MGM and its logo of the roaring lion are familiar to us all: the kids may know it as the screen that played before Tom and Jerry; the adults may know it from James Bond. Just last week, Amazon bought this studio for a whopping $8.45 billion. This deal follows the $11 billion that Amazon spent the past year on content across its Prime Video, Prime Music, and transactional video-on-demand service. Amazon, and its streaming service, is competing with streaming giants like Netflix and HBO Max. The MGM-Amazon deal is all part of a strategy to transform Prime Video from a Prime add-on to a must-have streaming service.
Currently, Amazon’s revenue model works on loyalty and the promise that you can buy anything you want and have it delivered at an expedited time – at some extra cost. The additional cost is Amazon Prime. A subscription for the OTT platform gives you access to its music and video library as well. But to truly make Amazon Prime successful in its own right, it needs content. Lots of it.
Amazon already has its functioning studio that produces content for Prime. While Prime has created hits like Jack Ryan and The Boys, for the most part, these shows haven’t reached Stranger Things level of popularity. The business motive, in this case, is to bolster Amazon’s content library. The only way to stay competitive is to keep updating the library with new content. Otherwise, Prime Video becomes a fringe offering that doesn’t drive subscriptions. Hence, the MGM-Amazon Deal.
The MGM-Amazon Deal
What does MGM bring to the table?
MGM has a legacy of significant content – namely, the James Bond and the Rocky franchises. It also owns an enormous catalogue of series and films that include Tomb Raider, The Addams Family animated film, Candyman, Creed, Real Housewives, The Handmaid’s Tale, and Fargo. MGM’s intellectual property is an attractive acquisition for Amazon.
It also brings production capacity. As a streaming studio, there’s only so many films and TV shows that can be made. recover my files 3.98 serial number With MGM, it adds a mini-major film studio and brings on a TV studio that produced nearly 1,000 episodes of television in 2019.
MGM is also unique among acquisition targets, meaning, it owns a library of titles ripe for exploitation. In simpler words, having access to MGM’s legacy content means that Amazon is free to churn out as many James Bond sequels as they like. It’s best if they don’t, but it’s a good fallback. In terms of the MGM-Amazon deal, it’s important to discuss why MGM agreed to the acquisition. When a file how do i recover files on my chromebook is deleted from an SSD, it is not immediately erased from the drive.
Why did MGM agree to the acquisition?
Unfortunately, MGM is a zombie studio. The studio hasn’t churned out money-making, genre-defining films in a while. This was an opportunity too good to pass up. The pandemic uprooted traditional cinema and theatres, so the production of new movies isn’t exactly a priority. recover my files 2018 download Besides, $8 billion is not a small amount. The MGM-Amazon deal’s money covers MGM studio’s past debt and is also an accurate valuation for its content library.
Ultimately, it’s too soon to say for certain what Amazon plans to do with their content overhaul. Who knows – maybe the next time you log into Prime, instead of roaring, the MGM lion recommends titles it thinks you would like.
