Did you know that MGM was the first movie studio to use technicolor filming?

​

Remember the roaring lion before MGM movies? His name is Leo, and there have been 7 different Leos over the years!

​

Louis B Mayer is often dubbed as the Chief Architect of MGM’s success, He was an ambitious theatre enthusiast who started working at the age of 13 and opened his first theatre in 1907.

​

He opened his first theatre in Haverhill, MA, and, catering to the tastes and religion of the locals, like The Passion Play (1907) and From the Manger to the Cross (1912).

​

His Vision, MGM Studios was founded in 1924 through the merger of Metro Pictures Corporation, Goldwyn Pictures, and Louis B. Mayer Productions, when Louis convinced the other two for bringing the world class entertainment and movie star roaster under one roof.

​

At that time, the formation of MGM Studios was touted as a turning point in the film industry, bringing together top talent, resources, and creative vision under one roof.
​
​While Paramount studios was equated with European brand of Cinema and Warner bros was tagged to realism, MGM studios was always synonymous with lavishness, star power and a true blue American dream style movie experience.

​

How These 5 Things Set MGM Apart in the Entertainment Industry.

​

1. Talent lineup: MGM Studios boasted an impressive roster of filmmakers, actors, and directors, including legends such as Greta Garbo, Clark Gable, and Judy Garland.
   ​
2. Production Value: Known for its high-quality productions and lavish sets, MGM produced iconic films that captivated audiences worldwide, earning critical acclaim and commercial success.
   ​
3. Innovation: MGM Studios pioneered technical advancements in filmmaking, including the introduction of Technicolor and the creation of the first feature-length musical, “The Broadway Melody.”
   ​
4. Box Office: MGM Studios dominated the box office throughout the Golden Age of Hollywood in the 1940s, producing blockbuster hits such as “Gone with the Wind,” “The Wizard of Oz,” and “Ben-Hur.”
   ​
5. Distribution: MGM also expanded its reach internationally during this time, distributing its films to audiences around the world and establishing itself as a global entertainment powerhouse.

​

MGM was the largest movie studio in Hollywood from the 1920s through World War II
​
Did you know that it is quoted that the first lion who was being trained for the logo shoot, actually killed his trainer?

Financial highlights of the Studios:
​

• MGM Studios experienced significant revenue peaks during 1940s, the studio’s annual revenue reached unprecedented levels, surpassing $100 million.
• In 2010, MGM filed for Chapter 11 bankruptcy protection due to mounting debt and liquidity issues.

​

​

The turning point for MGM Studios came in the mid 1970s, as the film industry faced major shifts in technology, consumer behavior, and market dynamics.
​

Impact on MGM, owing to change in consumer behavior:

1. Financial Strain:

• The decline in box office receipts and the rise of television resulted in declining revenues for MGM Studios.
• The company struggled to adapt to the changing landscape, leading to financial strain and mounting debt. For example, in the early 1960s, MGM’s annual revenue dropped from around $100 million to $50 million.

​

2. Management Changes:

• MGM experienced instability in its leadership, with frequent changes in management
• Internal conflicts and disagreements over strategic direction further hampered the company’s ability to innovate and compete effectively.

​

3. Creative Stagnation:

• As MGM was swamped with financial pressures and management turmoil, its ability to produce innovative and successful films was compromised.
• The studio faced criticism for relying on established formulas and franchises, rather than taking risks and investing in new talent and projects.​
  ​

4 Things MGM studios did to bounce back from $50 Million Losses

1. Diversification: The studio diversified by producing a range of television shows and series, leveraging its extensive library of film properties and intellectual property assets.
   ​
2. Strategic Partnerships: MGM forged strategic partnerships to co-finance and co-produce films and television projects.
   ​
3. Asset Monetization: The studio capitalized on the enduring popularity of its classic films and iconic characters, generating additional revenue streams through licensing agreements, merchandise sales, and digital distribution channels.
   ​
4. Cost-Cutting Measures: The studio optimiszd its production processes, negotiated favourable terms with suppliers, and downsized its workforce to improve profitability and liquidity.

​
Acquisition by Amazon

​

• In May 2021, MGM Studios entered into an agreement to be acquired by Amazon for approximately $8.45 billion, marking a major milestone in its financial history.
  ​
• This was part of MGM strategy to leverage its library of content and monetize on its assets.
  ​
• The acquisition by Amazon positioned MGM for a new milestone of growth and innovation, as they seek to leverage Amazon’s resources, technology, and global reach to further enhance its content offerings.

‍