Connect with us

Business

Movie theater stocks pop after report says Amazon plans to spend $1 billion on releases

Published

on

106889848-16222034582021-05-28t100051z_1825768426_rc2yon93052z_rtrmadp_0_usa-economy-inflation.jpeg


Cinemas stocks got a boost Wednesday after a report said Amazon plans to spend $1 billion a year on theatrical film releases.

The tech company plans to make between 12 and 15 movies for movie theaters each year, Bloomberg reported, citing people familiar with the matter. A smaller number of films will be produced in 2023 as Amazon builds up its output, the report said.

Advertisement

Cinemark jumped 9% on the news, with IMAX up 6% and AMC up 5%.

Amazon declined to comment.

Amazon has deepened its investments in original content over the years through its Prime Video streaming unit, as well as its movie and television studios. The company spent $13 billion on content for its video and music streaming services last year, up from $11 billion in 2020, as it looks to remain competitive in the crowded media landscape. 

Earlier this year, the e-retailer bolstered its media ambitions when it acquired legendary movie maker MGM Studios for $8.45 billion. 

Amazon founder and executive chairman Jeff Bezos has made no secret of his desire to expand the company’s media business, and he has long believed that it can help drive Prime subscriptions and additional purchases on its core e-commerce site. 

Advertisement

Amazon has released movies in theaters in the past. It premiered the first two episodes of its Lord of the Rings series in cinemas for a limited window, and its 2017 comedy “The Big Sick” was shown in theaters. But the company has primarily launched its original content directly on the Prime Video service.

While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, its a positive sign for the movie theater business, which has struggled in the wake of the pandemic.

Audiences have returned to cinemas, but because the production pipeline was stalled in 2020 and 2021, fewer movies have been released in cinemas in 2022. Blockbuster films continue to drive significant, sometimes record breaking, domestic box office numbers, but without a steady slate of new content, the overall industry remains significantly below prepandemic levels.

There has been about one-third fewer wide releases — films that debut in more than 2,000 theaters — and that has meant that the overall box office is down about one-third as well compared to 2019.

“We certainly applaud content makers when they decide to spend on quality movies,” said Jeffrey Kaufman, chief content officer and senior vice president of film and marketing at Malco Theatres. “But to date, no streaming company has committed to a robust theatrical distribution model, including Amazon. We would love if any streamer would support the theatrical space with wide quality releases.”

Advertisement

Already, 2023 is expected to be a stronger year at the domestic box office, as production levels returned to normal in 2022, but Amazon’s additional film commitments gives the industry another confidence boost.



Source link

Business

Manhattan renters face sticker shock with average rent at $5,200

Published

on

By

107110542-1661769825025-gettyimages-1241895367-HOUSING_RENTALS.jpeg


An “Apartments For Rent” sign outside a building in the East Village neighborhood of New York, U.S.

Gabby Jones | Bloomberg | Getty Images

Advertisement
Manhattan rents rose 2% in November, dashing hopes that prices would cool and forcing many renters to give up their leases or downsize, according to brokers.

The median rent for a Manhattan apartment in November hit $4,033, up from $3,964 in October, according to a report from Douglas Elliman and Miller Samuel. The average rent, which is often skewed by luxury sales, fell slightly for the month but is still up 19% over last year, hitting $5,249 in November.

The increases continue to defy predictions that New York’s sky high rents would fall after the summer and give renters some relief after rents hit all-time records. While rents are easing in many parts of the country, New York’s rents remain stubbornly high and the number of unrented or empty apartments remains low.

“Rents are not coming down as quickly as many would hope,” said Jonathan Miller, CEO of Miller Samuel.

The rise in New York rents also adds pressure to overall inflation, since rents are a large component of inflation indexes and New York is the nation’s largest rental market.

Advertisement

Manhattan rents are so high that many tenants have started to balk at the prices — either moving out of the city or finding smaller, less expensive rentals. The number of new leases signed in November plunged 39% over October, marking the biggest decline since the start of the pandemic in 2020, according to Miller.

Brokers and real-estate experts say landlords over-reached when they started renewing the leases signed in 2020 and 2021, often demanding rent increases of 20% or more. With landlords typically requiring renters to have annual income of 40 times the monthly rent, the rising median rents have stretched many tenants to the breaking point.

“There is some gridlock,” said Bess Freedman, CEO of Brown Harris Stevens. “In 2021, rents took off like a rocket and now tenants are stuck. People aren’t going to sign new leases at these prices, they’re just too expensive. Landlords need to start getting more reasonable.”

Freedman said one of her friends faced a rent increase of 30% with a recent lease renewal. “She felt like she was being gouged,” Freedman said.

Vacancy rates remain low, putting little pressure on landlords to lower rents anytime soon. The vacancy rate in November was 2.4% — still below the historical norm in Manhattan of about 3%, according to Miller Samuel.

Advertisement

There are some early signs that landlords may start capitulating in 2023. The number of landlord concessions — which may include a month of free rent and other deals — rose to 16% in November from 13% in October. Real-estate experts say the big drop in new leases, if it continues, will eventually force landlords to meet renters at a lower price point.

Joshua Young, executive vice president and managing director of sales and leasing at Brown Harris Stevens, said landlords were overly bullish expecting rent increases of 20% or more, and many are now starting to lower prices or adding more concessions to keep their apartments filled.

“A lot of landlords are getting stuck with inventory so and they’re not getting their increases, so they’re reducing price,” he said.



Source link

Advertisement
Continue Reading

Business

Cramer’s lightning round: AGNC Investment is not a buy

Published

on

By

103507374-104044814.jpg


Paramount Global: “Too cheap to believe. … I don’t know where it bottoms, but it sure isn’t close to the top.”

Hasbro Inc: “I don’t like the earnings, and I think that Mattel‘s actually cheaper.”

Advertisement

Citigroup Inc: “The book value is so different from where the common stock is, the price. Something is very wrong there.”

Cramer's lightning round: AGNC Investment is not a buy

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source link

Continue Reading

Business

Jim Cramer says not to fear bearish economic talk from bank CEOs – there’s no ‘financial apocalypse’

Published

on

By

107059906-1652323139311-200222_IMG_7979.jpg


Jim Cramer says not to fear bearish economic talk from bank CEOs
CNBC’s Jim Cramer on Wednesday told investors that they should take gloomy economic commentary from bank executives with a grain of salt. 

“Don’t panic the next time you hear one of these bank CEOs say something terrifying — they don’t know the impact of their words,” he said, adding, “Sure, we’ve got plenty of problems, but they’re not financial apocalypse problems.”

The S&P 500 slipped for a fifth trading session on Wednesday as investors mulled the possibility of a recession.

Advertisement

Adding to investors’ worries, JPMorgan Chase CEO Jamie Dimon said on Tuesday that inflation is eating away at consumers’ pocketbooks and could create a recession. 

The chief executives of Bank of America and Wells Fargo also warned that the economy is slowing down as Americans cut back on spending.

“Memo to America’s bankers: Don’t try to frighten us. Don’t try to get us to sell everything,” Cramer said. “Don’t be Grinches telling us a hurricane could be coming.”

He urged the chief executives to remind investors of what’s going right in the Fed’s fight against inflation, and gave an example of what he believes one of the CEOs should have said: 

“There will come a day when the Fed will be done tightening, although that may be when the S&P 500 is a good bit lower. But I don’t know if I want to take the chance of possibly missing the [next] big rally. Hey, maybe buy small,” he said.

Advertisement

Disclaimer: Cramer’s Charitable Trust owns shares of Wells Fargo.

Watch Jim Cramer's message to U.S. bank leaders

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source link

Continue Reading

Trending