There had been some talks between Walt Disney Co and Twenty-First Century Fox over the past few weeks and if the talks become fruitful, then Walt Disney will be able to provide real competition to streaming giants Netflix.
Netflix is slowly dominating the TV and Movies sector and it is up to Walt Disney to provide competition to them. Walt Disney and Twenty-First Century Fox had reportedly held talks over the past few weeks as Disney looks to acquire Fox’s FX and National Geographic channels. This was reported by media groups across the country. The talks were suspended on Monday but it is very likely that the two companies will resume negotiations very soon.
TV fans all over the globe have been embracing the streaming service offered by Netflix as it is now been preferred over traditional pay TV packages, with other giant companies like Amazon and Facebook also venturing into the TV streaming sector.
With this rise, Netflix has witnessed its stocks grow rapidly as the company reported a record high on Tuesday. This brought down the company’s stock by more than 2%. The shares of Disney and Fox was up by 1% each as the potential deal between the two got investors excited.
A media investor and advisor to streaming services like Netflix, Bruce Tuchman stated that “It could be very formidable. They wouldn’t have to leave the confines of their own company to build a competitive service.”
Back in August, Disney announced that it was looking to air its first movies from Netflix by 2019 as it looks to add them to their Disney-branded service. If their acquisition of Fox is successful, this will make it easier for Disney to pull away shows from Netflix and replace it with their own. This will definitely be a blow to Netflix s Fox already makes up at least 17% of Netflix’s highest-rated shows, with Disney just making only 7%.
Streaming service Hulu has both Fox and Disney as investors with both companies having a 25% stake each in the Hulu. Hulu will likely serve as a great platform for content if the deal goes through. When contacted, Disney, Fox, and Netflix had no comment about the situation.