In the latest news of a possible competitor to Netflix in the streaming space, a new streaming service is being launched by AMC Theaters.
“AMC Entertainment, the largest multiplex operator in the world, will introduce an iTunes-style online video store in the United States on Tuesday, said Adam Aron, AMC’s president and chief executive,” The New York Times reports. “The service, AMC Theaters On Demand, will offer about 2,000 films for sale or rent after their theatrical runs, just as iTunes, Amazon and other video-on-demand retailers do.”
The move reflects changes in a landscape where the movie theater industry has traditionally had a beef with online video.
“Hollywood’s five biggest movie studios — Disney, Warner Bros., Universal, Sony and Paramount — have made deals with AMC for catalog and new-release movies,” The Times notes. “Although DVDs still account for billions of dollars in sales for studios, more profit now comes from digital downloads and rentals.”
The report quotes Ron Sanders, president of worldwide distribution and home entertainment at Warner, saying: “For us, it’s all upside. Most of our other big digital partners are focused on multiple categories — music, books. The great thing about AMC is that movies are the whole focus.”
The Times notes that films will cost about $3 to $5.99 to rent and $9.99 to $19.99 to buy.