Home entertainment is based on content creation for either TV or movie theaters. While the content for TV is often produced by broadcasters around the world and contains news, sports and all other kinds of relatively short video content, movies are a different animal. They require higher initial investments that are only to be returned based on acceptance by the consumer. Historically, large companies are the most successful in this market.
However, the home entertainment world is changing. Streaming and on-demand entertainment is on the rise, disrupting the historical business model. In the latest Golden Globe awards, Amazon and Netflix both won awards for their own series (‘Transparent’ and ‘House of Cards’).
Source: Amazon
Now Amazon announces that it is planning to produce original movies for theaters and Amazon Prime instant video. The company is planning to release around 12 movies per year starting later in 2015. The creative development will be led by independent film visionary Ted Hope. These movies will feature unique stories, voices and characters from top and up-and-coming creators.
Amazon points out that it usually takes 39 to 52 weeks until movies migrate from the movie theaters to on demand services like Amazon and Netflix. These Amazon movies, however, will be available on Amazon Instant Video after only 4 to 8 weeks.
Considering the interest of consumers in streaming content, this approach will give Amazon an edge in the competition with other streaming providers. Depending on the success of these new movies this could change the overall landscape for streaming in the future. If Amazon is able to create theater movies with mass appeal, this may make a difference in its ability to attract customers.
From a consumer perspective this may lead to faster releases by the leading movie makers in the future, or more streaming providers joining in the content creation. While this development seems very logical from the perspective of Amazon and Netflix, Sony was never very successful at making the most of the availability of top content via its Sony Playstation network. This does not mean that others will have more success in this field. – Norbert Hildebrand
