Disney has completed a $71 billion deal to acquire the assets of Fox Entertainment properties. The deal will further empower Disney to launch a streaming service and will put titles such as ‘Simpsons’, ‘X-Men’ and ‘Star Wars’ under one company.
This is a huge deal for Hollywood and is slated to shake up the entire entertainment structure of America. Disney and Fox are two of the biggest media houses in America, and when the two giants come under one corporate entity, it will give Disney more license to dominate the entertainment market of North America. The deal will also mean that
Disney will now be free to start its new streaming service, touted as ‘Disney Plus’ which will compete against Netflix, the current streaming giant of America.
The deal will not come as good news to some employees of Fox, who will likely be laid off once the deal gets finalized. Thousands of Fox employees will lose their jobs in the coming months, as Disney and Fox have overlapping film-production staffs.
Once Disney owns the properties of ‘Simpsons’ and ‘X-Men’, it will allow the company to go head-to-head against the likes of Amazon and Netflix in the ultimate bid for the attention of American consumers.
Disney requires a good enough reason for making people shift their subscription from Netflix and Amazon to Disney Plus, and so they have acquired the properties of 21st Century Fox, which will give them a huge list of movies and television shows that will further embolden their streaming service.
This new deal will also help Disney to further control the developmental process behind the making of television shows and movies, from start to finish. Disney can now create movies and distribute them by utilizing their streaming service and gather valuable user data such as the viewing habits of their customers, and then sell that data to advertisers for further profit.
Bob Iger, who is the CEO of Disney, has stated in a recent earnings call that developing the services of Disney plus is the company’s number 1 priority at the moment.
Cable and telecom companies are involved in a stiff competition to gather as much market share as possible. Companies such as Comcast and AT&T control the access to the internet for millions of Americans, but still face stiff competition from YouTube, Amazon, and Netflix as these companies continue to gain popularity.
In 2018, AT&T shelled out $81 billion to acquire Time Warner, and soon after the deal was finalized, they launched their very own streaming service. For $15 a month, users can watch Time Warner channels such as TNT and TBS as well as enjoy the full list of movies under Time Warner’s banner.
The Disney deal would also mean that Marvel and X-Men could tie up in future movie installments, as Disney owns the rights to both properties now.
Netflix currently has more than 139 million subscribers under its service, which means the company generates more than $1.4 billion every month from its user base. This will act as a great motivator for Disney who aims to replicate this success and dethrone Netflix as the number 1 streaming service inside North America.