We can be certain the team at Amazon Publishing and Audible will be salivating at the prospect of all that MGM IP about to become part of the Amazon entertainment machine.

Prime, profit and prestige are among the headline assessments of Amazon’s buyout of Hollywood film studio complex MGM, and of course that’s part of the picture, but the real story, in fact relayed by Amazon but mostly dismissed as a press release aside, lies in the IP “treasure trove” that comes as part of the $8.45 billion acquisition.

The deal is not done until the regulators approve, but said approval seems a given in the circumstances. The film industry is not a sector Amazon has previously been noted for dominating, so the final okay should be swift and without controversy. But not everyone is appreciative.

CNBC is among those unimpressed by the move.

XXXIt finally happened. After years of waiting, a large technology company finally acquired a significant legacy media company. Amazon has purchased legendary MGM Studios for $8.45 billion.

So why does it feel so underwhelming?

Because, argues CNBC,

Amazon needs more content for Prime Video to stay relevant against Netflix, Disney+, Hulu, HBO Max and the many other streaming services competing for eyeballs … The primary rationale behind buying MGM is getting more consumers to pay for Prime.

CNBC has a point, of course, but we should bear in mind almost no-one subscribes to Prime just for the video content. Prime Video is part of a much bigger consumer package, making direct comparisons with Netflix and Disney+ hazy, to say the least. Netflix boasts some 200 million subscribers, while Disney+ is already at over 100 million. Prime’s 175 million is an impressive number, but without the added Amazon benefits, would Prime have anywhere near as many?

Prestige and profit are of course givens as factors that make the MGM deal so attractive to Amazon, but it’s the IP treasure trove that should most excite observers, and especially those in the publishing industry.

MGM brings to the table a library of 4,000 film titles and 17,000 hours of TV programmes, and by library we are talking IP rights, not just the option to re-run old films and TV on Prime.

In the words of Mike Hopkins, the senior VP, Prime Video and Amazon Studios:

The real financial value behind this deal is the treasure trove of intellectual property in the deep catalogue that we plan to reimagine and develop together with MGM’s talented team.

We can be certain the team at Amazon Publishing and Audible will be salivating at the prospect of all that MGM IP about to become part of the Amazon entertainment machine.

And of course the future of cinema releases comes under renewed pressure with a major streaming service now owning all MGM’s future film content.