Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Amazon and the Lion – Buying MGM is another shrewd move in Amazon’s quest to dethrone Netflix from streaming dominance

Amazon and the Lion – Buying MGM is another shrewd move in Amazon’s quest to dethrone Netflix from streaming dominance

Financial experts think it’s a mistake, but Amazon’s billion-dollar gambit to purchase MGM could help it take over Hollywood.

In its quest to be a top-tier player in the home video streaming wars, Amazon has made some big moves, such as committing upwards of $1 billion for the TV rights to The Lord of the Rings.

But that's pennies compared to Amazon's recent acquisition. The retail giant has just bought MGM – one of the oldest studios in Hollywood – for $8.45 billion.

Though many analysts were surprised at this huge price tag (lots of them said Amazon paid too much), the ‘Zon is currently so flushed with cash from its “pandemic boom” where everyone who was locked down during the Covid-19 crisis began using their services, they now have money to burn...

And they're choosing to burn it on the one thing much of Hollywood is desperately scrambling for – content.

It is no secret Covid-19 threw Hollywood for a loop, forcing the industry to essentially change its entire business model, shifting from theatrical releases to their streaming services as theaters shut down and people were trapped in their homes.

But in addition to that, many productions that Hollywood studios had going on were shut down and delayed until the coronavirus could be managed enough to continue producing content safely. This delay in creating new content, while the demand for streaming content increased, has put Hollywood in a “content crunch,” where studios scramble to produce more TV shows and movies for their streaming subscribers to consume.

One studio that wasn’t even competing in the “Streaming Wars” was MGM. This is mostly due to the fact that MGM, which was once the biggest studio in Hollywood, now is a minor player in the entertainment industry after the studio was stripped bare by Kirk Kerkorian, who bought the studio in 1969 and auctioned off the majority of its value over the decades.

Previously, MGM’s vast library of content (which included the world-famous James Bond franchise) was licensed out to other streaming services. But now that Amazon is acquiring it, the vast back catalog of movies and TV shows that belonged to MGM is now firmly in Amazon’s eager hands.

This gives Amazon a HUGE injection of content for its streaming service, Amazon Prime, as well as a bountiful number of titles to spin off into new content, such as movies and original series. Some of the entertainment properties Amazon now controls are:

The James Bond franchise – one of the oldest and most profitable franchises in cinema history. Not only could we see exclusive releases of future Bond movies on Prime, but also some James Bond-related TV series and potential spin-offs.

The Rocky Franchise – Rocky and its successor Creed have been time-honored hits, and Sylvester Stallone has long talked about wanting to do a TV series version of the Italian Stallion. Now that Amazon owns the property, that may just be what happens.

The Stargate Franchise – Stargate has proven to be a beloved sci-fi property for decades, with a large fanbase and numerous television series; however, it has never been able to meet its full potential under MGM. But with Amazon backing it, this could be Amazon’s chance to compete with Paramount’s Star Trek and Disney’s Star Wars with their own science fiction epic with huge licensing potential.

The RoboCop Franchise – one of the most popular characters from the 80s fell flat when MGM attempted to reboot it, but RoboCop is still widely beloved and Amazon has the chance to re-launch it as a potential original series.

Other notable MGM properties now in Amazon’s possession are 21 Jump Street, The Addams Family, Bill & Ted, Tomb Raider, Poltergeist, Teen Wolf, G.I. Joe, and The Girl With The Dragon Tattoo. Not to mention classics like Raging Bull, Thelma & Louise, The Magnificent Seven, 12 Angry Men, and 4,000 other movies.

The deal also gives Amazon 17,000 TV shows from MGM’s vault, including modern hits like Fargo, Vikings, and the hugely popular The Handmaid’s Tale. Interestingly enough, MGM also holds the rights to The Silence of the Lambs, which could be spun into its own original series franchise on Prime, much like Tom Clancy’s Jack Ryan was.

One notable exception is MGM’s entire slate of movies prior to 1986, which belong to WarnerMedia. So Amazon won’t be featuring Gone with the Wind, the Wizard of Oz, or Singing in the Rain anytime soon.

Speaking of WarnerMedia, its parent company AT&T took on billions in debt as it tried to ramp up content creation to compete in Hollywood, eventually consolidating all its studios and networks – including powerhouse HBO – under one umbrella. But now that strategy seems to have failed, with AT&T merging its WarnerMedia holdings with Discovery. Let’s not forget, AT&T spent $85 billion acquiring Time Warner.

And in the wake of Disney acquiring 20th Century FOX for $71.3 billion, along with the WarnerMedia boondoggle, the $8 billion Amazon is paying for MGM seems like a real bargain!

Amazon acquiring MGM is a huge move for the company both in terms of future content and distribution. Amazon Prime is already one of the most popular (and profitable) subscription services in the world, and the more people Amazon can tempt to sign up (and stay subscribed), the stronger their bottom line will be.

It also positions them to compete even more with other streaming services, such as Disney+, Paramount+, Peacock, AppleTV+, and the big daddy of them all – Netflix. Especially once the new TV shows and movies that are in production are set to be released. The new James Bond film No Time To Die will be exclusive to Prime when it’s released on streaming, and the new Lord of the Rings show is set to give Game of Thrones a run for its money in terms of epic fantasy draw.

This doesn’t even touch on the licensing potential the MGM purchase gives to Amazon. After all, licensing is where a great chunk of money is made in Hollywood. James Bond alone is said to be worth $2.8 billion in merchandising and co-marketing. With revenue potential like that, multiplied across all the other franchises from MGM, Amazon is set to make its acquisition costs back in no time!

In short, this could be the coup Amazon needs to dethrone Netflix as the top streamer of choice – or at least give it a run for its money.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×