Sign up to receive 5 free days of our daily summary for tech news.

This link has already been used or is invalid. Please log in or subscribe to read the full article.
Media/Telecom

Amazon, Netflix Should Consider Buying Movie Theaters

The new action movie starring Will Smith, “Bright,” was watched by an estimated 11 million people in the three days after it premiered on Dec. 22 on Netflix. In theaters, that audience would translate to a nearly $100 million box office opening weekend. That’s better than all but six movie openings in the U.S. last year. But Netflix won’t see a dime of box office revenue.

Instead, the streaming service is hoping it signs up enough new subscribers to offset the $90 million it spent making the movie. That’s the gamble Netflix makes with its TV shows and films every day, of course. But as the company, like Amazon.com, continues to invest more in programming, the sole reliance on subscriptions takes on extra risk. For Netflix, in particular, diversifying its revenue streams is becoming more important. One solution: Netflix or Amazon could invest in or buy their own movie theater chains.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Entertainment

Hulu Tells TV Studios: Give Disney a Stake in Shows

By Beejoli Shah and Jessica Toonkel

Entertainment

Netflix Plays New Role: Budget-Conscious

By Jessica Toonkel, Tom Dotan, and Beejoli Shah

Apple

Watching Tim Cook at Sun Valley

By Jessica E. Lessin

Entertainment Media/Telecom

At Sun Valley, Plenty of Sellers but Few Buyers

By Jessica Toonkel

Netflix and Amazon could create theatrical demand where it doesn’t currently exist without cannibalizing their streaming services.