The stock price of AMC and Cinemark, two of North America’s largest exhibition circuits, jumped following a report published by Bloomberg claiming that Amazon Studios is gearing up for a major investment in its theatrical slate.
Bloomberg’s report cited unnamed sources behind its claim that the eCommerce giant’s movie business would be investing up to $1 billion in upcoming movies destined to hit theaters. As of this writing, Boxoffice Pro has been unable to substantiate or confirm these claims.
Shares of AMC Theatres went up 4% while Cinemark’s stock price increased by 12% by the close of market on Wednesday, November 24—hours after Bloomberg’s story was first published.
An increased focus on theatrical releases by Amazon Studios would come months after the company’s $8 billion-plus acquisition of MGM. Exhibition executives have reacted positively to changes occurring at other Hollywood studios, including Disney and Warner Bros., which seem to signal a step away from day-and-date and streaming-exclusive releases that forgo theaters altogether.