Amazon in talks to buy MGM as streaming space gets extremely competitive

Amazon is reportedly in talks to buy MGM, the film studio that was a staple of Hollywood’s Golden Age.

A tie-up will give Amazon a big brand to wield as competition in streaming grows fiercely by the day.

MGM’s iconic logo of a roaring lion has played before tons of classic films could be valued at between $7 billion and $10 billion, according to reports.

Reports have circulated for years that Amazon has wanted to buy a big entertainment property to bolster its streaming video service.

In 2018, Bloomberg said it was in the running to buy Landmark Theaters, a specialty cinema chain. Last year, the Daily Mail suggested it could purchase AMC Theaters.

But a studio provides a more obvious and immediate benefit for Amazon than a theater chain, since MGM’s films and TV projects could easily find a home on Prime Video.

Prime Video’s biggest advantage is that it is included in Amazon’s wildly popular Prime program, which offers fast delivery and other benefits for an annual fee.

Prime has more than 200 million paid subscribers, the company revealed during its most recent earnings report, adding that streaming hours on Prime Video are up more than 70% year-over-year.

The company has already put a lot into making Prime Video a bigger selling point for its service. A highly anticipated TV show set in the “The Lord of the Rings” universe, for example, is reportedly costing $465 million for a single season.

The streaming space is getting extremely competitive. Netflix continues to pump billions of dollars into expanding its own library of shows and movies. Disney+ has grown to more than 100 million subscribers in its first year.