Amazon Studios is about to change filmmaking forever after it announced Monday that it would be launching its own movie business.

The studio intends to produce at least 12 feature-length films a year for theatrical release and VOD streaming, allocating budgets of up to $25 million per production.

With Amazon's growing VOD offer thru Prime Video, the company is now stepping up a gear to produce content that will get films into people's living rooms a lot faster than Hollywood studios do today.

From an industry standpoint it's going to speed up the VOD theatrical window and put a bigger emphasis on good storytelling as the digital giant seeks to make its mark.

Director Woody Allen is confirmed to be producing a new TV series with Amazon Studios where he will write and direct.

Woody Allen : Amazon Studios TV series

A full season has already been ordered and will be available exclusively through Amazon's own distribution network.

For theater owners the news isn't that great as Amazon can produce and distribute its own films without going via traditional distribution. However Amazon Studios plans to go via theatrical release first for its feature slate, and will then offer films to subscribers 1 or 2 months later.