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Amazon finally acquired MGM after days of continuous reporting about the deal. The contract was signed and it was said to be something historic because Metro-Goldwyn-Mayer is a legendary studio in Hollywood.
Amazon purchased MGM Studios for $8.45 billion and with it, the tech and e-commerce company just obtained a huge collection of media content. The content alone is overwhelming because it includes numerous popular media pieces that have been around for a long time and still remain popular to this day.
Amazon’s significant media acquisition this year
As per CNBC, Amazon is aiming to compete with big players in the streaming market, which means it plans to go against Netflix, Hulu, Disney Plus, HBO Max and other brands by providing its own Prime Video with amazing content.
Now that it has officially purchased MGM Studios, it means that it can now use its large library of all-time favorites series, movies and reality shows such as “Rocky,” “James Bond,” The Wizard of Oz,” “The Handmaid’s Tale,” “Survivor” and “Real Housewives.”
These titles and a lot more others can be added to Prime Video as exclusives. It can be said that its acquisition of MGM is a strategic move to attract more subscribers for Amazon Prime.
Currently, it was mentioned that Prime has over 175 million subscribers and they have streamed movies and TV shows in the previous year. Prime subscribers also enjoy free shipping, but with the new media content that it will be offering after buying MGM, it was predicted that more people will sign up because of this.
The gains from the MGM mega-deal
More sign-ups will also mean more sales for the Amazon e-commerce store. Thus, it is clear that there is a lot to gain from this sealed deal. As per CNN Business, MGM Studios’ extensive library consists of more than 4,000 film and 17,000 TV show catalogs and these will all belong to Jeff Bezos’ company now.
“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Amazon Studios and Prime Video senior vice president, Mike Hopkins, said. “It’s very exciting and provides so many opportunities for high-quality storytelling.”
Finally, Jeff Bezos said that Amazon is really excited to have MGM on its turf. He is looking forward to developing the vast catalog and intellectual property (IP) that they acquired for this century.
