Amazon's merger with MGM signals a major threat to the movie-theater industry, according to a prominent exec

• Amazon announced on Thursday that it closed its acquisition of the MGM film and TV studio.
• It highlights what a theater exec called one of his biggest concerns for exhibitors: fewer releases.

Amazon announced on Thursday that it closed its $8.5 billion purchase of the MGM film and TV studio, best known for releasing the James Bond movies.

The deal heightens what a theater-industry exec called one of his biggest concerns for exhibitors heading into 2022: a "shrinking slate of theatrical releases."

"MGM makes movies for theatrical release and Amazon's all about Prime Video," John Fithian, the head of the National Association of Theatre Owners (NATO), told Insider during a December interview.

Movie theaters in the US are already dealing with fewer releases, as studios continue to delay some movies due to the pandemic and media companies prioritize their streaming businesses. Fithian said at the time of the interview that there were around 90 movies on the theatrical schedule for this year from the major Hollywood studios, compared to the 120 typically released in a year before the pandemic.

More movies could be added to the schedule throughout the year. But, since Insider's interview with Fithian, other titles have been removed, including Pixar's "Turning Red," which bypassed theaters for a Disney+ release last week.

In another example of how much the pandemic accelerated the shift to streaming, traditional movie studios from Warner Bros. to the Disney-owned 20th Century (formerly Fox), are making movies exclusively for streaming services alongside theatrical releases. Warner Bros. is making a "Batgirl" movie for HBO Max, while 20th Century is making a "Predator" prequel called "Prey" for Hulu.

Amazon's purchase of MGM could exacerbate the issue, and Fithian called the acquisition a "potential harbinger of the impact of big tech."

MGM's recent movies include the star-studded "House of Gucci," which earned $54 million at the box office in the US, and "Dog," which has exceeded expectations with $50 million since debuting last month.

The fear among exhibitors is that Amazon would debut these kinds of movies simultaneously, or even exclusively, on Prime Video. The company has been aggressive recently in buying movies with commercial appeal, like "The Tomorrow War" and "Without Remorse," both of which it released exclusively to Prime Video.

One thing cinemas can rest assured about is that future James Bond movies are expected to still be released exclusively in theaters.

Producers Barbara Broccoli and Michael G. Wilson hold creative control of the series, and if Amazon wanted to release a Bond movie simultaneously on Prime Video or make a Bond TV series, it would have to go through Broccoli and Wilson. They've already stressed that Bond movies will remain a big-screen experience.

After Amazon first announced the deal last year, Broccoli said in a statement, "We are committed to continuing to make James Bond films for the worldwide theatrical audience."

"No Time to Die," the latest Bond film and star Daniel Craig's final outing as the character, was one of last year's biggest releases, grossing $774 million at the global box office.

The Amazon-MGM deal isn't the only major merger happening in Hollywood this year. WarnerMedia's merger with Discovery is expected to close in early Q2, and the new company will be called Warner Bros. Discovery.

But Fithian was less concerned with that deal, even if Warner Bros. is also making movies for Max. Insider's Claire Atkinson recently reported that restoring theatrical exclusivity is a top priority for Discovery CEO David Zaslav, who will lead the new company (Warner Bros. released all of its theatrical movies simultaneously on HBO Max last year).

"Warner Bros. is changing owners, and the Warner Bros. team really believes in theatrical releases," Fithian said. "For 100 years they've been believers in cinema. Along comes AT&T, and they change the whole model. But they're not going to be in charge."