Amazon had already played a key role in the film and streaming business, but on July 26, the tech company acquired Metro-Goldwyn Mayer Studios and soared to WarnerMedia and Disney. Rowe founded MGM in 1924 and has grown into one of Hollywood’s most important studios. But what is Amazon doing in a movie studio nearly 100 years ago?
Amazon Prime Video is fundamentally different from other streaming platforms in that it is part of a larger ecosystem. Customers can get Prime Video individually, but the company’s bigger goal is to showcase the entire (more expensive) Prime service, including faster Amazon delivery, Amazon Music Prime, Prime Shopping, and Prime Reading. This is the same obvious worthwhile marketing that movie theaters use when they make a small bag just $ 1 cheaper than a huge bag. Why spend $ 8.99 only on Amazon Prime Video when you can get music, shipping, and everything else for a few dollars?
That’s why Prime Video’s goals are more specific than any other company. New streaming movies and shows help Amazon keep customers subscribed to the service, but they don’t have the same level of pressure that services like Netflix, which are completely dominated by content, feel. This creates a slightly higher advantage for Amazon to bet on large projects in the hope of adding a few people to the theoretically essential ecosystem. It’s all additive, so there can be a lot of variability in Prime Video projects. That’s where MGM’s IP comes in.
The MGM archive is full of recognizable titles. The biggest is the James Bond franchise. Due to collection ownership, Amazon is now The Silence of the Lambs- Hannibal Lecter — I don’t own the rights to Creed, Legally Blonde’s movie, Robocop, or The Pink Panther. Unfortunately, one thing that isn’t included in the deal is streaming rights to most of MGM’s classic Hollywood titles. Thin man, Ben Har, Singin in the Rain, And Wizard of Oz, Which one Owned by Turner Broadcasting And WarnerMedia..
According to Amazon Latest quarterly financial reportThere are over 200 million Prime subscribers, of whom 175 million are streaming something on Prime Video.New movies like Tom Clancy’s Without Rimmers Keeping the service in the spotlight, it’s hard to imagine that the blockbuster acquisition from Paramount Pictures played a major role in increasing the total number of Amazon Prime subscribers.
But owning a major franchise like James Bond means becoming the exclusive destination for a huge number of fans to sign up for a subscription to know what’s next. I will. Having played the Bond movie host for years (and then lost to Hulu and Netflix every few months), Amazon was the one who streamed the sequel, and more importantly, the Bond movie without signing up for Prime. I am familiar with the number of people who rented.
Internet giant Broccoli family, the franchise’s ruler dynasty, agreesIt’s easy to imagine that the version rebooted after November of this year will take shape. I have no time to die — — This will be an Amazon project that is likely to hit Prime Video shortly after arriving at the theater. The deal also frees MGM movies from the traditional studio box office competition.The studio doesn’t have to Bet the business A blockbuster movie that earns $ 1 billion because it’s worth more than the first run in the theater.
But perhaps even more lucrative is the event series born of the idea of bingeable TV and MGM’s IP. Owning the next Bond movie sounds flashy, but creating the first James Bond TV series may be the Golden Goose that Amazon is hoping for the entire acquisition.
When it comes to reducing churn (a streaming service term for unsubscribing customers), there’s no such thing as a hit series. The 10-episode season can represent a 3-month subscription, and there’s plenty of time to get into the habit of using something. Or at worst, even if you cancel the sub at the end of each season, that’s why someone comes back every year. This is a strategy that Amazon is good at. He produces the Wheel of Time series of ambitious times, spending nearly $ 500 million in the first season of the Lord of the Rings series. Add James Bond on top and it feels like a natural fit.
And that’s the only possibility. Amazon can create a boxing series centered around Creed Champ, and can create either a live-action version of Tomb Raider, Poltergeist, or any other permanent IP of MGM. None of these may have the same pull as 007, but keep subscribers, not to mention the studio’s library of movies since 1986, which helps to slightly enhance the historic offering of Prime Video. May be useful for.
Amazon CEO Jeff Bezos confirmed at a shareholders’ meeting held the same day the deal was announced that these franchises contributed to the company’s acquisition of MGM.
“The acquisition paper here is very simple. MGM has a huge catalog of very popular intellectual property,” Bezos said on the phone. “And MGM’s talented people and Amazon Studios With talented people, we can rethink and develop that IP for the 21st century. It’s a lot of fun and story lovers will be big beneficiaries. “
Amazon’s acquisition of MGM strengthens Prime Video’s back catalog while studioing the nostalgic feed needed to compete with Disney Plus or WarnerMedia, which intends to cannibalize every bit of IP to attract attention. To provide. It’s unclear if that strategy will work, or if the subscribers will need a little more originality. Amazon is working on an expensive ongoing series strategy, but neither of those huge expensive shows has actually come out yet. The Lord of the Rings series may not need to support Amazon alone, but it still needs to justify its hefty price tag, and $ 8.5 billion is a lot of rationale to cover. is.