Amazon looks to hit up Sony and Paramount for movies
The Streaming Video On Demand (SVOD) market is worth around $20 billion today, and it’s projected to hit nearly $24 billion by 2022. Ecommerce titan Amazon is one of the major players in the space, and as it uses its Video, Music, and Twitch services to become Prime members’ entertainment platform of choice, the pressure is on to stay that way. That means Amazon has to compete with companies like Netflix and Hulu for great content – and where better to look than established film studios?
Amazon’s share price has risen by 71% so far this year
Source: Yahoo Finance
According to people close to the matter, Amazon has been in talks with “at least” two major film studios in an effort to get more films onto its platform. Ways in which the company might get that done include co-financing movies in exchange for online rights. While it’s not exactly clear what those rights would entail yet, there are a number of ways in which Amazon could contribute cash, including development funds and money for film production.
The people in question asked to remain anonymous, as discussions are at an early stage. However, they did confirm that Amazon had met with Sony Corp.’s studio division and Viacom Inc.’s Paramount Pictures.
According to Bloomberg Intelligence, Amazon is looking to spend about $5 billion on video programming this year. The intention behind that spending is to close the gap with market leader Netflix, which also ploughs money into content.
The deal, if it ever comes to fruition could be a win for both sides. Amazon gets access to top quality content from established studios that still churn out multiple blockbusters per year. And the studios it ends up working with… well, on top of the financial incentives of working with Amazon, they get to stay relevant in an SVOD-dominated world.
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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