Amazon’s Hollywood ambitions are very old school

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From everything Jeff Bezos once said that one sentence can best summarize: Amazon Will affect Hollywood: “When we win the Ballon d’Or, it will help us sell more shoes.” He said in 2016, At the Vox Code conference, But this is still true.Not like Netflix, Streaming media is not Amazon’s core business. Prestige TV and movies are just another product that allows customers to regain Prime membership, which in turn enables them to buy more through Amazon. This is a very old-school business strategy: always get them back for more.

Well, maybe it’s no wonder Amazon is MGM. This is a traditional Hollywood studio with approximately 17,000 TV shows and 4,000 movies-including Robocop And the James Bond movie-in its vault. transaction, Announced in May, Has not yet closed, and has been reviewed by the Federal Trade Commission. But if it passes, it will give Amazon access to all of this content, as well as a studio infrastructure to produce more content, which the company can then share and monetize as needed. This is also an unlucky return, such as Comcast’s acquisition of NBCUniversal or the merger of Time Warner and AOL (remember?).Or AT&T’s recent unfortunate acquisition of Time Warner, most of which were eventually split into Warner Bros. Discovery. But Amazon is not a telecom, it is building a Broader portfolio Almost better than any other company before it. “I think they did what AT&T did,” said Sarah Henschel, streaming analyst at Omdia, “just better and broader.”

Most importantly, the acquisition of MGM can give Amazon the greatest advantage. Streaming wars. Analyst prediction The user growth of streaming services in 2021 will not be the same as last year’s peak Coronavirus disease Locked, so now the name of the game is reserved. Netflix has more than 200 million users; Disney+, about 100 million.Amazon Claim In the past year, more than 175 million of its 200 million Prime members have streamed some content from its video service, but it is difficult to say whether these users will subscribe to Prime Video as an independent service. Streaming media accounts for 26% of all TV time in the United States, according to Analysis firm Nielsen; Netflix alone accounted for 6%, three times that of Amazon Prime. But in the end, this gap may not matter because the content is just a reward for those who want two days to ship. Amazon can continue to invest all the money it earns from shoes into acquisitions such as Amazon Studios and MGM, and still maintain its leading position. Just like Apple, this is a hardware business that happens to have streaming media services, and its core business supports its creative business. This is important, especially now that new streaming media like Paramount+ and Peacock appear, requiring viewers to pay money and eyeballs.

“We are now in a new era of television and video consumption,” said Gartner analyst Eric Sch​​hmitt. “80 years ago, 75 years ago, we had NBC, CBS, and ABC. Now we have Netflix, YouTube and…Amazon? It can be contested, why don’t you make a game for it?”

For Amazon, a large part of this is MGM transactions. Netflix has spent billions of dollars to fill its funding reserves for original movies and TV. Thanks to its parent company WarnerMedia, HBO Max has obtained a huge catalog, home to Warner Bros., HBO, Adult Swim and many other mature content machines. Disney+ is the same; so is Hulu. Amazon Studios produced some good things-Bezos is not joking about the Golden Globes-but the service has never had a large number of products.instead Jianyi, Amazon went out to buy, similar to how it pushed live Sporty Earlier this year-its competitors rarely provide such things.

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