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Amazon acquires MGM for $8.5B

reuters.com

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Re: Amazon acquires MGM for $8.5B

#501
post #41

Earlier quoted context omitted.

Would you also establish compulsory licensing so that studios and distributors can’t have exclusive content?

Compulsory licensing would be fantastic. It already exists for e.g. radio

A studio recording is what? 100k investment? A season of TV is at least 10M--and Amazon and Netflix are spending 200M on some.

I think it would be very challenging to set compulsory licensing rates for TV and Movies.

Re: Amazon acquires MGM for $8.5B

#502
post #316

So what we're seeing is a repeat of the film industry from 1930's-1950's. You want to see a Paramount movie, you must go to a Paramount theater. Today you want to watch an Apple show you must go to Apple's VOD. We could really use laws that force, once again, some sort of separation between production and distribution. Better stuff gets made in this kind of ecosystem.

I wonder if we’ll see some kind of cable box equivalent where private companies will go ahead and bundle a subset of all the content on the streaming service into a package to sell you. Possibly subsidized with ads…

This is kind of what Roku does, yeah? Each Roku device comes pre-loded with a suite of streaming services installed (but you still have to subscribe to each one...) and the remote even has dedicated buttons for whatever streaming services are paying Roku the most at the moment.

Re: Amazon acquires MGM for $8.5B

#503

The meaninglessness of $8.45b relative to amazon's scale is mind boggling. It represents 0.5% of their market cap, 20% of their cash-on-hand, nevermind their borrowing capacity @ near 0%. If a problem is worth the Jeff/Andy's personal attention, it's worth spending $8bn on. I'm a broken record but, current equity prices and financial climate generally makes massive consolidation very likely. Antitrust, or fear of is…

Worth noting that based on AAPL's latest 10-Q, the vast majority of their cash is invested in corporate bonds, which have a nominal annualized return of ~6%. I'm sure the financial value of any acquisition is pitted against this alternative.

Re: Amazon acquires MGM for $8.5B

#504

Earlier quoted context omitted.

> Piracy is competition to bad content behavior. No it isn't. It's a workaround. This is an 8 billion dollar deal, there would have to be an impossible amount of piracy for it to count as "competition." This is precisely the reason why government regulation here is correct, as consumers, we don't have a lever long enough to have any real impact on the core problem. And we're just one side of the deal. These types of…

The solution is to break up big tech. Amazon shouldn't be ten companies in one. Google shouldn't be able to set web and mobile standards, then reap ad monies by forcing everyone to accept their anticompetitive changes. Apple shouldn't be the sole guardian of iPlatform. You can't have a protection racket on 50% of all commerce (phones >> gaming consoles) and enforce what gets put on the device. These companies don't h…

Conglomerates have never been a good idea (imho), because they have this ugly tendency of cornering one market at a time using profits from all other divisions.

Re: Amazon acquires MGM for $8.5B

#505

So what we're seeing is a repeat of the film industry from 1930's-1950's. You want to see a Paramount movie, you must go to a Paramount theater. Today you want to watch an Apple show you must go to Apple's VOD. We could really use laws that force, once again, some sort of separation between production and distribution. Better stuff gets made in this kind of ecosystem.

In [1] Arthur De Vany showed rather convincingly that the split between distribution and production for movie production made things worse for the consumers. The problem is that the profit of the whole industry is dominated by very few titles and that split lead to a few non-trivial consequences like lack of diversity in Hollywood.

[1] - https://www.amazon.co.uk/gp/aw/d/0415312612?psc=1&ref=ppx_po...

EDIT: one of the Amazon reviews gave a very good summary of the above point:

One of the more interesting conclusions is that the old movie studio system understood implicitly that this business was unpredictable. Until the antitrust laws were used to break them up, the studios contracted stars, script writers, directors, distribution networks and movie theaters in order to own the entire stream of revenues all their movies would generate.

This way the old studio bosses could diversify their risk in what was essentially a portfolio of movies. They knew that they could not predict which of their films would be a hit so they insisted on owning them all and on managing costs so that the hits would pay for the turkeys, while leaving shareholders with a healthy return.

Re: Amazon acquires MGM for $8.5B

#506

Earlier quoted context omitted.

The solution is to break up big tech. Amazon shouldn't be ten companies in one. Google shouldn't be able to set web and mobile standards, then reap ad monies by forcing everyone to accept their anticompetitive changes. Apple shouldn't be the sole guardian of iPlatform. You can't have a protection racket on 50% of all commerce (phones >> gaming consoles) and enforce what gets put on the device. These companies don't h…

> Microsoft is literally the only tech giant behaving correctly, and it's probably because they got slapped with antitrust in the 2000s. Ask Slack if they agree. Microsoft used the dominance of Office to take over that market by bundling Teams.

That’s just good business

Re: Amazon acquires MGM for $8.5B

#508
post #325

Earlier quoted context omitted.

> Piracy is competition to bad content behavior I really wish we had the bandwidth we have now, back in the Napster-era. Napster, and others forced, persuaded and cajoled the music industry to consolidate, whether they liked it or not, on Spotify, and iTunes. If we'd had easy free sharing of movies, it's not hard to envisage something similar to what we see now in the music industry forced on the movie companies. Now…

But that's the thing. You don't have to pay for cable anymore. And if you want to watch a show, you can subscribe for a month, get your fill, and then unsubscribe. You couldn't do that before.

You can't do the pop in/pop out thing anymore, because they've (Amazon) started posting only one episode per week instead of a full season at once.

Re: Amazon acquires MGM for $8.5B

#509
post #416

Earlier quoted context omitted.

Awe yes diversity. Can't go a day with out reading this ever lasting buzzword. Is that really your determining factor while deciding to watch a movie? It isn't mine. I watch a movie because its a good movie, I don't go searching for diversity, I like watching a movie because of its entertainment value. You should try it.

If you're a minority, it's nice having a relatable positive role model in the media you consume.

Or, at a minimum, to not have a negative role model.

Re: Amazon acquires MGM for $8.5B

#510
post #336

Earlier quoted context omitted.

We have not yet approached the pre-streaming willingness to pay (WTP). People used to pay $150 to $200 plus onDemand for the whole package with their cable provider. Today you can have YouTubeTV, HBO, Netflix, Prime, AppleTV+, Disney+, and Spotify for less than that. So perhaps the average will hover around $100 with many paying closer to $200 a month. We are creeping back up to those numbers because people will pay.

I have a hard time believing that that was the average monthly cost of a cable subscription. Mine was never more than $30-40 when I needed cable for the internet.

When I had cable the $30 plan was the "just the stuff you can get OTA plus some shopping channels" plan. If you wanted actual cable channels you had the choice of:

1. "Basic" bundle, $60 + $20 in fees + $8-15 per set to rent the box. Got you ESPN, Food Network, SciFi, Cartoon Network, USA

2. "Complete" bundle, $100 + $20 in fees + $8-15 per set to rent the box. Got you BBC, a bunch of foreign language channels, Starz, and a few more.

You could also add HBO to either plan for $15 a month. I think they may have had a few other premium channel options as well, but I never paid that close of attention.

We cut the cable because the price had crept up from about $50/month total to almost $100/month over the course of a few years. It was just unsustainable. Now we pay about $40/month for streaming services, and the streaming services don't have ads.

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