Apple, Amazon 'committed' to big screen: theatre-owners body

Movie theatre owners are confident that previously streaming-focused tech giants Apple and Amazon are now "committed" to putting their films on the big screen - even if Netflix still declines to - their trade body's new president has said.

This week's CinemaCon event in Las Vegas, where owners of multiplex chains and arthouse screens gather annually, took place in an optimistic mood, after three nervous years blighted by the pandemic and the rapid rise of streaming.

Back in those dark days, some 2,000 US theatres were forced to close forever, while even traditional Hollywood studios like Warner and Disney were skipping theatres and putting major films on HBO Max and Disney+ streaming first.

But since big screens reopened, even Apple and Amazon have pivoted to giving movies like "Air," "Napoleon" and "Killers of the Flower Moon" extended runs in theatres.

"I think their commitment to the theatrical experience is amazing," said Michael O'Leary, who takes over the National Association of Theater Owners (NATO) this week.

According to O'Leary, there has been a recognition that movies that are released in theatres first will eventually be more successful on streaming.

The industry's drive to boost subscriber numbers at any cost - a hallmark of the so-called "streaming wars" - has recently dissipated, with investors and markets demanding more focus now on making money.

"There's been a recognition not just in the marketplace, but also on Wall Street, that you have to have elements that allow you to make profit," said O'Leary.

"And theatrical space is one of those places you can do that."

Wind in the sails

This week, Sony showed footage from Ridley Scott's upcoming historical epic "Napoleon," and Paramount gave CinemaCon audiences a sneak look at Martin Scorsese's "Killers of the Flower Moon," starring Leonardo DiCaprio.

Both films were made by Apple, but will be released in theaters by Sony and Paramount respectively.

Amazon recently gave "Air," a sports drama from Ben Affleck, a wide theatrical release, having originally planned to put it straight onto Prime Video streaming.

Still, the industry faces urgent challenges ahead. One noticeable holdout from theaters is Netflix.

Although Netflix last year gave "Glass Onion: A Knives Out Mystery" its biggest-ever theatrical launch, the movie still only played on around 600 screens.

Netflix spends around $17 billion on original content per year - far more than Amazon or Apple and most of its films never reach theatres at all.

"If a company decides that they don't want to do that, that's their decision. I don't agree with it, but we wish them well," said O'Leary.

Meanwhile, some of the world's biggest movie theater chains remain in dire financial straits. Cineworld last year filed for bankruptcy and heavily indebted AMC has had to sell shares to raise cash.

O'Leary blamed global economic conditions and the effects of the pandemic.

"The difficulties that have arisen did not occur overnight and they won't necessarily be solved overnight," he said.