The battle for streaming supremacy is about to get very ugly. Amazon.com Inc. is firing a shot across the bow of Netflix Inc. by attempting to become a primary destination for streaming video. What is interesting is that one of Amazon’s major arrows against Netflix is providing made for Amazon movies a theatrical release.

While Netflix has dipped its toe in theatrical waters, it has always insisted on releasing the films day and date, that it having the films appear the same day on Netflix as when they show up in theatres. This has, of course stymied their efforts when the theatres pushed back .Netflix has further aggravated exhibitors by announcing production output deals with once box-office stalwarts like Adam Sandler.

Amazon is offering up to a 60 days windows on all it releases and seem to be sincerely interested in maintaining a peace with exhibitors. Amazon has had more success recently in acquiring movies as opposed to its rival Netflix . Many industry insiders are claiming that this might be a result of its willingness to provide movies a traditional theatrical release prior bringing the movie back to the Amazon Prime Video service. Netflix is sticking to its gun regarding day and date releases.

Amazon shared its big ambitions for its theatrical releases at CinemaCon in March. The studio sees as many as 15 theatrical releases coming this year. By allowing movies their normal theatrical run, Amazon is also hoping to be a bigger player in the awards season.

Amazon seems intent on playing nice with the theatres and prove brought in two industry veterans to take the lead at Amazon Studios. Bob Berney, the former CEO of indie film distributor Picturehouse, was brought to head movie marketing and distribution. At Picturehouse, Berney led the indie film marketing and distribution company’s marketing and distribution for such films as “Pan’s Labyrinth,” “The Passion of the Christ” and “My Big Fat Geek Wedding.” In his new role at Amazon, he will be responsible for overseeing distribution and marketing for all Amazon original movies.

They also announced that producer Ted Hope would lead Amazon’s original movies creative development. Hope, an outspoken advocate for changing the way independent films are produced and distributed, co-founded and ran production company Good Machine, which produced “Eat Drink Man Woman” and “Crouching Tiger, Hidden Dragon.”

Further to its theatrical plans, in April, Amazon announced that it will begin offering its video-streaming service as a stand-alone option for the first time. this is key since now a monthly subscription will cost $8.99, a dollar less than the most popular plan from Netflix. Prior to this Amazon has been offering its video service as a perk for subscribers of its $99 annual Prime shipping service.

This more than ballsy move to offer a stand-alone video service suggests Amazon is now confident it has the robust programming needed to go head-to-head with Netflix. What Amazon knows is that Black Friday approaches, a two-day consumer frenzy when consumers get all their Christmas shopping done with Amazon’s two-day shipping guarantees. The tsunami of purchasing and the lure of free two-day shape will draw consumers to Amazon in unprecedented numbers.

The Prime service has become a crucial and frankly totally brilliant component in Amazon’s growing online and retail dominance. As well as providing a reliable revenue stream of membership fees, it now turns out that Amazon Prime members spend almost double what non-Prime customers do in a year.
At present count, Netflix has about 43.4 million paying U.S. customers at the end of last year, which it expected to rise to 45.4 million by the end of March. It has about 75 million total customers globally. While Amazon doesn’t disclose its Prime membership totals, but estimates range from 40 million to 60 million worldwide.

The theatrical strategy coupled with the now monthly Prime Service will make Amazon the predominant outlet for content aggregation. It many ways Amazon has tactfully thwarted the studios attempt to establish a direct connection with the consumer. Amazon has become the world’s greatest mall offering almost everything and anything. And their acknowledgment that movie theatre are a key part of the entertainment of the entertainment ecosystem will further endear them to consumers.

What is happening is a game changer and is beneficial to theatres.

In February, Amazon Studios acquired the North American rights to Woody Allen’s next movie, a comedy set in the 1930s, for a reported $20 million. Supposedly, Amazon Studios acquired six films from the Sundance Film Festival this year, including the much touted Kenneth Lonergan film Manchester By the Sea.

Netflix is seen as not too serious about theatres while Amazon seems to feel that theatres are key to their strategy for streaming domination.

Amazon was quoted at CinemaCon as saying that “theatrical runs position a movie as a real movie in customers’ eyes” They further added that Amazon Studios’ goals are “aligned” with those of movie theaters.

If they are sincere, and that remains to be seen ….. it’s the best news theatrical side of the business has had in awhile