$Amazon (AMZN.US)$ has acquired Bray Film Studios, the former production site for the iconic Hammer horror film series, to expand its UK-based television and film production.

What Happened: Amazon's Prime Video division has purchased Bray Film Studios, located near London, for an undisclosed sum. Amazon said the studios consist of five stages, workshops, and offices.

Bray Studios has previously collaborated with Amazon MGM Studios, assisting in the production of the second season of the Prime Video series The Lord of the Rings: The Rings of Power in 2022. The next Amazon MGM Studios production at Bray will be the second season of the Russo brothers' spy series Citadel, featuring Richard Madden and Priyanka Chopra Jonas.

The agreement significantly boosts the UK's studio and production industry, which hosts major Hollywood films at facilities owned by $Disney (DIS.US)$, Sky, $Warner Bros Discovery (WBD.US)$, and Amazon. Last year, half of the top 20 film releases, including "Barbie" and "Wonka," were at least partially produced in Britain, according to the Financial Times report.

Hammer has produced notable horror and fantasy films such as The Mummy, The Curse of Frankenstein, and Terence Fisher's Dracula. Bray Film Studios has also been the site for productions like The Rocky Horror Picture Show, Ridley Scott's Alien, Eric Clapton's 'MTV Unplugged' TV special and album, and the Elton John biopic Rocketman.

Why It Matters: The acquisition of Bray Film Studios is in line with Amazon's recent efforts to expand its content library. In May 2021, the company acquired MGM Studios for $8.45 billion, significantly boosting its content offerings for Prime Video. This latest acquisition indicates Amazon's continued commitment to expanding its content production capabilities.

Amazon's move also comes at a time when other tech giants are reassessing their Hollywood strategies. Apple Inc., for instance, is reportedly cutting costs on original shows and movies after spending over $20 billion on content that has yet to attract large audiences.

Amazon's recent financial performance has been strong, with the company reporting a 13% year-over-year increase in net sales in its first-quarter financial results.

Meanwhile, Amazon Prime's increasing dominance in international markets, such as Japan, is also raising concerns about the country's digital deficit. The platform's popularity is contributing to a significant imbalance in Japan's digital trade, potentially pressuring the yen's value, according to Kazuma Kishikawa, an economist at the Daiwa Institute of Research.

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote