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Amazon Just Buy MGM For Over $ 8 Billion. Your Move, Netflix

The deal is moving entering the house that Bezos built. That’s right. After a week’s reflection, today Amazon announced really decided to buy MGM, a studio apartment Rocks, RoboCop, and, yes, James Bond. The deal, valued at $ 8.45 billion, is the second largest on Amazon here, second only $ 13.7 billion for his whole Whole Foods in 2017. It is also a recent strong move to the ongoing turf in war promotional battles, which outlines what search operations will need to do in order to ultimately win – or survive.

In the old days – OK, 2008 – promotional services mainly provided content from other studios. Hundreds of movies here, thousands of TVs there. As they grow older, obviously, they are it was developed into a beautiful world. Netflix found initial success with Card House; Amazon started making shows like Unchanged; Hulu gave The Story of the Servant (which, incidentally, made by MGM). Advertisers even started shooting awards and pilot videos like Manchester Panyanja and Marriage Matters. However, the studios joined the show, and started their work –Disney +, Paramount +, anything with a mathematical identifier – and operators had to add to their list when the companies re-acquired the license. (See you, Office. See you at Peacock. Baby, Friends. Let’s catch up on HBO Max.) With Amazon’s biggest ticket purchase for MGM, this struggle is starting a new phase: the advertising of studios buying a studio.

It’s an inevitable growth, and it’s no surprise that Amazon is starting to do this. Unlike Netflix, it has failed to deliver accurately. And on the contrary, say, NBCUniversal, its kind of company is not just fun. That’s it a cloud operating company, a best-seller, and a grocery store, to name a few. It raised more than $ 21 billion last year alone. It’s easier for Amazon to dig into the seats to buy MGM and its 4,000 movies and 17,000 TV shows than the company would try to set up a new studio with the same heft – especially how hard it is to try to do the same with video games. As soon as the company made the announcement in a statement, Amazon Studios Prime Minister Mike Hopkins announced that “the real value of these products is the deep IP economy. [MGM] catalog ”and realizes that Amazon has a vision for creating future career skills.

However, this move could result in some streamers and small studios engaging in commercial activities to avoid being left behind. This could mean that Netflix is ​​starting to shop around, or smaller players like Apple TV + are starting to put ink and indie studios like A24 to protect all content, not just video here or there. “Something has to offer, something has to be shaken to start engaging in relationships or partners or shopping,” says Sarah Henschel, Omdia’s marketing researcher. “I think the studio can be found, or Apple TV + and others have agreed to it.”

It’s a little different, but last week AT&T announced it was spinning WarnerMedia to partner with Discovery, placing the company behind DC Comics and HBO movies under a similar roof with HGTV and Shark Week. No one really knows what the new outfit will look like, but probably any kind of DiscoveryMax + effect, and a large part of the current media connections, which also includes advertisers buying or cutting studios, or collaborative services to integrate their IP shares. It is the R&D of M&A.

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