Cinema Stocks Surge Amid Report Amazon Plans $1B Theatrical Push

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

Click here to read the story at hollywoodreporter.com.

Discussion Questions:

1. What is distribution?
2. Why is distribution an important function of marketing?
3. How might this story demonstrate the concept of distribution?
4. Why is distribution important in the movie business?
5. Why do you think Amazon’s decision to invest more in theatrical film releases resulted in an increase in stock prices?
6. Why do you think Amazon is planning to spend $1 billion a year on theatrical film releases?
7. What is competition?
8. Who might represent competition to Amazon Studios?
9. How might this news impact Amazon from a competition perspective?
10. How do you think competitors might respond? Be prepared to discuss your answers in class.