Why Amazon has to buy MGM
If Amazon wants Prime Video to become a real threat to Netflix, then it’s a mandatory move. They could get 4000 films and 17,000 hours of TV programming for $9bn.
Amazon has recently upped its focus on entertainment, and now has more than 200 million Prime members worldwide. Jeff Bezos recently told investors that 175 million of those are streamed Prime Video content in the past year. The company spent $11 billion on streaming rights last year, including $1 billion on NFL games alone. It’s even launched a free streaming service called MiniTV in India.
Amazon needs MGM, if the company wants to battle for global streaming supremacy. Amazon must acquire them, if the company wants to catch up to Netflix. MGM claims to own one of the world’s most extensive library of premium film and TV content. They own a library of 4,000 film titles and 17,000 hours of TV programming. Besides that, Amazon would get the evergreen, 59-year-old James Bond franchise.
This is why Amazon considers buying MGM for $9 Billion. The timing isn’t incidental either, after AT&T announced a $43 billion deal to merge WarnerMedia with Discovery. The deal is expected to close in the middle of 2022.