Amazon is reportedly in pursuit of developing the content offerings of its Amazon Prime Video streaming service.
Exploratory discussions between the e-commerce giant and leading Hollywood film studios, like Sony Pictures Studios and Paramount Pictures Corporation, are said to have taken place.
No actual deals have been completed yet as the conferences are still in their early stages. However, reports mention that Amazon is interested in using the facilities of these studios to make original movies for Amazon Prime Video.
In addition, reports say that Amazon is trying to mimic Netflix. The streaming giant employed Hollywood-based Paramount Studios to create the movie, “The Cloverfield Paradox,” which was directly delivered in the mainstream streaming provider.
Paramount and Sony both possess considerable backlogs in terms of intellectual properties in their auspices. Thus, it is natural for Amazon to pursue them.
The two studios were the only ones particularly mentioned by reports made by news outlets like Variety. However, it is likely that the retail company is also considering making agreements with other film-making establishments.
The meetings between the entertainment companies happened in light of several key events in the media and entertainment sectors. For one, Amazon is reconstructing its studio under the supervision of Jennifer Salke.
She has emphasized that Amazon Prime Video will not engage in the volume venture and is an independent business, but it will serve as a customer retention mechanism.
In addition, Paramount and Sony officials are weighing their choices while traditional media competitors like AT&T-Time Warner and Disney-Fox are strengthened through consolidation. Finally, major streaming services like Netflix are riding high.
According to insiders who are familiar with the matter, Amazon is discovering new methods to offer more movies on Amazon Prime Video. The talks with the Hollywood studio executives could comprise co-financing films in exchange for particular online licenses.
Moreover, the options also included financing film-making and development funds. Gaining more films from the leading Hollywood movie production facilities would propel Amazon to entice more subscribers for Amazon Prime Video.
The latter is following Netflix when it comes to popularity. Based on Bloomberg Intelligence, this year, Amazon will shell out over $5 billion on video programming.