Amazon will buy MGM for more than $ 8 billion. Your Move, Netflix

Bond moves In the house that Bezos built. it’s the truth. After a week of speculation, today Amazon announced It has already sealed a deal to buy MGM, the home studio rockyAnd the RobocopAnd yes James Bond. The deal, valued at $ 8.45 billion, is the second-largest acquisition by Amazon to date, and ranks second after $ 13.7 billion purchase of Whole Foods In 2017. It is also the latest force step in an ongoing battle for control of the region Flowing wars, One that indicates what the streaming services will need to do to finally prevail – or at least survive.

In the past – well, 2008 – streaming services mostly offered licensed content from other studios. A few hundred movies here, a few thousand hours of TV there. As they grow, of course, they are Expanded into the engaging world of original content. Netflix It found early success with House of cards; Amazon started making shows like transparent; Hulu Offered The Handmaid’s Tale (It is, by the way, produced by MGM.) Streamers have even begun to look for awards with author-driven movies like Manchester by sea And the Marriage story. But then, the studios themselves got into the broadcast game, and launched their own services–Disney +, Paramount +, anything else attached to a math code – and the broadcasters were forced to ramp up their production from the original assets as those companies recovered the content they licensed. (we will miss you, Office. See you on a peacock. good bye, friends. I’ll pick you up on HBO Max.) With Amazon buying the big ticket for MGM, this conflict enters a new phase: Streaming services buy studios directly

It’s an inevitable progress, and it’s no surprise that Amazon does it first. Unlike Netflix, it failed to produce reliable original results. And unlike NBCUniversal, for example, its corporate model isn’t just entertainment. It is also a Cloud computing company, Mega retailer, and grocery store chain, to name a few. Net income was more than $ 21 billion in the last year alone. It’s easier for Amazon to search into sofa cushions to buy MGM and its 4,000 movies and 17,000 TV shows than the company’s attempt to launch a new studio with equal weight – especially considering How rocky it was trying to do exactly that with video games. The company all said so in its announcement, with Mike Hopkins head of Prime Video at Amazon Studios declaring, “The real financial value behind this deal is an IP treasure in depth. [MGM] Catalog “noting that Amazon has plans to develop this intellectual property for future projects.

However, the move could spur other broadcasters – and smaller studios – to do deals of their own so that they are not left out. This could mean that Netflix is ​​starting to shop, or smaller players like Apple TV + are starting to strike deals with indie studios like A24 to secure all of their content, rather than one movie here or there. “There is something that we have to give, something has to change for them to initiate deals, partners or acquisitions,” says Sarah Henschel, flow analyst at Omdia research. “I think the smaller studios will be acquired, or Apple TV + and the others will strike deals with them.”

It’s a slightly different scenario, but last week AT&T announced that it was Spin WarnerMedia to merge with Discovery, effectively putting the company behind DC Comics and HBO films under the same roof as HGTV and Shark Week. Nobody knows exactly what this new outfit will look like, but presumably, whatever the type of DiscoveryMax + results, it will be a big part of the trend toward media consolidation that’s happening right now, which will also include buying signage or doing deals with studios, or services merging with each other. To consolidate their IP stocks. It is R&D through mergers and acquisitions.

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