Amazon has finally grabbed Metro-Goldwyn-Mayer (MGM), with the deal managing to dodge a blockade by the Federal Trade Commission (FTC). For $8.45 billion, Amazon is getting its hands on the entire MGM catalog, which is quite impressive.
Furthermore, MGM will be part of Amazon's future content creation endeavors.
Why Did Amazon Buy MGM?
The deal between Amazon and MGM has been under preps for about a year. The purchase, however, had to be approved by the FTC to ensure the antitrust law wasn't infringed, which is a lengthy process.
For many years now, Amazon has been on a path to increase its already-vast collection of movies and shows, investing billions in production, trying to add more content for its subscribers.
What Amazon Buying MGM Means for Prime Video
The impressive part about the purchase is the fact that soon enough, Amazon will feature a ton of MGM content. What MGM content? Since MGM was founded in 1924, there are plenty of movies to brag with, starting with the James Bond series, Rocky, The Addams Family, Legally Blonde, and more. More recently, they've released House of Gucci.
Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said:
"MGM has a nearly century-long legacy of producing exceptional entertainment, and we share their commitment to delivering a broad slate of original films and television shows to a global audience."
In short, for Amazon Prime Video subscribers, lots of titles are heading their way, which may justify the price hike. The entire catalog features more than 4,000 movies, 17,000 TV episodes, as well as recordings of the Academy Awards and Emmy Awards.
Certainly, not all of it will arrive on Amazon Prime Video at once, especially with ongoing licensing deals. The future, however, will undoubtedly bring in a lot of titles. MGM's Chris Brearton, chief operating officer, has expressed his excitement for the company's brands, movies, and series and the entire team and creative partners to join Prime Video.
Not only will Amazon get its hands on thousands of MGM creations, but it will also get to have more exclusive content in the future.
Is Amazon Prime Video Getting More Expensive for Nothing?
Many have been wondering whether the recent price hike of Amazon Prime Video made sense, but with the incoming content and future projects lined up alongside MGM, it seems like a justifiable expense.
