Amazon on Monday took a big step forward into the world of Hollywood, with plans to create 12 feature films a year that will be released first in movie theaters and then, weeks later, streamed to customers.
Amazon Studios is fresh off the success of the series “Transparent” at the Golden Globes, winning best comedy, and its deal with Woody Allen to produce a new streaming series — accomplishments that have drawn comparisons to online giant Netflix. Both streaming services started first with original television series.
But unlike Netflix, which is producing movies that will be released simultaneously online and in theaters, Amazon’s move into feature films will follow the traditions of Hollywood’s delayed release into homes.
Both online firms have become stronger rivals to Hollywood studios and television networks, with their growth in subscribers and ability to fund dozens of new projects.
Amazon Studios, which launched in 2010, said it will begin production of films later in the year with budgets of $5 million to $25 million per project. One or two months after theatrical release, the films will be exclusively provided to Amazon Prime Instant Video customers.
“We look forward to expanding our production efforts into feature films,” said Roy Price, vice president of Amazon Studios.
Amazon viewers will see the films much sooner than the typical cycle of releases to DVDs, cable on-demand and then streaming service providers, Price said.
The “windowing” of a typical film takes 39 to 52 weeks to reach Amazon or Netflix, he said.
