{"id":51239,"date":"2017-11-08T06:45:25","date_gmt":"2017-11-08T06:45:25","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=51239"},"modified":"2017-11-08T06:45:25","modified_gmt":"2017-11-08T06:45:25","slug":"fox-in-the-mouse-house-could-give-disney-an-edge-in-streaming-wars","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/fox-in-the-mouse-house-could-give-disney-an-edge-in-streaming-wars.html","title":{"rendered":"Fox in the Mouse House could give Disney an edge in streaming wars"},"content":{"rendered":"

Fox in the Mouse House could give Disney an edge in streaming wars<\/span><\/strong><\/span><\/h2>\n

Fox in the Mouse House could give Disney an edge in streaming wars: The two companies reportedly held talks in recent weeks about a potential sale of Fox\u2019s FX and National Geographic channels, its movie studio and some other international assets to Disney, according to media reports. The discussions had stopped as of Monday but could restart, the reports said.<\/span><\/p>\n

Television viewers have been rapidly embracing online services like Netflix over traditional pay TV packages, a shift that is enticing deep-pocketed technology companies like Amazon.com Inc (AMZN.O) and Facebook Inc (FB.O) into video offerings.<\/span><\/p>\n

Investors who have driven Netflix shares to record highs this year were selling on Tuesday, sending the company\u2019s stock down more than 2 percent. Disney and Fox shares rose roughly 1 percent each as analysts said a deal between the two media giants could benefit Disney\u2019s planned streaming push.<\/span><\/p>\n

\u201cIt could be very formidable,\u201d said Bruce Tuchman, a media investor, entrepreneur and adviser to streaming services like iflix. \u201cThey wouldn\u2019t have to leave the confines of their own company to build a competitive service.\u201d<\/span><\/p>\n

Disney announced in August it was pulling its first-run movies from Netflix starting in 2019 to put them on a Disney-branded service.<\/span><\/p>\n

With Fox, Disney in the future could yank Fox programming from Netflix and put shows like \u201cThe Simpsons\u201d and movie franchises including \u201cAvatar\u201d alongside Disney classics such as \u201cBeauty and the Beast\u201d plus \u201cStar Wars\u201d and Marvel films.<\/span><\/p>\n

That would leave a hole in Netflix. Fox made up 17 percent of Netflix\u2019s top-rated shows by IMDb as of June, while Disney made up 7 percent, according to MoffettNathanson and YipitData.<\/span><\/p>\n

Disney and Fox also each own roughly 25 percent of streaming service Hulu, which could serve as another platform for content.<\/span><\/p>\n

Disney, Fox and Netflix had no comment.<\/span><\/p>\n

In August, Netflix\u2019s chief content officer, Ted Sarandos, told Reuters that his company was investing more in its own programming to counter moves by traditional media companies.<\/span><\/p>\n

\u201cThat\u2019s why we got into the originals business five years ago, anticipating it may be not as easy a conversation with studios and networks\u201d to license their programming, Sarandos said.<\/span><\/p>\n

Netflix plans to spend $8 billion on content next year, the company has said. Disney spent $13.5 billion on content in fiscal 2017, about half of it on sports programming, according to MoffettNathanson estimates.<\/span><\/p>\n

Disney will be starting its online service more than a decade after Netflix, which now boasts 109 million streaming customers around the world. Disney could expand its global reach if it acquires Fox TV channel Star India and the company\u2019s stake in European pay TV provider Sky Plc (SKYB.L), which already has made inroads in the streaming market.<\/span><\/p>\n

Needham & Co analyst Laura Martin said Disney needs to buy a film library from Fox or another big company to compete directly with Netflix. \u201cDisney\u2019s libraries are very high quality, but they are very small,\u201d Martin said. \u201cThey could not do it alone.\u201d<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-walt-disney-netflix-fox-analysis\/fox-in-the-mouse-house-could-give-disney-an-edge-in-streaming-wars-idUSKBN1D801X<\/span><\/span><\/p>\n

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