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Tara Lachapelle

Is Amazon's MGM Deal a Game Changer?

Rivals fear the Amazon effect, but the tech giant's purchase of Whole Foods is a reminder that not every deal it does is an industry crusher.

The substantial overlap in Prime members and Netflix Inc. subscribers suggests Amazon isn’t cutting it for TV fans … yet.

The substantial overlap in Prime members and Netflix Inc. subscribers suggests Amazon isn’t cutting it for TV fans … yet.

Photographer: iStock/Getty Images

Is MGM just another Whole Foods? Amazon.com Inc.’s biggest acquisition is a lesson that the technology giant doesn’t always live up to the terror — or hysteria — that its seemingly limitless ambitions tend to inspire.

Amazon is reportedly close to announcing a $9 billion takeover of MGM Holdings, the parent of the movie studio behind the James Bond franchise and the television studio that produced the “Handmaid’s Tale” series for Hulu. This will add a lot of well-known titles to Amazon’s Prime Video catalog and perhaps increase the app’s output of new content. That, in turn, may give Prime shoppers who pay $119 a year for perks such as fast free shipping more of a reason to indulge in its streaming service. The substantial overlap in Prime members and Netflix Inc. subscribers suggests Amazon isn’t cutting it for TV fans.