By Kristy Dorsey

Amazon is buying Hollywood film studio MGM, home of the James Bond franchise, for $8.45 billion (£6bn), giving it a huge library of films and TV shows and ramping up competition with streaming rivals led by Netflix and Disney+.

The online retail giant led by Jeff Bezos will swallow up nearly a century of film-making history as it bulks up its Prime subscription service. It hands Amazon a wealth of content from films such as Rocky, Robocop and Singin' In The Rain to reality TV staples such as The Real Housewives of Beverley Hills.

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MGM and other film studios have endured tough times during the pandemic with cinemas closed and its release date for new Bond film No Time To Die repeatedly delayed.

A joint statement from the companies said: "Amazon will help preserve MGM's heritage and catalogue of films, and provide customers with greater access to these existing works."

The deal will boost Amazon Prime Video's offering by about 4,000 films and some 17,000 television shows.

It marks the latest big move in the battle for video streaming following the spin-off of Warner Media to merge with Discovery in a £30.5bn tie-up. It comes as Mr Bezos prepares to step down as chief executive of Amazon this summer.