Why Have Netflix and Apple Considered Buying MGM?

This year, accusations and criticisms have flooded the entertainment world, particularly surrounding the Academy Awards. Among the most pressing issues is the ongoing debate about the eligibility rules for submitting films to compete for the coveted Best Picture award. This has led to a series of high-profile moves by tech giants like Netflix and Apple, who are now considering taking a stake in MGM, a renowned movie studio. In this article, we'll explore why these two companies are so keen on partnering with MGM, and the implications of these changes.

The Current State of the Academy Awards

The Oscars, as the ultimate recognition in the film industry, have become more complex and stringent in recent years. One of the most controversial changes has been the eligibility rules for films to be considered for the Best Picture category. Specifically, the rules stipulate that a film must be publicly exhibited in a movie theater in Los Angeles County for at least seven days before the Oscar shortlist is announced. This rule has effectively locked out streaming services, which do not typically distribute films through physical venues.

Debate Surrounding the New Eligibility Rules

The new rules mandate that films must play in a theater in Los Angeles County for at least seven days to be eligible for Oscar consideration. This strict requirement leaves streaming services like Netflix and Apple out of the race. The rationale behind this rule, however, has been criticized as flawed. Many believe that the requirement is aimed at ensuring that films reach a wider audience in traditional theatrical settings before being made available on digital platforms.

One of the key examples often cited in this debate is the film Joker. Despite receiving a 69% rating on Rotten Tomatoes, the film managed to gain a nomination for Best Picture. This situation has raised questions about the integrity and fairness of the Oscar selection process. Critics argue that the threshold for recognition has become so low that nearly any film that reaches a decent level of popularity can make it onto the shortlist.

Netflix and Apple's Moves

In response to these changing dynamics, both Netflix and Apple have taken significant steps in recent years. Netflix, in particular, has had to pivot its strategy to remain relevant in the content delivery game. The company has invested heavily in original content, aiming to compete with traditional studios not just in terms of quality but also in visibility. This ambition is reflected in its decision to partner with MGM.

Netflix's Strategic Alliances

One of the most notable instances of Netflix's strategic moves was its release of The Irishman, a critically acclaimed film that was both shown in theaters and nominated for 10 Oscars. Additionally, Netflix brought to life The Other Side of the Wind, a film originally started by Orson Welles in the 1970s, completed by Peter Bogdanovich. This move, however, did not guarantee the film a place on the competitive grounds, as its prior connection to Welles and the Academy's lack of respect towards him were seen as barriers.

Apple's Aspirations

Apple, although relatively new to the content industry, is also looking to make its mark. With its Apple One subscription service, the company aims to attract a wide audience. However, to align with Hollywood's standards and gain the recognition it seeks, Apple too is considering partnerships with established studios like MGM.

The Business of Showbiz

The Academy Awards are often seen as a badge of honor for films and filmmakers. However, the process has been marred by gender inequality and other biases. For instance, women have only been nominated for five out of the 93 best director categories. The latest year saw no female nominations, a stark reminder of the industry's need for change.

Both Netflix and Apple understand that to be part of this prestigious community, they need to share in the business aspect of showbiz. Their move to partner with MGM underscores the fact that these companies are more than just content providers; they are also actors in the larger ecosystem of filmmaking.

Conclusion

The decision by Netflix and Apple to consider buying MGM is a significant step in the evolving landscape of the film industry. It highlights the complex relationship between technology companies and traditional studios, as well as the increasing importance of theatrical releases in Oscar campaigning. As the industry continues to evolve, it remains to be seen how these changes will shape the future of film distribution and recognition.