Amazon moves into production

Online retail giant Amazon is entering the production business, establishing Amazon Studios and striking a first-look deal with Warner Bros.

The new unit is for the time being focused on full-length movies and Amazon has set US$2.7m aside to invest in promising scripts submitted to it by filmmakers and screenwriters by December 31, 2011.

Amazon Studios hopes to nurture a number of theatrical releases based on the best projects and it will give Warner Bros Pictures priority access to the ones it wishes to coproduce. If Warner Bros passes, Amazon will seek alternative partners.

Amazon will pay filmmakers US$200,000 if their movies make it to the cinema and a US$400,000 bonus if they top US$60m at the US box office.