A highlight from Amazon bulks up streaming library with $8.45B MGM acquisition (The Daily Charge, 5/26/2021)
Amazon announced an eight point. Four five billion acquisition of gm storied but troubled studio. That's home of key franchises. Like james bond and rocky. What does that mean for you in the future of its prime video streaming service. I'm roger chang. This is your daily charge here breakdown. This massive deals are media expert johnson. Welcome joan great to be here. So this is the second largest deal. Amazon's history falling behind only the thirteen point four billion whole foods acquisition. So why this amazon want mgm. I mean with amazon. You know it always comes back to like selling your batteries and toilet paper. I mean everything than amazon does at least anything connected with prime. That prime word all comes back to getting people into that membership service whether that's because you're coming in through amazon prime video because you want to watch james bond movies there through this purchase with them. Gm or if you're coming into prime just by those batteries toilet paper it really cares about getting those prime members regardless of the reason you join because they know not only do you get that membership subscription but those people that are prime members spend more on amazon so ultimately like every other kind of major move that amazon in terms of like anything to do with its retail operation. It all comes back to prime and selling you more stuff. The strategy here is though that amazon does believe that it has to be bigger to compete in. Hollywood it's it's media and entertainment wing. The amazon prime video and amazon studios wing. They recognize that especially as more and more companies in media. Glommed together and you have to be a giant that it has to compete like a giant in hollywood to even if it doesn't actually have ambitions to be literally like a turn mgm into the next disney or the next even like the next sony pictures entertainment like even if it doesn't have ambitions like that to take the studio and reinvigorated into another glorious studio heyday realize it has to be giant in hollywood and this is one step on that path to hopefully becoming giant that. That's an interesting point. Because i've i've always sort of viewed prime video as this added right like i primarily sign up for prime delivery service and that's primarily how i use it and this was a nice throw in curious like why they feel like they need to have a skill to have that that size of mgm.