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Amazon and MGM: Tech group buys traditional Hollywood studio

What was already announced in 2021 is now a certainty. The MGM film studio is now officially part of Amazon Prime Video. Thus Amazon’s streaming service now appropriates one of the most traditional film studios in the entire history of Hollywood.

EU Commission approves

That both MGM and Amazon Prime Video agree to the acquisition, we already know since May last year. At that time, both companies announced that MGM would be transferred to Amazon’s streaming provider for a purchase price of approximately $8.45 billion. The deal, which has long been wrapped up, now seems perfect. So there was only one possible obstacle standing in the way of the purchase. And that was the EU Commission. After all, they first wanted to check whether a takeover of this kind would be in line with European competition law. But the EU has now given its blessing to the takeover, making the deal perfect for Amazon. Obviously, the two companies reacted quickly. Because immediately after the EU gave its blessing, Amazon reported that the payment was completed.

More quality for Amazon Prime Video?

While the expense is unlikely to be more than peanuts for a tech company of Amazon’s size, the company nevertheless expects much good to come from the acquisition. In particular, it wants to use the expertise of the tradition-rich film studio to produce high-quality films and series. The takeover takes on a special flavor when you consider that Netflix is also said to have been interested in MGM. The leader among the streaming services is sure to be very annoyed. But who exactly is behind MGM aka Metro-Goldwyn-Mayer Studios?

The name will certainly not mean much to the younger ones among you. Older people, however, can certainly remember the passionately roaring lion’s head in the opening credits of almost every second movie. If you take a look at the franchises that the studio, which is now almost 100 years old, has produced, it should click with almost everyone. In addition to timeless classics like Ben Hur and 2001: A Space Odyssey, for example, the Hobbit trilogy was also produced here. The latter makes it clear what Amazon might be aiming for here. After all, the premiere of the company’s own Lord of the Rings series is coming up this fall. So is Amazon perhaps planning new cinematic spin-offs set in Middle Earth?

Combined offensive for more content

It’s not that easy to survive in the streaming market, given the growing competition from Netflix and Disney+. Netflix is showing how this can best be achieved. For years now, it has been noticeable that the provider is increasingly relying on in-house productions. This is the only way to become independent of the ongoing licensing war. In particular, Disney’s entry into the streaming market was a major burden for many other providers. After all, the rights to iconic Disney classics such as The Lion King fell away at the same time. But, what many forget, is the fact that Disney today is still much more than just Mickey Mouse and co. In the meantime, the huge studio holds the rights to the entire MARVEL CINEMATIC UNIVERSE as well as STAR WARS.

These are real money printing machines. In order to combat Disney’s threatening supremacy, there is only one thing that can be done – provide content yourself. Accordingly, the already very active Amazon Studios are now to be supplemented by MGM. On top of that, of course, MGM’s series and films will also be available on Amazon Prime Video, thus expanding the range. The only question is how Amazon will proceed. The licensing policy in particular is likely to be an exciting topic. After all, the question arises whether the streaming service of the tech company would then like to use MGM productions in the form of numerous classics only for themselves or also earn money by granting licenses.

Does a price increase threaten?

The expansion of the own offer together with own productions reminds nevertheless very strongly of the procedure of Netflix. However, it is also to be feared that Amazon will completely follow Netflix’s approach. This would also include price increases. Netflix has surprised its customers with increased subscription costs more often lately. A look at the US makes it clear that Amazon Prime Video customers are not immune to this either. Subscribers there now have to pay more for their account. However, the price increase so far only affects new customers and not (yet) existing ones.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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What was already announced in 2021 is now a certainty. The MGM film studio is now officially part of Amazon Prime Video. Thus Amazon’s streaming service now appropriates one of the most traditional film studios in the entire history of Hollywood. EU Commission approves That both MGM and Amazon Prime Video agree to the acquisition, … (Weiterlesen...)

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