Amazon which is a multinational tech giant has been competing against the OTT platforms such as Netflix, HBO studios and Disney+Hotstar with their Amazon Prime App. The OTT platform of Amazon Prime has announced its recent acquisition of MGM studios. Let’s look at the deal and how it is going to help Amazon in the OTT field.
Amazon MGM Acquisition – Latest News
Amazon has finally acquired the legendary MGM studios which is a significantly legendary media company. The deal is said to be around USD 8.45 billion. This is considered to be one of the boldest moves in the entertainment industry.
Amazon’s Future Plan with MGM Studios
Mike Hopkins who is the senior vice president of Amazon Prime Video has conveyed that the real financial value of the acquisition is the collection of the treasure in the deep catalog which they are planning to reimagine and develop together with the talented team of MGM.
He also added that they are very excited and are looking forward to working with the talented team for high quality story telling. The company is planning to leverage the legendary catalog of 4,000 films and 17,000 shows which will strengthen the platform of Amazon.
Kevin Ulrich, the chairman of MGM has conveyed that the combination to align the opportunity of the history of MGM with Amazon is inspiring. But above all Amazon needs more content for Amazon Prime video to stay relevant against the competition.
Buying MGM will provide Amazon Prime video with the access to favorites such as James Bond, Real Housewives and Survivors. It also will improve Amazon Prime’s odds in creating their own originals with a fully fledged studio that has created legendary shows and movies.
The main Ideology behind the Acquisition of MGM and Amazon
The main idea behind the acquisition of MGM is considered not to be the legendary movies or shows or not just to create original shows but to increase the number of subscribers for the OTT platform of Amazon.
Amazon earlier had a stronghold by offering shipping discounts to prime members and attracting more consumers but right now a lot of firms have been offering shipping discounts for its consumers. At the same time, we can’t predict what Amazon would do with MGM’s content and it remains unexpected.
Who is the founder of MGM Studios?
Louis B. Mayer and Marcus Loew are the founders of MGM studios who founded it on 17 April 1924.
When was MGM founded?
MGM studios was founded on 17 April 1924 and It is around 97 years old.
Has Amazon bought MGM?
Yes, Amazon has acquired MGM studios for 8.5 billion dollars to compete against other OTT platforms.
The deal proves the willingness of Amazon to spend more in order to remain competitive in the streaming industry. It is to be noted that the competitors are spending heavily on developing the libraries and producing original content committing billions. This will be a step for Amazon to emerge as a much stronger brand in the streaming market.