most Prime members are likely signing up for the free 2-day shipping, viewing the video service as a side perk.
Amazon's film push could be a wise decision as the SVOD market crowds and the number of scripted TV shows continues to grow. With the peak TV phenomenon showing no signs of abating — in 2018, scripted TV series hit another record of 495, up from 487 in 2017 — films may be able to make a more significant cultural impact because there are simply fewer of them in a given year. That's particularly true for award contenders.
Any awards attention — though particularly an Oscar — can help boost the cachet of a streaming platform, which can help attract top talent. Talent relationships are increasingly important as more media giants enter the streaming race later this year and early next year. For its part, Amazon has managed to ink deals with production company Blumhouse for eight films, along with A-listers like Nicole Kidman.
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