Disney-21st Century Fox along with the war over streaming

Disney buying 21st Century Fox for $52.4 billion

Odds are, if you’re reading This particular story, you’re a subscriber to Netflix.

In two years, will you be a subscriber to Disney, too?

of which’s what Disney head Bob Iger hopes. In fact, of which’s the premise of This particular week’s $52 billion Disney-21st Century Fox deal. Executives at the two companies are talking openly about taking on Netflix, which can be a fundamental change to how Disney along with Fox currently operate.

“When Disney pull all their — along with Fox — pull their programs back, or stop selling anything to Netflix, the idea will be interesting how of which affects them,” 21st Century Fox (FOX) patriarch Rupert Murdoch said Thursday.

Murdoch can be basically telling Netflix “we’re turning off the spigot.” The Fox assets will super-charge Disney’s own streaming ambitions.

Netflix has been expecting This particular for a long time. of which’s one of the reasons the streaming king can be investing billions of dollars in programming, including dozens of original series along with films.

Related: Bob Iger can be the undisputed king of Hollywood

What’s the ultimate outcome? In a few years you may be paying for Disney’s streaming service along with Netflix along with probably a few others. Or maybe a bundle of them all — a newfangled form of cable TV.

Thursday’s P.R. blitz by Iger along with Murdoch, promoting the virtues of the Disney-Fox deal, left little doubt of which the deal can be all about battling Netflix, Google, Facebook along with different Silicon Valley giants.

The big media world buzzword right right now can be “DTC,” short for “direct-to-consumer,” meaning a product you buy directly through Disney, instead of a distributor like Comcast.

If the 21st Century Fox sale can be approved by regulators, Fox’s shows along with movies will be building blocks for Disney’s forthcoming streaming service, a key piece of Iger’s “DTC” strategy.

This particular was a big part of the pitch to investors on Thursday: Disney (DIS) said buying Fox’s assets “expands our global reach” along with “broadens our global direct-to-consumer capabilities.”

The Disney-branded streaming service won’t launch until 2019. The company can be also planning to introduce an ESPN-branded sports streaming service in spring 2018.

In preparation, Disney has already said of which the idea’s not going to renew its movie distribution deal with Netflix (NFLX).

Fox has also been pulling back some of its programming. Its cable channel FX has been promoting the FX+ app as an alternative to Netflix.

Of course, Netflix has been cutting huge licensing checks to media companies for almost a decade right now, so This particular brand new direction comes with risks.

The cable bundle still provides most of Fox’s profits, along with will for the foreseeable future.

although executives like Iger along with Murdoch have been talking about This particular streaming shift for some time. The modifications in consumer behavior are obvious for all to see.

In interviews on Thursday, Murdoch described the competitive landscape in crystal clear terms.

“I think Facebook coming in, along with Apple, along with Netflix are all going to be big players,” Murdoch said on Fox Business, one of the channels he’ll still own after the Disney transaction closes.

He pointed out of which Facebook tried to bid for the streaming rights to cricket matches earlier This particular year. Murdoch’s Star media group won out.

“of which was a warning shot,” he said of Facebook. “They’ve announced right now they’re going to spend billions on sports rights. So we don’t know which country they’ll go after or what they’ll do.”

This particular can be how media moguls right now see the landscape: As a battlefield, with themselves lining up against tech heavyweights.

Related: White House confirms: Trump talked to Murdoch about Disney deal

This particular perspective also contributed to Time Warner’s decision to sell to AT&T (T) last year. (Time Warner (TWX) can be sy88pgw’s parent company.) The deal has been delayed due to an antitrust lawsuit by the U.S. government.

Disney along with Fox will face regulatory scrutiny as well, although President Trump has already weighed in favorably about his friend Murdoch’s big bet.

Disney along with Fox’s argument to regulators will be, in effect, of which Netflix, Amazon (AMZN) along with different players are getting bigger along with bigger, so we have to be allowed to keep up.

“Most folks who don’t follow This particular closely may not be aware of the sheer power along with investment of the brand new entrants along with how of which can be affecting our space,” a Fox source said Thursday. The person requested anonymity to describe the looming antitrust arguments.

“Content creation can be occurring from the most competitive environment in its history,” the source said. “So, consolidation has to be viewed the way consumers are experiencing the idea.”

They are increasingly experiencing the idea as a series of streams.

sy88pgw (brand new York) First published December 15, 2017: 9:42 AM ET

Disney-21st Century Fox along with the war over streaming

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