Amazon just bought MGM for more than $8 billion. Netflix, your move

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Bond is moving Enter the house built by Bezos. This is real.After a week of speculation, today Amazon announced It has indeed reached a deal to acquire the MGM studio. Rocky, Robocop, Yes, James Bond.This transaction is worth 8.45 billion U.S. dollars and is Amazon’s second largest acquisition after Acquired Whole Foods for $13.7 billion This is also the latest momentum in the ongoing turf battle in 2017 Streaming wars, The signal indicates what the streaming service will need to do to win (or at least survive) in the end.

In the past (OK, 2008), streaming services mainly provided content licensed from other studios. There are hundreds of movies here, and thousands of hours of TV there.Of course, as they grow, they Expanding to the glorious world of original content. Netflix Discover early success House of Cards; Amazon started making images Transparent; gourd provided Maid’s story (By the way, it is produced by MGM).Streamer even started to fight for film-led movies like movies Manchester by the Sea with Marriage story. But later, the studio began to get involved in streaming games and launched its own service.Disney+, Paramount (Paramount +) and other content with mathematical symbols, because these companies withdraw the content they licensed, so the ribbon must increase the output of its original. (so long, office. See you peacock. Goodbye, friends. Through Amazon’s large purchase of MGM, this struggle has entered a new phase: streaming services directly purchase studios.

This is an inevitable progress, and it’s no surprise that Amazon will do it first. Unlike Netflix, it cannot reliably produce original songs. Moreover, unlike NBCUniversal, its business model is more than just entertainment.This is also Cloud Computing Company, Large retailers and grocery store chains, etc. Last year alone, its net income exceeded 21 billion U.S. dollars.For Amazon, it is much easier for Amazon to dig out the cushions on the sofa to buy MGM and its 4,000 movies and 17,000 TV shows than the company’s attempt to set up a new studio with the same weight, especially considering that How hard it is to try to do this through video games. The company said almost all in its announcement. Mike Hopkins, the premier video director of Amazon Pictures, declared: “The real financial value behind this transaction is the IP treasure house that is deeply rooted in the hearts of the people. [MGM] Catalog” and pointed out that Amazon has plans to develop this intellectual property for future projects.

However, this move may induce other broadcasters and small studios to enter into their own deals without being excluded. This could mean that Netflix is ​​starting to shop around, or that smaller players (such as Apple TV+) are starting to sign deals with independent studios like A24 to ensure the safety of all their content, not just here or there Of a movie. Sarah Henschel, a streaming analyst at research firm Omdia, said: “Some things have to be paid, and certain things will definitely make them start a deal, partnership or acquisition.” “I think smaller studios will be acquired, or Apple TV+ and other studios will enter into deals with them.”

The situation is slightly different, but just last week AT&T announced that it was Spin WarnerMedia merged it with Discovery, effectively placing the company, DC Comics Movies and HBO under the same roof of HGTV and Shark Week. No one knows exactly what this new suit will look like, but probably no matter what DiscoveryMax+ results, this will be an important part of the ongoing media integration trend, which also includes streaming media purchases or cuts to trading studios or Services merge with each other to consolidate their IP inventory. This is M&A R&D.

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