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Amazon to buy MGM for $8 billion in major boost to Prime Video library

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Illustration of the MGM logo with a picture of Jeff Bezos instead of a lion, James Bond actor Daniel Craig, and a man wearing a jacket with an Amazon logo.

Amazon today announced a definitive agreement to buy MGM (Metro-Goldwyn-Mayer) for $8.45 billion. Amazon said that MGM’s filmmaking prowess “complements the work of Amazon Studios, which has primarily focused on producing TV show programming.”

Buying MGM would let Amazon add plenty of movies to its Prime Video streaming service. It’s not clear whether MGM’s theatrical-release strategy would change. “Amazon will help preserve MGM’s heritage and catalog of films and provide customers with greater access to these existing works. Through this acquisition, Amazon would empower MGM to continue to do what they do best: great storytelling,” the merger announcement said.

Amazon said the purchase “is subject to regulatory approvals and other customary closing conditions” but did not provide an estimated closing date. The acquisition announcement came about a week after news reports revealed the negotiations.

“The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Mike Hopkins, senior VP of Prime Video and Amazon Studios, said in the press release. “It’s very exciting and provides so many opportunities for high-quality storytelling.”

The pending purchase “has an equity value of $6.5 billion, people familiar with the matter said,” according to The Wall Street Journal. “Including debt, the value of the deal is $8.45 billion, Amazon said.” Buying MGM would mark Amazon’s second largest acquisition after its $13.7 billion purchase of Whole Foods in 2017.

Hopkins noted that “MGM has a vast catalog with more than 4,000 films—12 Angry Men, Basic Instinct, Creed, James Bond, Legally Blonde, Moonstruck, Poltergeist, Raging Bull, Robocop, Rocky, Silence of the Lambs, Stargate, Thelma & Louise, Tomb Raider, The Magnificent Seven, The Pink Panther, The Thomas Crown Affair, and many other icons—as well as 17,000 TV shows—including Fargo, The Handmaid’s Tale, and Vikings—that have collectively won more than 180 Academy Awards and 100 Emmys.”

The Handmaid’s Tale has been a huge hit for Hulu, a major rival to Prime Video. The show’s season 4 premiere was “the most watched Hulu Original ever, series or film,” with about 1 million viewers, Deadline reported this month.

Amazon won’t have total control over Bond

Amazon won’t have creative control over the Bond franchise, The New York Times noted. “Amazon will own only 50 percent of the spy franchise,” the Times wrote. “The balance is held by Barbara Broccoli and her brother, Michael G. Wilson. The siblings also have ironclad creative control, deciding when to make a new Bond film, who should play the title role, and whether television spinoffs get made. (They have blocked such efforts in the past.)”

As Variety wrote last week, “Insiders believe that Broccoli and Wilson would likely nix any plans to debut Bond films on Amazon’s streaming service Prime Video and would insist on a theatrical release, as is their contractual right… The producers have also been resistant to have Bond pop up in spinoffs or television shows, the kinds of ancillary properties that could prove highly lucrative. Moreover, the films have been heavily licensed to cable networks and streaming platforms, which could complicate matters.”

The Bond film Skyfall already comes included with a Prime Video subscription. All other films in the series require a separate rental or purchase on Prime Video, usually $4 to rent and $14 or $15 to buy. Amazon would presumably choose to make many or most of MGM’s films available in the basic Prime Video subscription once it owns the company, but it could continue charging rental and purchase fees for some films to make more money.

Amazon faces antitrust scrutiny

Amazon’s attempt to buy MGM could get some pushback from US regulators, as the company has faced plenty of antitrust scrutiny—though mostly for its online retail sales business. In addition to a congressional report that found that “Amazon has monopoly power over most third-party sellers and many of its suppliers,” antitrust scholar and noted Amazon critic Lina Khan is slated to fill an empty slot on the Federal Trade Commission, pending Senate approval. The District of Columbia sued Amazon yesterday, alleging that the online retail giant violated antitrust law with most-favored nation policies that prevent sellers from offering products at lower prices on other websites.

MGM would help Prime Video compete more effectively against the giant Netflix. MGM’s boost to Prime Video could also help Amazon’s retail sales indirectly because of how Amazon bundles its major services into a single $120-per-year Prime subscription that includes Prime Video, Amazon Music, Prime Reading, faster shipping on retail purchases, and other services.

Several major film studios are already owned by either a tech or telecom company. Comcast owns Universal Pictures through its NBCUniversal subsidiary; AT&T owns Warner Bros. and New Line Cinema through its WarnerMedia division; and Sony owns Columbia Pictures and TriStar Pictures. AT&T bought Time Warner for $108 billion in 2018 and last week announced a deal to spin out the unit into a separate company that would be combined with Discovery, Inc. AT&T said the spinout will take a year to complete. Walt Disney Studios is the other major film studio.

MGM Board Chairman Kevin Ulrich said that “the opportunity to align MGM’s storied history with Amazon is an inspiring combination.” Ulrich is the CEO of hedge fund Anchorage Capital, the top shareholder in the holding company that owns MGM, reportedly with a 35 percent stake.

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Lucidworks: Chatbots and recommendations boost online brand loyalty

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Who is loyal

Elevate your enterprise data technology and strategy at Transform 2021.


Pandemic-related shutdowns led consumers to divert the bulk of their shopping to online — and many of those shoppers are now hesitant about returning to stores as businesses begin to open back up. A recent survey of 800 consumers conducted by cloud company Lucidworks found that 59% of shoppers plan to either avoid in-person shopping as much as possible,  or visit in-person stores less often than before the pandemic.

Above: Shoppers across the U.S. and U.K. agree that high-quality products, personalized recommendations, and excellent customer service are the top three reasons they’re brand-loyal.

Image Credit: Lucidworks

As the world stabilizes, shoppers want brands to provide a multi-faceted shopping experience — expanded chatbot capabilities, diverse recommendations, and personalized experiences that take into account personal preferences and history, Lucidworks found in its study. More than half of shoppers in the survey, 55%, said they use a site’s chatbot on every visit. American shoppers use chatbots more than their counterparts in the United Kingdom, at 70%.

The majority of shoppers, 70%, use chatbots for customer service, and 53% said they want a chatbot to help them find specific products or check product compatibility. A little less than half, or 48%, said they use chatbots to find more information about a product, and 42% use chatbots to find policies such as shipping information and how to get refunds.

A quarter of shoppers will leave the website to seek information elsewhere if the chatbot doesn’t give them the answer. Brands that deploy chatbots capable of going beyond basic FAQs and can perform product and content discovery will provide the well-rounded chatbot experience shoppers expect, Lucidworks said.

Respondents also pointed to the importance of content recommendations. The survey found that almost a third of shoppers said they find recommendations for “suggested content” useful, and 61% of shoppers like to do research via reviews on the brand’s website where they’ll be purchasing from. A little over a third — 37% — of shoppers use marketplaces such as Amazon, Google Shopping, and eBay for their research.

Brands should try to offer something for every step in the shopping journey, from research to purchase to support, to keep shoppers on their sites longer. How online shopping will look in coming years is being defined at this very moment as the world reopens. Brands that are able to understand a shopper’s goal in the moment and deliver a connected experience that understands who shoppers are and what they like are well-positioned for the future, Lucidworks said.

Lucidworks used a self-serve survey tool, Pollfish, in late May 2021 to survey 800 consumers over the age of 18—400 in the U.K. and 400 in the U.S.—to understand how shoppers interact with chatbots, product and content recommendations, where they prefer to do research, and plans for future in-store shopping.

Read the full U.S./U.K. Consumer Survey Report from Lucidworks.

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Breakroom teams up with High Fidelity to bring 3D audio to online meetings

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Breakroom teams up with High Fidelity to bring 3D audio to online meetings

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Social meeting space Breakroom has integrated High Fidelity‘s 3D audio into its 3D virtual world for social and business events.

The deal is a convergence of some virtual world pioneers who have made their mark on the development of virtual life. Philip Rosedale is the CEO of High Fidelity, and he also launched Second Life in 2003. And Sine Wave Entertainment, the creator of Breakroom, got its start as a content brand in Second Life before it spun out to create its own virtual meeting spaces for real world events.

Adam Frisby, chief product officer and cofounder of Sine Wave, said in our interview conducted inside Breakroom that the High Fidelity spatial audio will help Breakroom create a triple-A quality experience in a virtual world.

“The real benefit of having 3D audio in a virtual world like this is you can have lots of conversations going on simultaneously,” said Frisby. “3D audio is the only way to replicate the real-world experience in an online environment. You can have a 150-person conference and end up with 10 groups of people talking at the same time. That has helped us with engagement.”

Above: Breakroom lets an event have dozens of simultaneous conversations where people don’t talk over each other, thanks to High Fidelity.

Image Credit: Sine Wave

Most online events get engagement times of 20 or 30 minutes. But Breakroom’s average events, ranging from 600 to 1,000 attendees, have engagement times of an hour and 40 minutes, Frisby said.

Sine Wave’s Breakroom draws heavily on lessons learned in Second Life to create a frictionless, mass market, user-friendly virtual world.

“You can hear everything better with High Fidelity,” said Rosedale, in our interview in Breakroom. “Breakroom combines low-latency server-side video and spatial audio in a way that lets you hold an event like it’s in the real world.”

High Fidelity is a real-time communications company. Its mission is to build technologies that power more human experiences in today’s digital world. The company’s patented spatial audio technology, originally developed for its VR software platform, adds immersive, high-quality voice chat to any application — for groups of any size. You can really tell how close you are to someone in a High Fidelity space when they talk to you, as voices become fainter the farther away they are.

“We are super excited about this general direction and we wound up building the audio subsystem and extracting that first,” Rosedale said. “It works well where there is no possibility of face-to-face meetings.”

breakroom 3

Above: I could hear Philip Rosedale’s voice clearly in this conversation in Breakroom.

Image Credit: Sine Wave

Spatial audio in a 3D virtual world helps encourage spontaneous conversations into a fun, productive setting, in a way that flatscreen video calls and webinars simply can’t match, Frisby said. It’s easy to tell in Breakroom who is speaking to you, and from what direction.

It took me a little while to figure out how to unmute my voice. Rosedale was jumping up and down while we were talking.

“It’s all remote rendered. And that means that we can bring people in on a variety of platforms,” Frisby said. “No matter what your target hardware is, you can actually get in here and still get good high fidelity. It’s a good quality 3D rendering experience here regardless of what device you’re on.”

I asked Rosedale if he could hear me chewing lettuce, which sounded very loud on my headsets. But he said no. It definitely helps if you have good headsets with 3D audio.

Breakroom is being used by organizations like Stanford University, the United Nations, and The Economist. Breakroom runs on any device with a Chrome browser, offering good 3D graphics and audio quality, with no installation required.

Frisby said that Breakroom is also a way for companies to enable remote workers to gather and meet each other in more relaxed environments as if it were an intermediate space between online-only environments and going back to work in offices.

breakroom 4

Above: Breakroom and High Fidelity are enabling conferences with spatial audio.

Image Credit: Sine Wave

Its full suite of communication tools includes voice chat, instant messenger, and in-world email. It has video conferencing, media sharing, and desktop sharing tools. It has a diverse range of fully customizable avatars and scenes. You can get around just by pointing and clicking on the environment.

It also has event management tools to facilitate conversation and agenda flow, branded interactive exhibition stands, and private meeting rooms, available for rent by sponsors. It has environments including dance clubs, beach and mountain retreats, casual games, quiz shows, and live music/comedy shows. It has an integrated shop where brands can upload and sell their content to customers for real cash.

It gives you the ability to seamlessly license and import any item from the Unity Asset Store (Sine Wave is a verified partner of Unity). The iOS and Android version of Breakroom is in closed beta and Breakroom for consoles and the Oculus Quest 2 coming soon. It has LinkedIn and Eventbrite integration, including ticket sales. It also has a self-serve portal for customers to quickly customize and configure their organizations’ Breakroom, as well as sub-licensing agreements which enable Breakroom customers to host and monetize events and experiences to their own customer base.

Frisby said it has been a technical challenge so that people don’t get kicked out of the room, but his team has managed to refine the technology during the pandemic. He thinks conferences are great use cases for the technology because so many people come together simultaneously and push the tech to the limit.

As for High Fidelity, Rosedale believes that the education market will come around, and the whole world will eventually move to better spatial experiences.

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Moderne helps companies automate their code migration and fixes

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https://www.youtube.com/watch?v=uR9EPALJKjI&feature=emb_title

Elevate your enterprise data technology and strategy at Transform 2021.


While every company may well be a software company these days, the software development sphere has evolved greatly over the past decade to get to this stage, with developer operations (DevOps), agile, and cloud-native considerations at the forefront.

Moreover, with APIs and open source software now serving as critical components of most modern software stacks, tracking code changes and vulnerabilities introduced by external developers can be a major challenge. This is something fledgling startup Moderne is setting out to solve with a platform that promises to automatically “fix, upgrade, and secure code” in minutes, including offering support for framework or API migrations and applying CVE (common vulnerabilities and exposures) patches.

The Seattle-based company, which will remain in private beta for the foreseeable future, today announced a $4.7 million seed round of funding to bring its SaaS product to market. The investment was led by True Ventures, with participation from a slew of angel and VC backers, including GitHub CTO Jason Warner; Datadog cofounder and CEO Olivier Pomel; Coverity cofounder Andy Chou; Mango Capital; and Overtime.vc.

Version control

If a third-party API provider or open source framework is updated, with the older version no longer actively supported, companies need to ensure their software remains secure and compliant. “It requires revving dependencies [updating version numbers in configuration files] and changing all the call sites for the APIs that have changed — it’s tedious, repetitive, but hasn’t been automated,” Moderne CEO and cofounder Jonathan Schneider told VentureBeat.

Moderne is built on top of OpenRewrite, an open source automated code refactoring tool for Java that Schneider developed at Netflix several years ago. While developers can already use the built-in refactoring and semantic search features included in integrated development environments (IDEs), if they need to perform a migration or apply a CVE patch, they have to follow multiple manual steps. Moreover, they can only work on a single repository at a time.

“So if an organization has hundreds of microservices — which is not uncommon for even very small organizations, and larger ones have thousands — each repository needs to be loaded into [the] IDE and operated one by one,” Schneider said. “A developer can spend weeks or months doing this across the codebase.”

OpenRewrite, on the other hand, provides “building blocks” — individual search and refactoring operations — that can be composed into an automated sequence called recipes anyone can use. Moderne’s offering complements OpenRewrite and allows companies to apply these recipes in bulk to their codebases.

Above: Moderne screenshot

Enterprises, specifically, can accumulate vast amounts of code. One of Moderne’s early product design partners is a “large financial institution” that incorporates some 250 million lines of Java code — or “one-eighth of all GitHub Java code,” Schneider noted, adding that this is actually on the “low to medium” side for what a typical enterprise might have.

“Some of this code is obsolete (e.g. accrued through historical acquisitions), some is under rapid development (e.g. mobile apps) — but the majority represents super valuable business assets, such as ATM software and branch management software,” Schneider said.

And let’s say a company decides to redeploy developers internally to work on rapid development projects — it still needs to consider the core software components that underpin the business and need to be maintained. Moderne automates the code migration and CVE patching process, freeing developers to work on other mission-critical projects.

When Moderne eventually goes to market, it will adopt an open core business model, with a free plan for the open source community and individual users, while the premium SaaS plan will support larger codebases and teams with additional features for collaboration.

The company said it will use its fresh cash injection to grow a “vibrant open source community for OpenRewrite,” expand its internal engineering team, and bolster its SaaS product ahead of launch.

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