A bombshell hit the streaming industry when Amazon purchased a major movie studio, MGM. As Amazon continues to compete with other giants in the streaming industry, it has also set precedent over what we can expect from the streaming wars in years to come.
But how will this impact you, the services you use, and the content you consume? Here are the details of the acquisitions, as well as what it means for the future of streaming services.
Amazon Acquires MGM for $4.45 Billion
In a massive move for the streaming industry, Amazon has purchased major studio MGM for $4.45 billion and has taken over all media content. The acquisition is the second largest by Amazon and only falls behind its purchase of Whole Foods.
It's not that surprising, given that Amazon spent a total of $11 billion on video and media in 2020 and $7.8 billion in 2019. The latest purchase is a sign that Amazon is here to stay in the streaming wars and plans on spending as much as it takes in order to remain at the head of the pack.
Now, Amazon has access to over 4,000 movies and over 17,000 shows that make up the MGM media library. The plan is not just to take old shows or movies and put them on Prime for viewing, but to develop new and original content from the troves of IP that MGM carries; all to help the goal that whichever streaming service offers the best original content will ultimately drive more subscribers.