{"id":260070,"date":"2021-05-27T00:59:49","date_gmt":"2021-05-26T21:59:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/amazons-deal-to-buy-mgm-puts-it-back-in-streaming-game\/"},"modified":"2021-05-27T00:59:49","modified_gmt":"2021-05-26T21:59:49","slug":"amazons-deal-to-buy-mgm-puts-it-back-in-streaming-game","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amazons-deal-to-buy-mgm-puts-it-back-in-streaming-game\/","title":{"rendered":"#Amazon’s deal to buy MGM puts it back in streaming game"},"content":{"rendered":"

“#Amazon’s deal to buy MGM puts it back in streaming game<\/a><\/strong>”<\/p>\n

\n

Amazon\u2019s big $8.45 billion bet on Hollywood studio MGM comes at a crucial time for the e-commerce giant, which had been losing ground to streaming rivals Netflix, Disney+ and Warner Media<\/a>\u2019s HBO Max. <\/p>\n

While the deal isn\u2019t enough to knock Netflix off its throne, media watchers said it will put Amazon back in the game and trigger even more consolidation as streaming services vie for eyeballs.<\/p>\n

\u201cIt\u2019s a streaming arms race. Amazon really felt they had to step up and give themselves a fighting chance,\u201d said CFRA analyst Tuna Amobi. \u201cTheir options were narrowing.\u201d<\/p>\n

According to Amobi, the Seattle-based company behind shows like \u201cSneaky Pete\u201d and \u201cThe Man in High Castle\u201d needed to take swift action to keep pace in the \u201cbrutal business\u201d of streaming, which was showcased last week with a $43 billion merger between Discovery\u2019s and AT&T\u2019s WarnerMedia.<\/p>\n

\u201cI don\u2019t believe this will be the end of acquisitions,\u201d said the analyst, who noted that media properties like ViacomCBS, Comcast\u2019s NBCUniversal, AMC Networks and movie studio Lionsgate are also ripe for the picking. <\/p>\n

\u201cApp<\/a>le is going to feel the most pressure right now. For them, it\u2019s almost like they have to do something more dramatic,\u201d he said. <\/p>\n

\u201cThey\u2019ve been traditionally more diligent and disciplined in terms of pricing,\u201d he added. \u201cBut the way streaming is shaking out, you will have the top three and right now it seems like the race is to become the forth or fifth, which will lead to more consolidation.\u201d<\/p>\n

According to Amobi, the top three streaming networks are Netflix, Disney+ and HBO Max, although some argue that Amazon, which owns streaming platform Prime Video and Hollywood studio Amazon Studios, is also in position to snag 3rd place. <\/p>\n

That leaves Apple+, Hulu, NBCUniversal\u2019s Peacock and ViacomCBS\u2019s Paramount+, among others, duking it out for the rest. <\/p>\n

Apple, which reportedly spent about $6 billion on original content ahead of the 2019 launch of its streaming service AppleTV+, kicked the tires on buying MGM, but sources buzzed that the price tag was too high for the iPhone-maker.<\/p>\n

But LightShed Partners analyst Rich Greenfield questioned whether the Silicon Valley giant actually needs to join in the acquisition frenzy.<\/p>\n

\u201cApple is a 2 trillion dollar company. I\u2019m not sure they\u2019re struggling in any form,\u201d he said of acclaimed AppleTV+ shows like \u201cThe Morning Show,\u201d \u201cTed Lasso\u201d and \u201cThe Mosquito Coast.\u201d<\/p>\n

\"Amazon's
Daniel Craig as James Bond in MGM\u2019s \u201cNo Time to Die.\u201d <\/figcaption>
MGM<\/span><\/figcaption><\/figure>\n

\u201cIt feels like Apple is going to continue to build content,\u201d he said. \u201cFor smaller companies, there\u2019s going to be increasing pressure to consolidate as scale keeps getting redefined.\u201d<\/p>\n

\u201cIf you don\u2019t consolidate, the odds are we will see some companies become content dealers\u201d and license content to better funded streaming giants, he said. <\/p>\n

Analysts agreed that Amazon\u2019s deal to buy MGM \u2014 the home of the \u201cJames Bond,\u201d the \u201cRocky\u201d movie franchises and popular reality TV shows like \u201cThe Apprentice\u201d and \u201cShark Tank\u201d \u2014 will bolster subscribers to its Prime Video platform. It will also grow Amazon\u2019s surging ad business, which generated $22.4 billion in the past 12 months, they said. <\/p>\n

Amazon Prime currently has 200 million members, 175 million of which use Prime Video, a statistic that can only get better, according to Raymond James analyst Brian Yarbrough.<\/p>\n

\"Amazon's
Amazon\u2019s $8.45B acquisition of MGM Studios is its biggest since it bought Whole Foods in 2017.<\/figcaption>
Anadolu Agency via Getty Images<\/span><\/figcaption><\/figure>\n

And Yarbrough called the MGM pact a \u201cgame changer\u201d when it comes to its advertising potential by creating a \u201cflywheel\u201d of buzzy movies<\/a> and TV shows that Amazon can offer to Prime subscribers, which will attract more eyeballs and even more ad dollars.<\/p>\n

The MGM deal also gives Amazon more gravitas in Hollywood \u2014 something it has been working towards for years. MGM\u2019s pipeline of upcoming Oscar contenders include \u201cRespect,\u201d an Aretha Franklin biopic starring Jennifer Hudson; Ridley Scott\u2019s \u201cHouse of Gucci\u201d starring Lady Gaga and Adam Driver, and Paul Thomas Anderson\u2019s latest flick, \u201cSoggy Bottom,\u201d starring Bradley Cooper.<\/p>\n

The Jeff Bezos-led company has had difficulty making its own hit films in the past and has instead invested boatloads of cash for exclusive movie rights. <\/p>\n

During the pandemic, Amazon reportedly shelled out $125 million for the rights to \u201cComing 2 America,\u201d $80 million for Sacha Baron Cohen\u2019s \u201cBorat Subsequent Moviefilm,\u201d and $200 million for \u201cThe Tomorrow War,\u201d starring Chris Pratt. <\/p>\n

Amazon has also revved up its own Oscar ambitions, scooping up the rights to \u201cSound of Metal,\u201d which netted 6 Oscar nominations and won two awards for sound and editing. It has also hired back Jeff Blackburn, an Amazon vet with strong ties to Tinseltown, to help grow its entertainment unit. <\/p>\n

Greenfield said he doesn\u2019t see the Amazon deal upsetting the streaming world order, but instead \u201cvalidating\u201d their push into the space as Netflix has done with its $20-billion-a-year spending on content and Disney\u2019s $71 billion acquisition of Fox\u2019s media properties.<\/p>\n

But Scott Schiller, a former NBCUniversal exec who now works as global chief commercial officer at media marketing firm Engine, sees top companies like Netflix feeling the heat of rising competition \u201cwhether they admit it or not.\u201d<\/p>\n

\u201cFor Netflix, this deal adds continued pressure to their [ad-free] business model,\u201d Schiller said. \u201cThere\u2019s only a finite amount of money consumers will spend on streaming services.\u201d\n <\/p><\/div>\n

If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n

\n

For forums sites go to Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

\n

If you want to read more News<\/a> articles, you can visit our News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Amazon’s deal to buy MGM puts it back in streaming game” Amazon\u2019s big $8.45 billion bet on Hollywood studio MGM comes at a crucial time for the e-commerce giant, which had been losing ground to streaming rivals Netflix, Disney+ and Warner Media\u2019s HBO Max. While the deal isn\u2019t enough to knock Netflix off its throne,…<\/p>\n","protected":false},"author":1,"featured_media":260071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/05\/prime-mgm-james-bond-001.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[107329,2758,5029,1569,70584,29335,1377,1372,5040],"class_list":["post-260070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-26-21","tag-amazon","tag-apple","tag-disney","tag-mergers-acquisitions","tag-mgm","tag-netflix","tag-streaming","tag-streaming-wars"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=260070"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/260070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/260071"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=260070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=260070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=260070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}