Amazon is definitely gearing up in its competition with Netflix & Disney in the video entertainment arena by acquiring MGM Studios for $8.45B. However, I think what is most interesting is the differences in their business approach.
Video entertainment is engaging
While Netflix and Disney’s core businesses are video entertainment, Amazon’s core business is e-commerce. As such, video entertainment forms part of Amazon’s customer engagement strategy.
Gaming competes with Video as engaging entertainment
Even more interesting, is that this usage of entertainment as customer engagement is gradually transiting to other areas as well, especially instant games.
I believe in the near future, more apps (especially e-commerce & super apps) will want to engage their users with games and prizes on their platforms.
Truly an exciting space to watch!