Amazon Acquires MGM Studios
The number of A-list franchises that are sure to see new chapters on the small screen grew significantly with the news of Amazon’s purchase of MGM studios on Wednesday. Brands will soon have even more opportunities to star alongside the world’s biggest stories, such as the “James Bond” and “Creed” franchises, as a result of this blockbuster deal. The acquisition could also open up new opportunities for measurement and shoppable experiences.
Big Tech Continues Its Takeover
The acquisition represents a major milestone in the tech sector’s push into entertainment, which has been focused more on building than buying content. While Amazon has already built its own movie studio, the addition of MGM will significantly strengthen the quality of its film content while greatly increasing the breadth of the overall library, attracting even more subscribers to the platform.
A Bright Future for Brand Integration
The acquisition will also mean a deeper future for brand integrations in popular MGM blockbusters like the “Bond” franchise and “Creed”. The connection to commerce makes brand tie-ins even more shoppable. Amazon has evolved into the biggest online shopping destination in no small part due to voice activated shopping capabilities via Alexa and MGM unscripted shows like “Shark Tank” and “Survivor” have the potential for natural product placements and brand messaging, making integrations even more impactful.
Consolidation Heats Up
Accompanying the announcement of the WarnerMedia-Discovery deal last week, there is great speculation that major media companies are moving quickly to acquire the few remaining independent media assets to bolster their content libraries and keep up with the competition. MGM was one of the few remaining assets available for purchase. Will the handful of other studios and networks like Lionsgate and AMC Networks be next?
Amazon is adding 21,000 new movies and TV shows to their catalog with the purchase. While the $8.45 Billion price tag is a headline grabber, the amount of new offerings that Amazon Prime Video and IMDb TV will now have to offer subscribers should be a game changer in the streaming wars. Additionally, the opportunity to enhance and expand popular franchises with new originals is a page out of the Disney+ playbook that is incredibly exciting for both fans and the brands looking to connect with them.