After months of speculation and even trying to sell themselves, MGM studios, the company behind James Bond, is filling for chapter 11 bankruptcy. Their total debt amounts to 4 billion dollars, and by filling for bankruptcy they are hoping to get rid of this debt while they restructure the company and operate as normal. But they don’t have enough budget to carry on with films previously scheduled for release in 2011 and 2012, like the new James Bond movie that has been suspended indefinitely. Their bankruptcy plan includes merging with the privately-owned production company Spyglass Entertainment to create the new MGM company.
We saw in class how Blockbuster’s bad tactical desicions brought them into bankrupcy. Here we see how not only video rentals but also film studios, are affected by the shifting consumer preferences to watch movies online for free instead of renting it or going to the theater. MGM has to change strategies in order to stay affloat.
Will there be another OO7 movie?