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| Why did Amazon spend $8.45 billion on MGM Studios? |
In late May, Amazon announced that it had completed a $9 billion acquisition of MGM Studios.
This is the second largest acquisition in the company's history, which has raised many doubts about the deal.
For example: Why is it now? How does Amazon plan to tap into MGM Studios' massive library?
However, Amazon does have a video streaming service!
Amazon has spent billions of dollars producing exclusive video content, but it hasn't competed strongly with other video streaming services.
Therefore, it is necessary to have an extensive MGM visual content studio and to have the intellectual property rights.
It can help make some really popular movies like the James Bond series, and it's not just meant to compete with other streaming services.
The main goal is to attract buyers to Amazon by offering exclusive content offers to Amazon Prime subscribers.
How is it?
Amazon's acquisition of MGM is very significant because it wants to play a completely different game.
Not only do you want to compete in the content industry, but you also want to collect all this exclusive content by subscribing to the service (Amazon Prime) to give you free shipping and other gifts to buyers on Amazon. It's Amazon's most powerful weapon. .
The company's acquisition of MGM Studios presents a huge opportunity to make films that everyone has heard about and still want to see.
Movies like James Bond and Rocky have grown into several franchises and won't end soon.
Amazon's full intellectual property guarantee will ensure that these popular movies continue to appear in the online streaming content market.
Amazon wants to follow in the footsteps of its predecessors:
Amazon hopes to emulate Disney, which liquidated the company's files after acquiring Marvel Pictures.
This has turned many superhero movie series into very popular titles.
So, in order to get into this game, he has to own things instead of renting them in order to control everything.
In the past, movie studios like Disney allowed video streaming companies like Netflix and Amazon to rent their old TV shows and movies, but those days are gone.
At the same time, it is becoming increasingly difficult to find studios that produce great movies and TV shows.
A company like Sony is out of reach now because it has long-term contracts with Netflix and Disney.
So Amazon has to buy a big studio to stay there, which makes it more competitive.