Disney should buy Netflix. Here's Why?

[Oscar Preciado]

Okay, Some of you may hear about the rumors and speculation of Disney purshcasing Netflix. but i don't think that deal is a bad idea. Here's Why?

Disney is apparently having a problem with their newest nemesis: the cable cutting

Ever since people are getting rid of cable or satellite together, even younger people. in favor, of a OTT internet live TV streaming like AT&T's DirecTV Now, Hulu, Netflix, Sling TV, PlayStation Vue, etc. This means that ESPN is losing its subsribers, because ESPN is part of basic cable. This also make Disney's TV business going downhill (that, along with Disney cancelling good shows, Disney Channel focusing on live-action sitcoms and few animated, Disney XD losing its reputation of boys-only channel, etc.)

If Disney buys Netflix, It would end the modern OTT problem, put ESPN on Netflix, also Reed Hastings to become Disney CEO, to fix the Disney's TV business problem such as changing managements, Installing a Pixar-style brain trust to Disney Television Animation, (that is my opinion) acquiring Rainbow s.r.l. (an Italian animation studio who made Winx Club) to merge it with Disney Television Animation and become into "Italian Pixar" (which i did a post about it: http://disboards.com/threads/opinion-wishful-thinking-disney-to-buy-rainbow-s-r-l.3563192/). But at the same time, Reed Hastings should also be in charge of Disney's movie business and Theme Park business.

If Disney buys Netflix, what will happen to Disney's 30% stake on Hulu?

Viacom (parent company of Paramount) did owned Blockbuster Video in 1997 before they part ways in 2004.

 

[CruellaDuVille]

Disney has been easing away from cable for some time now. (Hulu, their deal with Netflix, Disney Movies Everywhere etc. I think they have been ahead of the curve on that. The only people I know anymore with cable are seniors and sports fans. People resent paying for the packages and bundles (I'm one of them). I think DIS should have bought Netflix years ago and I'm thinking that the only reason that they didn't were some kind of contractual obligations with cable. As far a cable goes, the writing is on the wall. It's a matter of time before all of that spaghetti disappears (just like DVD's are).

 

[dreiwhit]

As a Netflix subscriber, I don't want to see Disney buy Netflix. I would prefer to see Disney negotiate with Netflix, Hulu and other streaming services to offer their content.

I'm afraid that Disney will do to Netflix what they've done to their parks. Offer you less for more, and nickle and dime you to death.

 

[mom2rtk]

Disney has been easing away from cable for some time now. (Hulu, their deal with Netflix, Disney Movies Everywhere etc. I think they have been ahead of the curve on that. The only people I know anymore with cable are seniors and sports fans. People resent paying for the packages and bundles (I'm one of them). I think DIS should have bought Netflix years ago and I'm thinking that the only reason that they didn't were some kind of contractual obligations with cable. As far a cable goes, the writing is on the wall. It's a matter of time before all of that spaghetti disappears (just like DVD's are).

That's funny. The vast majority of people I know have cable. And no, they're not all seniors. Not even close.

 

[adam.adbe]

I don't see any upside to Disney for this.

1) Netflix is essentially in the business of driving the value of TV and Movie IP downwards. Disney is in the business of pushing it up.

2) The Republican Party will hold control of the FCC until at least 2020, so network neutrality style legislation will be at best stalled, if not wholesale rolled back. The winds of political fortune are not blowing Netflix's way right now. It'll be hard for them to compete against cable providers who own the pipes, and would rather that customers don't *use* the pipes. (If nothing else, Netflix may well be available for much cheaper in a few years time).

3) HBO are proving that it's possible to live outside the cable/Netflix/Hulu world if the content is there. Disney have content.

4) Netflix has a decent market lead but not an insurmountable one, and their fortunes are less solid outside of the US. Any one of Amazon/Hulu/Google/HBO, and even a slowly awakening Apple could dent or reverse their momentum. Also Disney's largest growth markets are outside of the US where things are very different.


Disney's biggest strategic threat in the US is Comcast. They own distribution, and content (not to mention theme parks). Disney has a larger content portfolio, but its distribution channel is entirely at the mercy of hungry competitors.

 

[Maineiak]

I don't see Disney doing this since they just dumped $1 billion into MLB's BAMtech streaming technology.

http://www.forbes.com/sites/maurybr...y-stakeholder-in-mlbams-bamtech/#4b22b28c1597

 

[Oscar Preciado]

I don't see Disney doing this since they just dumped $1 billion into MLB's BAMtech streaming technology.

http://www.forbes.com/sites/maurybr...y-stakeholder-in-mlbams-bamtech/#4b22b28c1597

Do you think Disney and BAMtech could save ESPN?

 

[rteetz]

Do you think Disney and BAMtech could save ESPN?

Possibly.

Disney has announced they will be rolling out a new ESPN A La Carte option later this year.

 

[ThurlFan]

I don't see any upside to Disney for this.

2) The Republican Party will hold control of the FCC until at least 2020, so network neutrality style legislation will be at best stalled, if not wholesale rolled back. The winds of political fortune are not blowing Netflix's way right now. It'll be hard for them to compete against cable providers who own the pipes, and would rather that customers don't *use* the pipes. (If nothing else, Netflix may well be available for much cheaper in a few years time).

Lack of Net Neutrality would be good for Netflix, as it would inhibit startup competitors. Net neutrality has always been the rule of the day, which is what gives startups a chance to compete. Eliminate net neutrality five years ago and Pandora could have cut deals with cellular providers to keep Spotify from gaining market share. In short, net neutrality is a positive for innovation and competition. It's the way the internet started and I think a lot of people misunderstand that (not including you in that mix necessarily).

/soapbox
/tangent

 

[Mackenzie Click-Mickelson]

Disney has been easing away from cable for some time now. (Hulu, their deal with Netflix, Disney Movies Everywhere etc. I think they have been ahead of the curve on that. The only people I know anymore with cable are seniors and sports fans. People resent paying for the packages and bundles (I'm one of them). I think DIS should have bought Netflix years ago and I'm thinking that the only reason that they didn't were some kind of contractual obligations with cable. As far a cable goes, the writing is on the wall. It's a matter of time before all of that spaghetti disappears (just like DVD's are).

Resenting paying for cable and bundles doesn't equal to cutting cable.

It has a lot to do with what you will be watching as well. If just about everything you watch is available via streaming you may decide to cut the cable because you're not utilizing your options via cable but even then you need to do a cost comparison to see if it's worth it to switch and do things like Sling TV, HBO Go, utilize Netflix, etc.