- Disney is preparing for a full-scale rivalry with Netflix.
- That means Disney needs all the programming it can get as it plans for a direct-to-consumer, digitally-dominated media future.
- Disney’s first shot in this war may be to buy a collection of assets from 21st Century Fox.
- More deals are sure to follow.
Disney may be closing in on a media-industry-rocking deal to acquire a collection of assets from 21st Century Fox. CNBC reports that a deal, which would include Fox’s movie studios, could be announced as soon as next week.
The deal comes as media companies look for ways to survive as consumers shift their attention to ad-free streaming services from Netflix and Amazon, cut the cord in increasing numbers and spend an inordinate amount of time glued to mobile screens and social media.
Disney’s already declared that it is going to war with Netflix by launching its own streaming service. Already Disney has some big assets to offer subscribers to this potential service, including movies made by its own studios and the rights to mega-hits like Star Wars. But it’s going to need as many big guns as it can get in that fight.
If the future is less about cable bundles and classic TV advertising, and more about bringing content directly to paying subscribers, giants like Disney can’t stand pat. That’s where Fox comes in.
As one industry observer put it, “nobody knows what the business model of the future is. But if you have a lot of content, you’re either going to get people to pay for it, run ads in it, or license it to somebody. So this is a pretty good hedge for Disney.”
So, here’s what we’re thinking about in terms of breaking down the potential deal:
Building out a super-powered library
Disney’s content library seems as good as it Read More Here