Disney Buys Fox

Disney purchased 21st Century Fox last month, and according to Erich Schwartzel this is by far the largest merger in the history of the company. Over the past few years the entertainment industry has undergone rapid consolidation in response to the increase in popularity of streaming services. Disney has also recently removed all of its products from Netflix, so it is likely that they are setting the stage for the launch of their own streaming platform. If Disney is successful, this will allow them to skip all of the "middle men" that are currently involved in getting their product to the consumer.

This acquisition of Fox by Disney is not favorable for everyone. There will be thousands of layoffs across Fox according to Erich Schwartzel, and only the top executives will be making the transition to Disney. Also analysts are expecting movie theatre owners to take big hits upon release of Disney's new streaming service. According to the article, Disney was responsible for 26%  of the box office market share in 2018, and Fox accounted for 9%. Future releases from Disney and Fox will no longer be available at the movie theatre once the streaming service is released, so over a third of the box office revenue will be disappearing. 

This applies to our class, because Disney will need to have enough selections available on their streaming service so consumers will be willing to pay a monthly fee. Also, theatre owners are going to have to explore new outlets and get creative in the coming years if they want to stay in business. 

Nikolos Oakes

Article Title: Disney Closes $71.3 Billion Deal for 21st Century Fox Assets 

Article Link: https://www.wsj.com/articles/disney-completes-buy-of-foxs-entertainment-assets-11553074200

 Photo Link: https://io9.gizmodo.com/new-details-emerge-about-disneys-streaming-service-whi-1828627324

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