Amazon has announced that it agreed to acquire the movie and television studio MGM. This is the e-commerce giant's second largest acquisition after its $13.7 billion purchase of Whole Foods in 2017. WSJ wrote, "Some industry analysts and observers see the expected MGM purchase, one of the tech industry’s biggest buys in Hollywood, as a recognition inside Amazon that it can’t create enough content fast enough to win subscribers on its own and compete with streaming entertainment rivals Disney+ and Netflix Inc.—an assertion that Amazon insiders reject."
Looking at the graph above and reading the WSJ articles, I started to wonder the following:
1) How would Amazon integrate its Prime Video service into other services/platforms such as Amazon Marketplace, AWS, and Amazon Advertising. What kinds of synergy could be created?
2) How would Netflix maintain its dominance in the streaming industry?
3) Once this industry becomes saturated and there are no more new subscribers added to any service, what kinds of innovative business opportunities would emerge? Also, how would the streaming wars affect content creators in the long?
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