Many streaming services have attempted to compete with Netflix, and the majority of them have failed. In a surprising deal that could change the future of entertainment, the Walt Disney Co. announced that they are purchasing the entertainment division of 21st Century Fox for a staggering $52.4 billion.
Included in the deal, Walt Disney Co. is going to acquire the 20th Century Fox movie studio (original Star Wars), Fox television studio, FX Network, National Geographic Channel, and Fox Searchlight. In addition to that, Disney is also going to have a 60% stake in Hulu, and international assets by way of Star India TV and Sky Plc., U.K.
The massive agreement and direct change to Walt Disney Co. content puts Disney in prime position to compete head-to-head with Netflix, Amazon, and other streaming contenders. Disney has already announced the ESPN Plus Sports service next year and is pulling all Disney and associated content from Netflix in 2019. The Disney and Fox TV deal just adds Fox entertainment to the mix.
What is now being called the new 21st Century Fox is still going to keep control of the areas that they’ve said have received their highest rankings. Known for news and sports, that’s where they want to focus the majority of their attention while the entertainment division gets handled by a qualified partner. The Fox television channel, Fox sports channels including Big Ten Network, and the Fox News channel are remaining with the new 21st Century Fox.
While stocks in both Fox and Disney have been up since the announcement of the deal, there is plenty of speculation saying that the deal is going to hinder Disney instead of helping them. Integration and acquisition approval is supposed to take up to two years, which leaves Netflix ample time to not only grow their already impressive subscriber count but invest in more. Netflix has proved to powerful streaming force. Though is the merge of Fox Entertainment and Walt Disney Co. going to be more powerful?