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Sony's MGM deal hedges all bets: analysts say acquisition is an advantage on DVD and any future format.(News Analysis)(acquisition of Metro-Goldwyn-Mayer Inc. by Sony Corp.)
- Article from:
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Video Store
- Article date:
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September 19, 2004
- Author:
- Arnold, Thomas K.
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Copyright informationCOPYRIGHT 2004 Advanstar Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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No sooner had the ink dried on Sony Corp.'s "agreement in principle" to buy MGM for nearly $5 billion than the industry was abuzz over the motive.
Generally, analysts concur Sony is both gambling on DVD's staying power and betting against it should a future technology--be it packaged or electronic--take hold. Sony is buying MGM chiefly for its rich catalog of classic movies and plans to exploit that catalog however it can.
"It's been shown, over and over through the years, that content has value, whatever the delivery vehicle," said veteran industry analyst Tom Adams, president of Adams Media Research. "And, in fact, that content increases in value as more delivery ...