While the potential to some day produce new "James Bond" and "Rocky" movies out of Amazon Studios provided a sexy news angle to Amazon's just-closed $8.45 billion purchase of MGM, it's the infusion of an MGM library featuring more than 4,000 film titles and 17,000 TV series episodes that will likely have more immediate impact on Amazon's video business.
Undoubtedly, Amazon will try to monetize many of these MGM library titles -- which include films Silence of the Lambs, Thelma & Louise, Midnight Cowboy, Fiddler on the Roof, Dances with Wolves and Raging Bull -- through advertising via its growing IMDb TV platform. And that will further add scrutiny to an merchandising strategy that is somewhat unique to Amazon -- regardless as to whether a title is part of the Amazon Prime Video subscription smorgasbord, or part of the IMDb TV AVOD portfolio, or a "transactional" recent release movie title available for rent, Amazon bundles them all together under one "Prime Video" app interface.
Amazon indicates already paid (Prime Video subscription), ad-supported and rental content with little labels that go in the upper left hand corner of thumbnails on the Prime Video interface.
On Thursday, tech blog Protocol predicted that Amazon will "double down" on ad sales, with MGM content on IMDb TV being a primary focus.
Amazon, Protocol said, "seems perfectly content using IMDb TV as a vehicle to stream ads to Prime subscribers as well, setting it apart from the way Disney and others approach advertising in a subscription video context. Instead of providing a cheaper tier to customers willing to watch ads, Amazon simply presents IMDb TV as a free add-on."
Also read: Amazon Just Paid a 40% Premium to Buy MGM — What’s It Really Getting?
Speaking at a Deutsche Bank investor event earlier this week, Paramount Global CFO Naveen Chopra didn't call out Amazon by name. But he seemed to come pretty close to implicating the tech giant when he remarked, “If you want to have both ad-supported and subscription, we think it is important to keep those things separate.
"It’s very confusing for customers to have all that in one service and not really understand, ‘Is this free? Is this pay? What content do I get and where?’ We have the ability with Pluto to really shout from the rooftops that Pluto is free. And then we have the ability to position Paramount+ as the destination for high-quality content," Chopra added. ■
