Amazon (NASDAQ:AMZN)
Streaming may have scored some victories in the war for entertainment domination. Still, the established paradigm is going down with a fight. In fact, just last week, the conventional approach discovered an unexpected ally as a streamer.
Amazon (NASDAQ:AMZN), which has become one of the industry leaders in streaming thanks to its Prime Video service, has always taken a different approach than its competitors. Before Disney, Comcast, Apple, and Warner Bros. Discovery joined the industry, they were already blazing a trail in the other direction of Netflix.
As a result, they can enhance their own business and the industry as a whole, which is very important now.
First, as usual, some context.
Netflix may have pioneered streaming, but the company remains rigid.
There are two central tenets around which the firm runs: day/date releases with cinemas and everything at once. Strategy helped Netflix get off the ground and establish itself as an industry leader. Still, the company has struggled to evolve beyond its roots in the streaming video market.
It is so staunch that it is stunting its own development.
Amazon has always gone its own way
Instead of trying to disrupt the established theatrical paradigm and establish itself as “the next great thing,” it made friends in the business and received support in return.
Amazon has clarified that it values the theatergoing experience by releasing its films with standard release windows rather than requiring a day-and-date release or offering cinemas a short exclusivity window. Manchester By The Sea is a great example; it was the studio’s first significant awards picture, yet it won many Oscars in major categories, all while Netflix struggled to be noticed.
Unlike widespread assumptions, the business world remembers.
My objective is not to downplay the significance of industry accolades; instead, I want to emphasize the importance of financial success, particularly for high-profile franchise films.
That’s the other factor that Amazon takes into account. Most of Amazon’s recent movie releases have prioritized streaming on Prime Video, but this is primarily the result of Content Optimisation for Video on Demand (COVID). Amazon didn’t see enough of a return on investment to justify going the theater way, but now that things have (apparently) returned to “normal,” whatever that may be, opinions are shifting.
Just Consider Creed III.
The first film to be released by MGM following the studio’s acquisition by Amazon is the third installment of a spin-off boxing series. Yet, with investors and experts watching its every move, Amazon went the unpopular route and stuck with the theater business.
The plan was successful.
Even though it was the first in the series to not debut in the Autumn and the first without Sylvester Stallone, whose Rocky gave birth to this brand, Creed III opened to record-breaking numbers at the box office.
Powered by the charm of Michael B. Jordan and up-and-comer Jonathan Majors, the film outperformed expectations and gave the multiplexes more credibility.
Amazon took a risk, but they felt it necessary since it may result in a highly profitable Creed-verse franchise that spans several media. That’s the benefit of Amazon’s infrastructure and distribution model.
The problem with depending on streaming is that there is no basic analytics, and the landscape is more or less the Wild West. Here, Nielsen ratings are unreliable because of their bias toward certain streaming services and measurement techniques.
Artists, subscribers, and investors must catch up on crucial information.
This has been a thorny issue for artists who desire to build on their previous successes financially. Stay away from a studio negotiation with Netflix’s (provided) stats. As no monetary value is associated with the amount of time spent streaming, it is of little interest to others.
That it made $50 million at the movie office and beat out all competitors (and previous episodes) is significant. All the information investors want to hear about the company’s brand, its stars, and their audience attraction is included.
But now, everyone must receive that kind of information. When all the main guilds return to the negotiation table with the studios to prevent a costly strike, this may be more important than ever. It is anticipated that transparency and revenues from streaming initiatives will be discussed during those meetings.
Many in the business would welcome Amazon’s competitors extending a hand of peace in response to Amazon’s present dedication to the conventional paradigm. Warner Bros. is following suit, with new CEO David Zaslav explaining publicly why the studio would not replicate the contentious hybrid model it introduced in 2021. Zaslav’s new DC co-heads have shown their support for theatrical by creating a “Chapter One” chronology that incorporates titles from both formats.
Using the box office as an economic engine is not new; it simply seems strange after being attacked for so long. It’s getting a second chance now, and that could be enough to save it.
Featured Image: Unsplash @ Daniel Eledut
