BURBANK, Calif.-Analysts say Disney’s $52.4 billion deal to buy a large part of 21st Century Fox will put it in a better position to compete with the likes of Netflix and Amazon.
Paolo Pescatore of CCS Insight says that “even a giant like Disney has not been immune” to changes in how consumers watch TV shows and movies. The deal, he says, will give Disney greater control of all aspects of content, from creation to distribution. That would lead to greater sources of revenue.
Disney already has announced plans to create its own streaming service in 2019 to compete with Netflix. Disney will now be able to beef up that offering with additional video from Fox.
Daniel Ives, head of technology research at GBH Insights, calls the announcement a “home run deal” for Disney, one that will give the company and its upcoming streaming service “a clear runway to gain market and mind share” from Netflix and others.