(11-07-2017 08:22 AM)orangefan Wrote:  Disney is most likely looking at content for its new subscription service to put in a better position to compete with Netflix and HBO. Not only do you get Fox's recent release movies (currently shown in the pay window on HBO), you get a huge library of films and TV shows, including the original Star Wars. As folks have pointed out, it gets them the X-Men and Fantastic Four. Also, don't discount the value of all of the series produced or owned by FX, many of which are very good (54 Emmy nominations this past year compared to ABC's 34). FX also owns the entire library of Simpsons episodes. The combination of Disney, Marvel, Lucasfilm, Pixar, ABC, ESPN films (30 for 30, etc.), Disney Channel, Freeform, Fox studios, Fox television production, and FX would provide a huge library of existing material together with production capability for a virtually unlimited number of new shows and movies.

As ESPN has entered a stage with limited growth, Disney needs a replacement growth vehicle. Creating a viable competitor to Netflix and HBO is an excellent strategic play to try to accomplish this. As someone pointed out, Netflix has a market cap of $86 billion. Disney, with ESPN and all of its other assets, has a market cap of less than twice this amount at $155 billion. The Fox assets being discussed would strongly bolster Disney's efforts to implement this strategy.

THIS. Content is king. Nobody buys streaming services or cable because of the platform. Ultimately, they buy them to watch content. In an al a carte future, exclusive content will determine what networks and streaming services will be considered “must haves” by consumers and which will be fighting to survive. Regardless of whether cable or streaming wins the battle for subscribers, whoever controls huge blocks of content will be certain survivors