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

CNBC stock host Jim Cramer recommends Caterpillar and Home Depot during the current U.S. stock market rally.

Charlene Vos

2019-03-15 13:36:00 Friday ET

CNBC stock host Jim Cramer recommends Caterpillar and Home Depot during the current U.S. stock market rally.

CNBC stock host Jim Cramer recommends both Caterpillar and Home Depot as the U.S. bull market is likely to continue in light of the recent Fed Chair comment

+See More

The current Trump stock market rally has been impressive from November 2016 to October 2017.

John Fourier

2017-10-09 09:34:00 Monday ET

The current Trump stock market rally has been impressive from November 2016 to October 2017.

The current Trump stock market rally has been impressive from November 2016 to October 2017. S&P 500 has risen by 21.1% since the 2016 presidential elec

+See More

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo.

Peter Prince

2020-08-12 07:25:00 Wednesday ET

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo.

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo. Jerry Porras, Stewart Emer

+See More

The Federal Communications Commission (FCC) considers its majority vote to dismantle net neutrality rules.

John Fourier

2017-12-13 06:39:00 Wednesday ET

The Federal Communications Commission (FCC) considers its majority vote to dismantle net neutrality rules.

The Federal Communications Commission (FCC) has decided its majority vote to dismantle rules and regulations of most Internet service providers (ISPs) that

+See More

Apple files an appeal to overturn the recent iPhone sales ban in China due to its patent infringement of Qualcomm proprietary technology.

Jonah Whanau

2018-12-17 08:43:00 Monday ET

Apple files an appeal to overturn the recent iPhone sales ban in China due to its patent infringement of Qualcomm proprietary technology.

Apple files an appeal to overturn the recent iPhone sales ban in China due to its patent infringement of Qualcomm proprietary technology. This recent ban of

+See More

Management consultants can build sustainable trust-driven client relations through the accelerant curve of business value creation.

Monica McNeil

2020-11-17 08:27:00 Tuesday ET

Management consultants can build sustainable trust-driven client relations through the accelerant curve of business value creation.

Management consultants can build sustainable trust-driven client relations through the accelerant curve of business value creation. Alan Weiss (2016)

+See More