Disney In Talks to Acquire Majority of 21st Century Fox

[JaxDad]

They wouldn't necessarily have to bait and switch on price. Depending on the amount of the combined catalogs they digitize, Disney could charge $25/month and with the amount of content available, people wouldn't bat an eye. As the rights holders, without the need to pay others for the right to run its content, Disney streaming would instantly be more profitable than Netflix, even it they stayed locked step with Netflix pricing.

Perhaps. Disney knows most consumers won't know or care that they aren't paying for rights. They will price according to how much more and better content they can offer. Supply and demand. For me personally, it will just be a matter of meeting my internal price point. Of course, if they push past that, I may not have a decent alternative...

 

[JamesGarvey]

This is a bit of an extrapolation but a successful Disney streaming service could indirectly be a Netflix killer. If it works out, other rights holders could figure its worth it to build their own over the top services and keep all the money vs. the current method of licensing their media to Netflix. All goes to the companies' interest/need of some money now or more money later (after an initial investment)

 

[TheMaxRebo]

This is a bit of an extrapolation but a successful Disney streaming service could indirectly be a Netflix killer. If it works out, other rights holders could figure its worth it to build their own over the top services and keep all the money vs. the current method of licensing their media to Netflix. All goes to the companies' interest/need of some money now or more money later (after an initial investment)

What it does as well is really pushes Netflix to be a content creator even more - which apparently is there plan - so people would get Netflix for the exclusive content they create more than the content they license to have

 

[ckb_nc]

This deal is about content across multiple platforms. It should be interesting to see the long term impact on Universal as many of its ride premises are now the intellectual property of Disney. Do you really promote a brand you do not own

 

[JamesGarvey]

Yes, Netflix is on a ramp up to have 50% of their content be self owned, I think by 2021, but I doubt that currently accounts for shrinking licensing rights. That said, they may just end up paying out more in fees to keep rights owners from splitting off.

 

[Lee Matthews]

This deal is about content across multiple platforms. It should be interesting to see the long term impact on Universal as many of its ride premises are now the intellectual property of Disney. Do you really promote a brand you do not own

There’s an easy deal here. Universal give Disney back the theme parks rights for Marvel in Orlando and they can keep the rights to The Simpson’s in USO

 

[JaxDad]

This deal is about content across multiple platforms. It should be interesting to see the long term impact on Universal as many of its ride premises are now the intellectual property of Disney. Do you really promote a brand you do not own

Yes, if you can negotiate favorable terms...

 

[Mac30188]

I do not think Simpsons and Marvel are even close to the same ballpark with regard to IPs. Maybe 10 years ago. You can use that as a sweetener or for leverage to get a deal done, but IMHO no way that Universal lets Disney have Marvel in Orlando without a much bigger carrot. From a theme park perspective it is probably the most important IP they have (Harry Potter certainly could make a solid argument.)

 

[dlavender]

How much stake does that give Disney in Hulu now? I believe Fox had 30%.

 

[Geoff_M]

Finally, the regional sports networks, consolidated with ESPN, could help shore up a trouble spot, or at least make it more attractive as a spin off at some point. So two high margin growth pieces and a bulwark are pretty impressive for ancillary pieces.

Fox's sports assets are not part of the deal:

Immediately prior to the acquisition, 21st Century Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.

 

[TheMaxRebo]

How much stake does that give Disney in Hulu now? I believe Fox had 30%.

If I am reading this line right, it would give them 60% -> "Disney also would gain controlling interest in the TV streaming service Hulu, adding Fox’s 30% stake to its own equal share"

 

[dina444444]

How much stake does that give Disney in Hulu now? I believe Fox had 30%.

Disney also owns 30 percent.

 

[TheMaxRebo]

Fox's sports assets are not part of the deal:

no, the regional sports networks are part of the deal - just not the national networks with you cited

"The agreement encompasses Fox’s prolific film and television studios, its FX and National Geographic cable networks, Fox’s regional sports networks, its 39% stake in U.K. satellite television provider Sky and its international cable networks, including Star India."

http://deadline.com/2017/12/disney-fox-merger-deal-done-hollywood-media-1202219012/

 

[dina444444]

Fox's sports assets are not part of the deal:

The regional sports networks are. Fox will remain with the National sport TV assets.

 

[Mr. Mickey]

Price was 52 billion instead of 75 but it’s official now

 

[onetoescape]

There are so many things with this deal. The Disney streaming package will look extremely tempting if it comes in at reasonable price. What becomes of the adult movies (couldn't think of a better term!) that Disney controls now. Could they really give them to Netflix or Amazon in the US or internationally? Universal Resort is in a bad way, medium to longer imo. Short term things will be fine but as time goes on the connection between who owns the IP becomes very clear. Two big zones in their parks are now promoting the competition. This shows the folly of licensing your IP for your rides rather than owning them even though I m looking forward to Nintendo.

 

[onetoescape]

Disney could have the UK entertainment market completely sewn up.

SKY has 23 million subscribers which Disney could make their content exclusive to over other platforms.

At the same time, Netflix is popular here so if Disney launch their streaming service but chip away at the streaming market share, no one else in the UK stands a chance

What’s tricky is that Disney sold the UK rights to ESPN to pay TV competitor BT and their deal ends in 2022 so disney could technically be competing with itself

Wasn't Fox looking to buy Sky outright a number of months ago? I wonder what this means if anything for the next round of football rights.

 

[Geoff_M]

The regional sports networks are. Fox will remain with the National sport TV assets.

Ah, got it... I didn't see the "asterisk" regarding that piece of the Fox Sports world.

 

[PuppyJonathan]

Now that it’ll its official, is it legal that this could happen? Also now there is no outside IPs in the parks again except for twilight zone

 

[dina444444]

Now that it’ll its official, is it legal that this could happen? Also now there is no outside IPs in the parks again except for twilight zone

Avatar is still licensed. Disney will now own the distribution rights but James Cameron still owns the property.