Netflix stares at higher content costs as Disney and Fox hold merger talks.

Joseph Corr

2017-10-21 08:45:00 Sat ET

Netflix stares at higher content costs as Disney and Fox hold merger talks. Disney has held talks to acquire most of 21st Century Fox's business equity. These media titans are planning a merger in part to become more competitive against several digital video platforms such as Netflix, YouTube, and Amazon.

Fox senior executives believe that a tighter focus group of properties around news and sports may better compete with several other digital media giants.

In fact, Netflix's media content costs have increased quite a bit in recent times. Amazon and Google's YouTube face the gradual shrinkage of average revenue per user (ARPU). In recent times, Disney has announced its intention to pull back all of its movies from Netflix and other similar digital media platforms in order to establish at least 2 major direct-to-consumer media programs: one for sports and one for its key franchises such as Star Wars and Marvel Heroes.

For Disney, the golden opportunity to take control of another movie studio and significant TV production helps enhance its direct-to-consumer entertainment media assets with significant exposure to international markets such as Britain, Germany, Italy, and some parts of Asia. This market penetration sifts through the current Fox networks and 39% ownership of Sky TV networks.

In this context, it is quite reasonable to expect both Disney and Fox share prices to appreciate in the foreseeable future.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Laura Hermes

2019-11-21 11:34:00 Thursday ET

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression. The current U.S. ec

+See More

President Trump refreshes American fiscal fears and sovereign debt concerns through the One Big Beautiful Bill Act.

Jacob Miramar

2025-06-21 05:25:00 Saturday ET

President Trump refreshes American fiscal fears and sovereign debt concerns through the One Big Beautiful Bill Act.

President Trump refreshes American fiscal fears, worries, and concerns through the One Big Beautiful Bill Act. The Congressional Budget Office (CBO) estimat

+See More

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

Apple Boston

2019-01-08 17:46:00 Tuesday ET

Federal Reserve normalizes the current interest rate hike to signal its own independence from the White House.

President Trump forces the Federal Reserve to normalize the current interest rate hike to signal its own monetary policy independence from the White House.

+See More

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

Monica McNeil

2018-05-11 09:37:00 Friday ET

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2

+See More

Facebook, Apple, Microsoft, Google, and Amazon account for more than 15% of market capitalization of the U.S. stock market.

Jacob Miramar

2017-05-19 09:39:00 Friday ET

Facebook, Apple, Microsoft, Google, and Amazon account for more than 15% of market capitalization of the U.S. stock market.

FAMGA stands for Facebook, Apple, Microsoft, Google, and Amazon. These tech giants account for more than 15% of market capitalization of the American stock

+See More

Global climate change can cause an adverse impact on long-term real GDP economic growth.

Dan Rochefort

2019-10-27 17:37:00 Sunday ET

Global climate change can cause an adverse impact on long-term real GDP economic growth.

International climate change can cause an adverse impact on long-term real GDP economic growth. USC climate change economist Hashem Pesaran and his co-autho

+See More