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
Thomas Piketty frames economic inequality as a global phenomenon.
Apple Boston

2017-01-11 11:38:00 Wednesday ET

Thomas Piketty frames economic inequality as a global phenomenon.

Thomas Piketty's recent new book *Capital in the Twenty-First Century* frames income and wealth inequality now as a global economic phenomenon. When

+See More
The Trump administration still expects to reach a Sino-U.S. trade agreement with better intellectual property protection and enforcement.
Apple Boston

2019-05-11 10:28:00 Saturday ET

The Trump administration still expects to reach a Sino-U.S. trade agreement with better intellectual property protection and enforcement.

The Trump administration still expects to reach a Sino-U.S. trade agreement with a better mechanism for intellectual property protection and enforcement. Pr

+See More
Berkeley professor and economist Barry Eichengreen reconciles the nominal and real interest rates to argue in favor of greater fiscal deficits.
Joseph Corr

2019-05-23 10:33:00 Thursday ET

Berkeley professor and economist Barry Eichengreen reconciles the nominal and real interest rates to argue in favor of greater fiscal deficits.

Berkeley professor and economist Barry Eichengreen reconciles the nominal and real interest rates to argue in favor of greater fiscal deficits. French econo

+See More
Facebook faces a major data breach by Cambridge Analytica that has harvested information from 50 million Facebook users.
Amy Hamilton

2018-03-17 09:35:00 Saturday ET

Facebook faces a major data breach by Cambridge Analytica that has harvested information from 50 million Facebook users.

Facebook faces a major data breach by Cambridge Analytica that has harvested private information from more than 50 million Facebook users. In a Facebook pos

+See More
Zillow share price plunges 20% year-to-date as Redfin and Trulia also experience an economic slowdown in the real estate market.
Daisy Harvey

2018-11-17 09:33:00 Saturday ET

Zillow share price plunges 20% year-to-date as Redfin and Trulia also experience an economic slowdown in the real estate market.

Zillow share price plunges 20% year-to-date as its competitors Redfin and Trulia also experience an economic slowdown in the real estate market. The real es

+See More
Personal finance author William Danko shares 3 top secrets for better wealth creation.
Rose Prince

2018-12-01 11:37:00 Saturday ET

Personal finance author William Danko shares 3 top secrets for better wealth creation.

As the solo author of the books Millionaire Next Door and Richer Than Millionaire, William Danko shares 3 top secrets for *better wealth creation*. True pro

+See More