Amazon just revealed they made a $8.45 billion deal with MGM, James Bond's producer and one of Hollywood's most legendary film companies, providing them an immense library of films and television series, and boost the contest with streaming competitors lead by Netflix and Disney.
MGM, in addition to "The Godfather" and "SMNF," is responsible for some of Hollywood's most memorable moments, including "L.A. Law" and "Dumbo." The studio also produced "Grease" and "Back to the Future II." Both films have earned well over $2 billion worldwide, but in recent years the company has been unable to escape the shadow of its former self, and has seen a number of its classic movies lose their ever-growing popularity with movie viewers. MGM is known for producing blockbusters, but its recent string of flops - including "Point Break" and "Fast and Furious" - have done nothing to slow its development and popularity rate.
In order to up against a slew of competitors, including Netflix Inc, Walt Disney Co's Disney+, HBO Max, and Apple TV+. Amazon Prime Video have raised their expenditure and extended on foreign market, catching internet binge viewing shows from the pandemics. The deal provides Amazon with more material to help it compete in the harsh world of streaming.
It is expected that by being coupled with MGM, Amazon Prime Video is making the move to leverage the strength of its own brand name to bolster its position in the video streaming business.
"With new entrants to streaming from all the major studios and TV networks, Amazon has to increase its commitment to video or risk losing engagement," said Jim Nail of research firm Forrester as cited from reuters.com
The deal is Amazon.com's second-largest acquisition, behind Whole Foods Market, which it purchased for $13.7 billion in 2017.