With over 200 million subscribers globally, Amazon Prime Video has become one of the largest on-demand streaming platforms. This presents lucrative opportunities for investors looking to fund and profit from movies on Amazon Prime. There are several ways investors can get involved in the booming streaming content industry.
Firstly, Amazon Studios co-produces and acquires movies for Prime Video. Aspiring producers can pitch movie ideas to Amazon Studios for potential funding and distribution on Prime Video. Landing a production or licensing deal allows creators to tap into Amazon’s enormous subscriber base. Amazon Prime Original movies like The Big Sick and Manchester by the Sea have found both critical and commercial success.
Another option is acquiring equity in a production company that regularly supplies movies to Prime Video. Major studios like Paramount and Lionsgate have output deals to provide a pipeline of films. Owning shares in these public production houses gives investors exposure to the streaming revenue they generate. Analysts estimate that streaming will make up 45% of Paramount’s EBITDA by 2024.
Finally, crowdsourcing platforms like Slated allow investors to fund films for a cut of the profits. Users can invest as little as $100 in projects listed on the site. The upside for hit movies like Don’t Worry, He Won’t Get Far on Foot financed on Slated is amplified by sales to streaming services like Prime Video. The key is diversification across multiple projects to mitigate risk.
Leveraging Amazon Studios to fund original movies for Prime Video provides access to a massive audience
One way for investors to be involved in Prime Video content is partnering with Amazon Studios. Launched in 2010, Amazon Studios is the production arm that develops original movies, TV series and documentaries for Prime Video. The division greenlights projects from both established studios and independent creators.
In the early days, Amazon Studios had an open submission process where anyone could upload their full movie script for consideration. Now aspiring producers usually need to submit a detailed pitch outlining the story, budget, target demographic etc. If the proposal shows promise, Amazon Studios may offer the filmmaker a development deal to further refine it. Out of the many projects in development, only a handful get selected for full production funding each year.
For producers, having their movie backed by Amazon Studios is a huge boost in exposure and distribution. All Prime Video Originals are available to stream for over 200 million Prime members globally. High-profile titles also get theatrical releases. Recent examples like Coming 2 America (starring Eddie Murphy) and Tom Clancy’s Without Remorse (starring Michael B. Jordan) were given wide theatrical openings before their streaming debuts.
The chance for both a lucrative streaming release and box office success makes Amazon Studios an attractive partner. Moreover, creators retain ownership of their intellectual property. The production support allows filmmakers to fully realize their vision. Movies like Late Night, Brittany Runs A Marathon and I’m Your Woman may not have seen the light of day at traditional studios focused on tentpole releases.
Of course, Amazon Studios has very high standards when deciding which projects to produce. The development process takes time as they work closely with writers to refine the premise. But for investors who secure an Amazon Studios deal, the returns can be well worth the effort. Having the financial and marketing might of Amazon Prime behind a release opens up tremendous money-making potential.
Major studios like Paramount supply a steady pipeline of films to Prime Video through licensing agreements
In addition to original productions, Prime Video acquires movies from major Hollywood studios and independent distributors. This content is licensed for a fixed period rather than owned outright. Streaming licenses are a lucrative revenue source for studios.
Paramount Pictures has an important output deal that makes the studio’s theatrical releases available on Prime Video after their initial run in theaters and home video sales. Movies like A Quiet Place, Rocketman, Crawl and Instant Family all premiered on Prime Video within one year of their big screen release.
Lionsgate also has an output arrangement for its theatrical films to come to Prime Video after the theatrical window. Movies like John Wick 3, Knives Out and Bombshell landed on Prime Video within 6-9 months of hitting theaters.
These studio deals provide Prime Video with a consistent supply of popular films to drive subscriber growth and engagement. Meanwhile, the studios earn high-margin income by licensing their back catalog and new releases. As the streaming wars heat up, these mutually beneficial partnerships are more important than ever.
For investors, buying shares in major production houses like Paramount and Lionsgate offers exposure to this streaming revenue stream. These companies are positioning themselves to take advantage of the rise of digital platforms. Paramount estimates that by 2024, revenue from digital licensing and streaming will make up 45% of the studio’s EBITDA. Owning equity provides shareholders a piece of that upside.
There are also boutique distributors like A24, Neon and Blumhouse that cater to the indie film market. Streaming services compete aggressively for the rights to acquire and showcase popular festival titles. Amazon just paid $25 million for the rights to the buzzy Sundance film Late Night ahead of its theatrical release by A24. Investing in successful indie distributors allows backing critical darlings and potential award winners.
Crowdfunding platforms provide opportunities for everyday investors to fund individual film projects
Finally, crowdfunding platforms like Slated give individual investors a way to directly finance movies seeking production funds. It democratizes the traditional film financing model that relies on deep-pocketed institutions, wealthy individuals and studio funding.
Slated is an online marketplace that curates and profiles film projects for potential backers. Investors can browse projects in development and invest anywhere from $100 to the full amount being raised. The site handles the legal paperwork and investment tracking. Films sell equity in their project or offer rev share arrangements where investors get a cut of the upside.
High net worth individuals on Slated will sometimes commit hundreds of thousands to a promising film. But smaller investors can also contribute. The breadth of funding sources helps get challenging movies made. Recent Slated projects that found success include The Endless, Thunder Road, Don’t Worry, He Won’t Get Far on Foot and The Peanut Butter Falcon.
The opportunity to invest in potential breakout indie films is intriguing for cinephiles and casual entertainment fans alike. While risky, the chance to support unique creative visions holds great appeal. And if the project is acquired by a streaming service or breaks out theatrically, the returns can be multiplied.
For example, Thunder Road was picked up by indie distributor FilmRise after a successful festival run. After earning $100k on Slated, the microbudget film brought in over $600k at the box office. Similarly, Amazon paid around $5 million for the Joaquin Phoenix drama Don’t Worry, He Won’t Get Far on Foot after it premiered at Sundance. Early Slated investors profited handsomely when the film landed its streaming deal.
While not risk-free, backing projects on platforms like Slated allows investors at all levels to play an active role in financing films. The chance to potentially profit from a movie’s success after supporting it from day one is a unique proposition offered by crowdfunding.
Amazon Prime Video’s subscriber base and licensing needs create lucrative incentives for investing in content. Funding original productions with Amazon Studios provides access to hundreds of millions of eyeballs. Major studio licensing deals offer a way to profit from the streaming revolution. And crowdfunding sites like Slated give average viewers the chance to financially support upcoming movies they’re passionate about. With multiple paths for investing in films tailored to different risk profiles and budgets, Amazon Prime is set to be an important platform for entertainment industry investors.