[HN Gopher] Amazon Nears Deal to Buy Hollywood Studio MGM
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       Amazon Nears Deal to Buy Hollywood Studio MGM
        
       Author : lunchbreak
       Score  : 72 points
       Date   : 2021-05-24 18:53 UTC (4 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | RcouF1uZ4gsC wrote:
       | > Amazon.com Inc. is nearing a deal to buy the Hollywood studio
       | MGM Holdings for almost $9 billion including debt, said people
       | familiar with the matter, a pact that would turn a film operation
       | founded in the silent era into a streaming asset for the
       | e-commerce giant.
       | 
       | What surprises me is that at $9 Billion, why hasn't it been
       | acquired by now?
       | 
       | Right now, video streaming is pretty much a solved problem, and
       | it is content that differentiates one service from another.
       | 
       | If you are an Internet giant, $9 Billion seems like a pocket
       | change to get access to a huge catalog.
        
         | dageshi wrote:
         | The biggest IP is Bond and the Broccoli family own 50% of it
         | and have creative control over the movies (and whether or not
         | it can be a tv series).
         | 
         | I imagine that's the complication, you buy MGM but don't really
         | have full control over the crown jewel so to speak.
        
         | andrewstuart wrote:
         | Good point - you'd think Netflix would have been buying this
         | stuff up.
        
           | agustif wrote:
           | how many originals can they pump out at 9B though?
        
             | Kye wrote:
             | Owning proven stuff is probably a more reliable investment
             | than hoping one of your darts in the wall develops the
             | cultural cachet of any of these:
             | https://en.wikipedia.org/wiki/Category:Metro-Goldwyn-
             | Mayer_f...
             | 
             | How many Netflix productions come even close for all the
             | tens of billions they've poured into it? Reliable names
             | mean customer retention.
        
               | agogdog wrote:
               | Honestly that doesn't seem all that great for $9bn.
        
               | jonny_eh wrote:
               | As attractive as catalog content can seem, it's not the
               | reason why new customers join, and stay with, a streaming
               | service. New content is King.
        
               | echelon wrote:
               | Tell that to the owners of The Office.
               | 
               | Peacock making anything new and relevant?
        
       | WheelsAtLarge wrote:
       | Amazon tends to beat the creative parts out of the companies they
       | buy. I bet it's related to the financial efficiencies they apply
       | to them. Creativity is expensive without any guaranteed return.
       | 
       | Most of the new prime video content, that I've seen, seems to
       | have a very safe tone to it. Yes, it's new but it's safe. No one
       | will be surprised or insulted by it. It starts to get boring very
       | quickly.
       | 
       | As new owners, I hope they don't have such a hard hand that they
       | ruin the brand.
        
         | yocheckitdawg wrote:
         | I disagree with this. The search for "safe" is by no means an
         | Amazon problem exclusively and in many ways they do it much
         | less than most.
        
         | Judgmentality wrote:
         | > Most of the new prime video content, that I've seen, seems to
         | have a very safe tone to it. Yes, it's new but it's safe. No
         | one will be surprised or insulted by it. It starts to get
         | boring very quickly.
         | 
         | Overall I agree with your point and I'm extremely confident
         | Amazon buying MGM will completely and utterly fuck over any
         | creative potential that company has (similar to what's
         | happening with AT&T and HBO), but - if you're looking for
         | something good to watch on Prime, take a look at Invincible. I
         | was actually about to give up on it and then I got to the end
         | of the first episode and I binged the rest of the show in less
         | than a day.
         | 
         | It's the first time in years I've looked forward to the next
         | season of a show that isn't a comedy.
        
           | yocheckitdawg wrote:
           | If you like Invincible, you should The Boys a try. It is
           | fantastic, great cast, great cinematography, and great source
           | material which is adapted in such a way that it is honestly
           | better than the original comics it is based on.
        
         | subsubzero wrote:
         | Agree, I think the same thing happened when Disney acquired Fox
         | film studios. Disney is notorious for low pay and alot of the
         | fox execs/creatives were extremely worried after the
         | acquisition, same thing going on with with Amazon/MGM.
         | 
         | I know amazon paid a fortune for Tolkien's Silmarillion TV
         | rights and we haven't seen a single thing about that situation.
         | My big worry is amazon screws around with the Bond franchise
         | and ruins it, it seems to be doing extremely well with top
         | directors and large blockbuster returns.
        
         | sparrc wrote:
         | Fleabag and Marvelous Mrs Maisel didn't seem very safe to me at
         | all
        
       | crmrc114 wrote:
       | I just want Jeff bezos to save Stargate like he saved the
       | expanse. I can only hope that Amazon will protect The Stargate
       | franchise from coming to the same fate as Star wars and Star
       | trek.
        
         | space_ghost wrote:
         | The Expanse was cancelled and then saved by Amazon within a
         | year, Stargate has essentially been a dead property for 10
         | years.
        
           | schraeds wrote:
           | Stargate Origins came out in 2018
        
           | withinrafael wrote:
           | Stargate is actually on the brink of returning. And that's
           | super exciting. Amazon may give it that extra disposable
           | money push needed.
           | 
           | Some newer developments you may have missed:
           | 
           | * Stargate Origins aired in 2018 [1]
           | 
           | * Brad Wright/Joseph Mallozzi are actively working to get a
           | new project off the ground [2] and are looking to tap
           | original cast members (to bootstrap)
           | 
           | * A new Stargate 4X strategy game was just announced [3]
           | 
           | ---
           | 
           | [1] https://en.wikipedia.org/wiki/Stargate_Origins
           | 
           | [2] https://www.gateworld.net/news/2021/05/stargate-
           | timekeepers-...
           | 
           | [3] https://www.gateworld.net/news/2021/05/stargate-
           | timekeepers-...
        
           | dogma1138 wrote:
           | There is a difference between saving a show and saving a
           | franchise.
           | 
           | The Star Trek movies saved the franchise which lead to TNG,
           | DS9 and Voyager, they didn't save the original series tho.
           | 
           | I only hope is that they won't turn Stargate into Discovery
           | like show.
        
             | fareesh wrote:
             | Chevron 7 locked
             | 
             | "waaaaaaaaaa"
        
               | saghm wrote:
               | If they do make a new series, I think I care more about
               | Walter getting a cameo than literally anyone else from
               | the original show
        
         | slakrems wrote:
         | They will probably ruin it with feminism just like the rest of
         | them.
        
       | MattGrommes wrote:
       | What does Amazon get if they buy a Hollywood studio, besides the
       | content library? Is MGM just a holder of copyright for various
       | popular franchises or does the company actually make things?
        
         | mathattack wrote:
         | Strategic power against other content creators. They need some
         | can't miss content similar to HBO/Disney/Netflix.
        
         | dogma1138 wrote:
         | You've just answered your own question. A huge catalog of
         | classics as well as franchises that can be developed into new
         | shows and movies.
         | 
         | The Bond franchise alone probably is worth half of what this
         | deal is gonna cost.
        
           | slg wrote:
           | >The Bond franchise alone probably is worth half of what this
           | deal is gonna cost.
           | 
           | Probably not. MGM doesn't "own" Bond in the same way that
           | Disney owns Star Wars. There are complicating factors to the
           | Bond movies that reduce the brand's value to MGM and any new
           | prospective owner.
        
             | johannes1234321 wrote:
             | Right, Bond is controlled by the Broccoli family (Eon
             | Productions)
        
       | Kye wrote:
       | Previous discussion from when it was reportedly rather than near:
       | "Amazon is reportedly negotiating to acquire MGM for about $9B"
       | https://news.ycombinator.com/item?id=27194167
        
       | Workaccount2 wrote:
       | So when are we going to break up Amazon?
        
         | ashneo76 wrote:
         | This purchase should be illegal yesterday
        
           | reddog wrote:
           | Yes. The classroom example of a vertically integrated
           | monopoly has always been the big movie studio systems in the
           | 40s. They not only made the movies but also distributed them
           | and then owned the theaters they were shown in. This monopoly
           | was broken up in 1948. It resulted in better films and paved
           | the way for television.
           | 
           | Amazon will make the movies, host them on AWS, stream them to
           | their Firesticks, shows them through Amazon Prime on glowing
           | rectangles bought in their store and monetizes it all with
           | their ad service. How is that not a vertical monopoly?
        
           | echelon wrote:
           | Monopolists are going to downvote you, but they're wrong.
           | 
           | These megacorps shouldn't be allowed to enter fifteen
           | different industries and kill off the incumbents. This is
           | absurd.
           | 
           | Amazon is internet services infra, shopping, logistics,
           | fulfillment, consumer hardware, networking, a payments stack,
           | publisher, grocery store, and now a fucking entertainment
           | company.
           | 
           | They track us, turn us into non-owner subscribers, and
           | prevent us from building companies that can compete with
           | their scale. We're eternally subservient. It's not healthy
           | for innovation!
           | 
           | Break up Apple.
           | 
           | Break up Amazon.
           | 
           | Break up Google.
        
             | walshemj wrote:
             | But all those rich news paper /media moguls get a pass then
        
             | ipsum2 wrote:
             | > Amazon is internet services infra, shopping, logistics,
             | fulfillment, consumer hardware, networking, a payments
             | stack, publisher, grocery store, and now a fucking
             | entertainment company.
             | 
             | How many of these do they have a monopoly on? Keep in mind,
             | the definition of monopoly is: "the exclusive possession or
             | control of the supply of or trade in a commodity or
             | service."
        
               | echelon wrote:
               | They can enter new industries well below market cost and
               | destroy all of the existing businesses. They then soak up
               | everything. In the end, everything becomes Amazon.
               | 
               | They did it to open source, bookstores, retail.
               | 
               | Maybe you don't see the end goal, where every restaurant
               | is Amazon and you rent your home from Jeff Bezos?
               | 
               | Maybe you're not worried and you trust these people?
               | 
               | Maybe you don't want to compete and you just want to be
               | an employee?
               | 
               | I don't know. But this is wrong. You can't compete with
               | this, you're forced to work with it. It decreases degrees
               | of freedom and angle of attack for everyone else.
               | 
               | From Amazon's perspective, their moat becomes an ocean.
               | Hope you can swim.
        
             | kuang_eleven wrote:
             | They are the dominant player in only a few of those, and
             | even in those dominant markets, they are far from a
             | monopoly.
             | 
             | Now, if they use a dominant position in one industry to
             | gain advantage in another, that is a different story, but
             | also a harder thing to show.
        
             | subsubzero wrote:
             | Competition is great(for innovation, pay, creativity)
             | anything that interferes with competition, is a bad net for
             | society and good for a very small number of incumbent
             | players.
        
               | echelon wrote:
               | Except that the biggest company buying up other players
               | is _highly anticompetitive_?
        
               | diab0lic wrote:
               | I don't think subsubzero was disagreeing with you. Their
               | comment reads like it is supporting you.
        
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