The film industry is finding revitalization through technology, albeit in an unexpected manner.
In 2022, Amazon, the e-commerce titan that has ventured into the realm of film production, announced a commitment to invest approximately $1 billion annually in theatrical films. This investment is expected to cover the production of between 12 and 15 feature films each year. Recent developments suggest the company is on track to fulfill that promise.
The company’s first presentation to the Cinema United — formerly known as the National Association of Theatre Owners — captivated attendees, featuring dynamic trailers and sneak peeks from anticipated films like “Project Hail Mary,” “After the Hunt,” and “Verity.”
The event also boasted appearances from Hollywood stars such as Ryan Gosling, Andrew Garfield, Julia Roberts, Chris Pratt, Chris Hemsworth, Hugh Jackman, and Michael B. Jordan, all set to star in these releases.
Brock Bagby, president and chief content, programming and development officer at B&B Theatres, praised the presentation, stating, “I thought it was incredible. For their first outing, they really pulled out all the stops.”
Although Amazon’s full schedule of over a dozen films won’t materialize until 2026, the studio has been gradually investing in theatrical productions in recent years. For 2023, Amazon has planned a single wide release, expanding to five in 2024. Looking ahead, the company is set to have 14 wide releases in 2026 and 16 in 2027.
This surge in theatrical offerings is essential for the domestic box office. Following the pandemic, while blockbuster franchises have dominated, the total count of wide releases has significantly decreased over the past decade. Evidence from Comscore indicates that even before COVID-19 and subsequent labor strikes stunted production, Hollywood was consistently producing fewer films each year.
Mid-budget films, particularly in the drama, comedy, and romantic comedy genres, began to vanish around the mid-2010s as studios shifted their focus to higher-budget franchise films that promised greater profits. As a result, many of these lower-budget projects have been diverted to streaming services, which seek to enrich their offerings with cost-effective content.
Analysts estimate that this transition has cost the domestic box office approximately $1 billion annually in total ticket sales.
Simultaneously, studios were undergoing mergers, culminating in the significant acquisition of 20th Century Finance Newso by The Walt Disney Company, announced in 2017 and finalized in early 2019. This consolidation led to a reduction of 10 to 15 film releases per year, as per Comscore data.
In 2015, 20th Century Finance Newso produced 17 films. Following the acquisition, along with pandemic-related disruptions and labor strikes, the studio has averaged fewer than six releases each year.
Paul Dergarabedian, senior media analyst at Comscore, noted, “The consolidation of certain studios has led to a significant drop in output over recent years. With fewer releases, the potential for box office and concession sales diminishes. Ultimately, theaters need fresh films to attract audiences.”
Amazon’s dedication to theatrical releases, along with the rise of smaller studios such as Neon and A24, is expected to bridge the gap left by Finance Newso’s acquisition.
Industry experts agree that the vitality of the box office depends not only on franchise success but also on the breadth and diversity of cinematic offerings.
A direct link exists between the number of theatrical releases and the overall box office performance. The decline in revenue during the pandemic closely mirrored the drop in film releases.
“The trend of increasing movie releases is very promising,” stated Michael O’Leary, CEO of Cinema United. “Last year, we saw 94 wide releases across 2,000 or more locations, and we anticipate at least 110 in 2025. Furthermore, distributors are securing release dates as far ahead as 2028 for films with considerable commercial potential.”
