Watching a movie with stunning visual special effects, sound effects is best done in cinema halls. The screens are wide, the hall geometry and sound technologies like surrond sound add to the experience. It is no surprise that movies like Jurrasic Park, Inception, Avengers, etc. are best watched on large screen, in cinemas. It is not just the story, it is the movie experience, besides the social aspect of being outside and the lights going down. US box office revenues were 11.32 billion USD in 2019 and 11.89 billion USD in 2018 (all time best).

Lately, streaming has become very popular. It gives the convenience of watching the movie as and when one wanted, without having to drive to a cinema and at much lower price. A family of four can watch several movies in their living room for a monthly service fee of about $15, while a movie ticket would cost each of the family members as much. Added to this would be popcorn and soda. Netflix and lately almost every major studio is into streaming. Traditionally, movies were run in cinemas for about 90 days before getting released in digital format. But that 90 day “windowing” is coming under a lot of pressure with many streaming services deciding to release the movies right away in digital format.

So, we have two interesting and opposing forces - cinema halls and streaming services. One provides the best experience while the other provides convenience and affordability. And then came the COVID pandemic. With cinema halls being the sort of place that by design invited a large gathering in an enclosed room, it provided the perfect recipe for a pandemic spread. Cinema halls are closed and people are stuck at home having not much of an entertainment - a perfect recipe for streaming services to be at their best to relieve those sheltering in place of their boredom.

As if the scenario is not interesting enough, it was rumored that a popular movie streaming service - Amazon Prime Video made a bid for a popular cinema chain AMC. Although nothing of this is confirmed, the very thought process in analyzing this is interesting. What would be Amazon’s interest in AMC?

  • Amazon has a sizeable number of prime customers who get free shipping on goods and some deals on Whole Foods stores. Would Amazon give them monthly passes or subsidized tickets to watch movies in AMC?

  • Amazon Studios makes originals. Would those originals first be released in AMC and later streamed on Amazon Prime?

  • Would Amazon reserve AMC for the first few weeks, for movies with stellar visual and sound effects?

  • Would Amazon split the Studio products into TV shows like soaps for Amazon Prime and movies for AMC?

  • Would AMC become a Hollywood talent scouting arm for Amazon?

In all these, how would the pricing work? Amazon is known for maximizing efficiency and getting the best price for the end customer. Would it be able to replicate it in box office movies? If so, how? It is an interesting aspect waiting to be seen, if the rumours are true and if the deal goes through.

Till then, relax on your couch and stream your favorite shows.