Amazon Prime has grown in popularity since the pandemic closed movie theaters and forced people to stay indoors. Now it looks like Amazon has more plans in store as it heads to Hollywood, with the acquisition of one of the world’s oldest movie studios, the legendary Metro Goldwyn Mayer Studios, for 8.45. billions of dollars. This is the e-commerce giant’s second-largest acquisition since buying Whole Foods for $ 13.7 billion. The deal comes amid a new round of media consolidation as companies seek greater scale to compete in streaming with bigger companies like Netflix and Disney.
With this acquisition, Amazon will have access to a content library that would include approximately 4,000 movies and over 17,000 hours of television. MGM is well known for the franchises and TV shows it has given us since its inception in 1924 (in the silent movie era) including James Bond, Legally Blonde, The Pink Panther, RoboCop, Rocky and Vikings Watch. and The Handmaid’s Tale. With these in Amazon’s arsenal, it will gain a significant advantage over its competitors like Disney and Netflix.
According to Amazon, the acquisition “will give customers better access” to MGM’s works and “empower” the studio to continue its “great storytelling.”
“The real financial value of this deal is the treasure trove of intellectual property in the comprehensive catalog that we plan to reinvent and develop with the talented team at MGM,” said Mike Hopkins, senior vice president of Prime Video and Amazon Studios, in a statement. “It’s very exciting and offers a lot of high quality storytelling opportunities.” Amazon has also said they will preserve older films.
MGM President Kevin Ulrich notes that the opportunity to align MGM’s rich history with Amazon was an inspiring combination. Prior to the acquisition, MGM was owned by a host of private equity firms, including Anchorage Capital Group, Highland Capital Management and Solus Alternative Asset Management.
“I am very proud that the MGM Lion, which has long evoked the golden age of Hollywood, continues its rich history, and the idea born of the creation of United Artists continues in the way that Founders originally wanted, driven by talent and their vision, ”said Ulrich.
The past few years have not been good for MGM – with the increase in preferences for watching online on streaming services has proven its scourge, and it has had to deal with a series of ownership changes and bankruptcy in recent years. years. Although Amazon’s streaming service has been a relatively small part of the empire, it has over 200 million subscribers and released over 175 videos (including movies and shows) last year. The acquisition of MGM, with its rich collection, would be a boon for Amazon.
He has his own studio, although he has yet to make a name for himself in the film industry. One of his most watched projects is the highly anticipated (and very expensive) series based on The Lord of the Rings by JRR Tolkien, something that I personally am a huge fan of.
With all of this great content coming to Amazon Prime, it would be interesting to see how the platform now stacks up against Netflix and Disney +.