In the media and entertainment market, facing frequent mergers, Walt Disney Co. and Comcast Corp. have been going to be more influential after the sale of major assets of 21st Century Fox Inc, according to a report by London-based media analysis firm Ampere Analysis.
Disney and Comcast will be controlling about 40 percent of the U.S. subscribers, which will be 20 percent on global scale, after completing their deals of Disney acquiring film and television division of Fox for $71 billion and Comcast made an agreement to buy Sky PLC.
Netflix’s vowing to spend $8 billion on media services has initially driven the Disney to buy the Fox, also highlighting the response of traditional media players to the threats by comparatively new entrants.
The growing number of cord-cutting and stagnating attendance in theaters has further pushed the studio companies to find ways for establishment of own commercial relationship and to directly provide subscribers an entertainment through their original television and movie shows.
Now to tap the business from Netflix, both Disney and Comcast together have been turning the tables spending about $43 billion, as projected by the Ampere, on contents by end of this year, which includes $21 billion from Comcast through its NBC Universal and Sky divisions and the other $22 billion by Disney.
After merger, 23 percent will become the share of Disney-Fox which they will be spending on domestic programming, as found in analysis.
To catch the rapidly expanding wave of video streaming, Disney, in time span of just more than a year, has made itself conversant with the required efforts. Disney, late in 2019, has been setting up its own direct-to-consumer service by making its own library using Fox’s National Geographic along with its Marvel Studios and Pixar Animation.
Expanding its footprints in Europe to 23 million TV, phones and internet services customers, Comcast, for $38.8 billion, last year walked away with control of Sky after an initial attempt for the acquisition of Fox.