Disney to buy Fox
Tom Dougherty, CEO – Stealing Share
14 December 2017
Disney means business with Fox acquisition
What happens when an industry evolves into chaos? You consolidate. Or least that’s what Disney is doing, announcing it’s buying most of 21st Century Fox.
The deal still must pass muster with regulators, so it’ll be at least a year until we see any effect. However, this acquisition comes off the heels of Disney buying Pixar, Marvel and the Star Wars franchise.
With the purchase, it also receives Fox’s share of Hulu, a streaming service fighting with Netflix and Amazon for market share. The deal makes Disney a majority shareholder.
What’s going on here?
“Save your pennies, boys and girls. Cuz the competitors are joining forces.”
It’s simple. The habits of viewers change constantly, with cable cord cutting and the explosion of streaming media taking root. (Think of this. Netflix spends $7 billion on content alone.) Disney announces it will sport its own streaming services to compete. One for entertainment and one for sports. This studio is taking on the world now.
What the Disney Fox deal means to you
The sports streaming service intrigues me. Live sports remain the final advantage for live TV and the cable companies. Want to watch the NFL? Get DirecTV or a cable company.
But changes persist. Amazon’s deal with the NFL gives it streaming rights to the Thursday Night Football package. (Which is why, even with the low quality of play and potential for injury, Thursday Night Football remains for years to come.) In addition, Verizon re-ups its streaming deal with the league.
In reaction to the downfall of traditional viewing, large media companies are bringing in the armies. Even AT&T hopes to acquire Time Warner.
Soon, steaming media will ape the airlines. There will only be a few of them left standing. Disney, Verizon, AT&T, Netflix, Hulu (depending on what Disney does with it) and Amazon. Not to forget Apple, which promises to join the fray.
You can forget flipping through channels. Now, you access any content when you want it. And, like how the networks once ruled the landscape, the streaming services leave you with just six or seven outlets.
Is it any better for viewers? Yes and no. Simplicity and access reigns, but costs rise. (Especially with Net Neutrality threatening to be repealed.) Save your pennies, boys and girls. Cuz the competitors are joining forces.
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