In the News
Backward Vertical Integration: Amazon acquires MGM Studios
31st May 2021
So why have Amazon taken over MGM Studios? This article looks at the motivation behind the vertical backwards integration that has taken place.
Amazon has made a deal to acquire MGM, the home of James Bond and one of the most iconic movie studios in Hollywood, for $8.45 billion.
— CNN International (@cnni) May 29, 2021
The deal gives Amazon an extensive library of film and TV shows that it can use to fill out its Prime Video content. https://t.co/m4w4ADWGLz pic.twitter.com/h0SoD8mVe0
In buying the studios, the pay-TV giant has acquired 4,000 film titles and over 17,000 hours of TV programmes but also gives the streaming service access to the rights to these programmes and the ability to invest in remakes and exploiting long-running series like James Bond.
The only thing that the takeover doesn't give Amazon access to are the 2,000 classic film titles that MGM have already sold to Warner Bros.
- Economics
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- Vertical integration
- Backward vertical integration
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Graham Watson
Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.
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