Amazon-AMC Rumor Underscores Evolution of the Connected Economy

Whether Amazon buys AMC — or not — may be beside the point.

The mere fact that the eCommerce giant has been rumored to be mulling buying multiplex real estate speaks volumes to the connected economy’s evolution, and the ways lines are blurring between online and offline channels.

Particularly when it comes to media, entertainment and content.

One thing’s for certain: Commerce is, and will be, at the center of it all.

As reported earlier this week, Amazon is reportedly exploring an acquisition of theater chain AMC Entertainment.

There’s already some dismissal of the idea on Wall Street, documented by Yahoo Finance, which cited a Wedbush report. Cineworld might be a better option, wrote Wedbush.

Generally speaking, though, the acquisition of this or any other theater chain, we note, gives Amazon a conduit to push content in new ways, broaden its audience beyond mobile devices and in-home viewing … and by extension, open up new revenue streams.

Getting Them Into the Theater

There’s critical mass to do so. Last year, Amazon announced it would be adding more content and features for its Prime members. Though those offerings had been tied to music and podcasts, it’s not far-fetched to see that a broad range of streaming/concert/movie perks might extend into a theater setting. Consider the scenario where Prime members — there are more than 180 million of them here in the States alone — get early access, or discounted access, to special, members-only screenings. The company, as reported last year, has been aiming to release 12 to 15 movies a year in theaters — that number, we’d hazard to guess, might find some turbo-charging if there’s a wide embrace of such exclusivity.

Popcorn, Palms and Payment

In the brick-and-mortar setting — specifically, with this most leisurely of leisure activities — there’s the chance, too, for Amazon to capture more transactions.

At the concession stand, with Amazon Pay and biometrics in the mix.

As we reported here, pay-by-palm is becoming a more prevalent part of the eCommerce giant’s plans. Panera Bread is leveraging Amazon One pay-by-palm capabilities. Through the mechanics of that deal, consumers can pay for their purchase by scanning their palms. The model could be, conceivably, extensible to buying popcorn, soft drinks or snacks at the theater.

In the PYMNTS report, “The ConnectedEconomy Monthly Report: The Evolving Digital Daily Edition,” we found that there’s been an upswing, overall, in digital engagement across a broad range of activities. Interestingly, last month, compared to February 2022, 21 million more consumers participated in activities involving some type of smart home device. In addition, of 39% of consumers engaged in activities that involved online payments, up from 33% one last year.

It may be the reality — in the future — that we use Alexa to reserve tickets to the newest Amazon Prime exclusive, in-theater showing, at the nearest Amazon multiplex, paying with a wave of our hand when we get there. And a night at the movies becomes a night at the connected economy.