Amazon reportedly an interested buyer of River Oaks Theatre

Members of the Save Our Shrine historical preservation organization gathered to take a promotional photo at the River Oaks Theatre Wednesday, August 30, 2006, in Houston. Save Our Shrine organizer Carolyn Farb, says posing for the photo was also a peaceful protest to plans to tear down the theatre. less Members of the Save Our Shrine historical preservation organization gathered to take a promotional photo at the River Oaks Theatre Wednesday, August 30, 2006, in Houston. Save Our Shrine organizer Carolyn ... more Photo: Nick De La Torre, STAFF / HOUSTON CHRONICLE Photo: Nick De La Torre, STAFF / HOUSTON CHRONICLE Image 1 of / 60 Caption Close Amazon reportedly an interested buyer of River Oaks Theatre 1 / 60 Back to Gallery

Amazon, whose streaming video service has threatened Hollywood studios with blockbuster movies of its own, is apparently now interested in acquiring a means for distribution, putting the fate of Houston’s last historic cinema in the balance.

The e-commerce giant is one of several prospective buyers bidding on Landmark Theatres, one of the nation’s largest arthouse cinema chains showing independent and foreign films, Bloomberg reported Thursday, citing anonymous sources. The Los Angeles-based chain, founded in 1974 and owned by Todd Wagner and Mark Cuban, operates more than 50 movie theaters nationally, including the River Oaks Theatre locally.

Amazon declined to comment. Landmark and its parent company, Wagner/Cuban Cos., did not return requests for comment.

DISRUPTED: Amazon offers home delivery in latest battle for Houston shoppers

Amazon’s potential acquisition of Landmark would be the online retailer’s first foray into the movie theater business, and its latest expansion into brick-and-mortar retail after purchasing Whole Foods Market last year. The online retailer’s $13.7 billion acquisition of Whole Foods shocked the grocery industry, prompting major grocers such as Kroger, Walmart and H-E-B to invest heavily in food delivery services and e-commerce technology.

“Anytime Amazon shows up, you’ve got to pay attention,” said Lance Gilliam, a partner with Houston-based real estate firm Waterman Steele. “This would be the first time they’re going into experiential retail.”

Although Amazon began selling books online in 1994, the e-commerce retailer has expanded into almost everything, including digital media in recent years. In 2007, the Seattle-based company launched Amazon Music, a music streaming platform. Three years later, the company started Amazon Studios, which focuses on creating TV series and films.

Amazon Studios has embraced partnerships with movie distributors to bring its films to the big screen, said Daniel Loria, vice president of content strategy at Boxoffice Media, a trade publication covering the movie business.

REVIEW: Dining in the dark at iPic theater in River Oaks District

Those efforts paid off last year, when Amazon Studios became the first streaming media company to be nominated for the Academy Award for Best Picture. Manchester by the Sea, produced by Amazon Studios, ultimately won Academy awards for best actor and best original screenplay.

If Amazon acquires Landmark, it would allow the studio to more easily bring movies to the big screen, Loria said.

“Amazon believes in cinema wholeheartedly,” Loria said. “They see the value of their movies being seen in as many movie theaters as possible before bringing it to their streaming platform.”

However, Amazon likely would not upend the movie industry, which has already seen disruption from tech companies such as Fandango and MoviePass, Loria said.

Movie theaters over the past decade have adapted to online ticket purchases and mobile ticketing, and have been experimenting with e-commerce innovations. For example, Cineplex, a Canadian movie theater chain, has pioneered the concept of “SuperTickets,” which allows movie-goers to watch films in theaters and later download them when the theatrical release ends.

“The move to e-commerce is happening with or without Amazon,” Loria said. “Amazon would be part of an industry that is already transitioning to this digital world.”

CLICKS TO BRICKS: Amazon, online retailers open physical shops in the Galleria

Amazon’s possible acquisition of Landmark would not seriously challenge major movie chains such as AMC, Regal and Cinemark, which together operate thousands of movie theaters globally. And although the online retailer was able to put pressure on organic food prices when it acquired Whole Foods, it’s unlikely Amazon can budge movie ticket prices with so much competition in the movie business, Loria said.

“A Landmark acquisition would make Amazon another player, but not a dominant one overnight,” Loria said.

Locally, preservationists say they will be keeping a close eye on Amazon potential deal for Landmark. The River Oaks Theatre, opened in 1939, is the longest-running historic movie theater in Houston.

The movie theater, in the River Oaks Shopping Center at 2009 West Gray, was originally part of the Interstate Theatres chain out of Dallas. Designed by Dallas-based architects Pettigrew & Worley, the historic theater features art-deco designs and a classic neon marquee.

There were once dozens of historic movie theaters in Houston showing westerns and black-and-white films, but most have been torn down over the years to pave way for new development. A few remain, including the Alabama Theatre, which was converted into a Trader Joe’s; the Tower Theater, which became El Real Tex-Mex, restaurant and the former Ritz Theatre, now the Majestic Metro events space.

Weingarten Realty, which has owned the River Oaks Shopping Center since the 1970s, announced plans in 2006 to demolish the River Oaks Theatre, prompting outcry from preservations. Ultimately, the real estate firm redeveloped part of the property into a two-story Barnes & Noble bookstore, leaving the theater alone. The firm is now working with Hanover Co. to develop a high-rise apartment tower on part of the River Oaks Shopping Center.

Weingarten Realty said it is aware of the speculation of Amazon’s interest in Landmark, but said it has not been approached by either company at this time. The landlord declined to comment on lease terms, but said it is not aware of any changes to the lease should Amazon acquire Landmark.

Longtime Houstonians said they are cautiously optimistic about a new owner taking over the River Oaks Theatre, rumored to be up for sale for a while.

“I think that Amazon presents an incredible opportunity to reinvent the theater,” Ed Wulfe, chairman and CEO of Houston-based retail brokerage Wulfe & Co. said. “I think it’ll be a boon for the future of the River Oaks Theatre.”

Jim Parsons, the programs director for Preservation Houston, gave a more tempered response.

“We would welcome anything that could bring new life into the historic theater,” Parsons said. “The River Oaks Theatre is significant to Houston. It’s a very special place to see a movie. I hope nothing will change with new ownership.”

paul.takahashi@chron.com

twitter.com/paultakahashi