Amazon is reportedly looking into buying a chain of movie theaters. Here's why that makes sense.

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Amazon is reportedly looking into buying a chain of movie theaters. Here's why that makes sense.

landmark at 57 west

Yelp/June S.

A Landmark Theatres location in Manhattan.

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  • Amazon is reportedly in the running to purchase Landmark Theatres, a small chain of movie theaters that primarily show independent and foreign films, Bloomberg reported Thursday.
  • Owning Landmark would give Amazon another physical space to connect with customers, according to GBH Insights' Daniel Ives.
  • A purchase could be another sign that Amazon is looking outside its traditional growth area - customers' homes - to grow sales and Prime memberships.

Amazon might be looking to make a mark at the movies.

The retailer, known for its vast product selection and fast, free shipping, is reportedly looking to purchase Landmark Theatres, according to a Bloomberg report from Thursday.

Landmark is a small chain as far as movie theaters go, with 56 locations around the country. It focuses on niche interests, like independent and foreign films. It does have a good reputation among moviegoers, and it describes itself as "upscale."

Sound like another brick-and-mortar retailer Amazon recently purchased? The Washington Post called Landmark the "Whole Foods of movie chains."

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Neither Amazon nor Landmark responded to Business Insider's requests for comment.

At first blush, Amazon buying a chain of movie theaters might not make a whole lot of sense. Isn't Amazon mostly focused on the home, with its myriad delivery options and home-automation-enabling Alexa devices?

Sure, but Amazon isn't a company that shies away from growth. As far as the acquisitions Amazon has made in recent years, some are obvious - like Ring, the smart-doorbell maker - and some are more focused on the "longer term," according to Daniel Ives, chief strategy officer and head of technology research at GBH Insights.

With a movie theater, Amazon would move one step further into physical retail, creating "valuable touch points" in the real world for customers to interact with. Think: screenings for Amazon Studios movies and films or events for Prime members.

It's just another way for Amazon to "entrench in [customers'] daily lives," Ives said to Business Insider.

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Much like Amazon is giving Prime members perks at Whole Foods, the same thing could be done for a movie theater, perhaps via perks like free or discounted movies and concessions.

"Brick and mortar gives another opportunity to expand Prime membership," Ives said.

Owning a chain of theaters also makes sense as content becomes a larger focus for Amazon in its competition with Netflix and HBO. Prime Video content is already a major driver of Prime subscriptions, though it obviously lags behind the shipping perks. Having a dedicated place to distribute content in the real world, and making it eligible for prestigious awards like Oscars, could become more important.

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