Weeks of waiting have finally come to an end with the news that Disney has a reached a deal with 21st Century Fox. $52 Billion is what it took for Disney to acquire 21st Century Fox. Should we be happy? I will tell you why I am.
The Deal with Fox
Disney is acquiring the following assets from Fox:
- Fox Film and TV Studios
- Fox Television, including FX
- Regional Sports Networks
- Majority stake in Hulu
- Star and Sky channels
- National Geographic
It is understandable that you are beginning to hear people talk about the fact that Disney is becoming too powerful, but there is also chatter about Disney destroying the brand of some of the assets. For that I say bull! Disney currently owns, ABC, ESPN, Freeform, LucasFilms, Maker Studios, Marvel Entertainment, Miramax, the Muppets, and Pixar. Did you know that? Think about the content that is played on those forms of media. Does it all fit the “Disney brand”? Didn’t think so. That is right, all that Shondra tv raciness is on a station that is owned by Disney.
Why this is a good move
If it is one thing that Disney respects more than anything else is branding. If Disney wanted to destroy a brand it would have done so already in many ways. That is what not happens, far from it. Let’s take Marvel Entertainment for instance, Marvel Comics, their television shows, comic books, and movies all have their own brand that is separate from that of the Disney brand. You don’t see Mickey Mouse hanging around ESPN when they deliver sports. Disney will take care of the brand that is truly Fox related, but anything that needs to go to a proper location will do so. Case in point, the X-Men and Fantastic Four.
What will happen now
I expect Disney will do the following:
- Form another television group to include Fox Television and FX, or merge that into the current Disney-ABC Television Group
- Move all of the Marvel assets under the Marvel Entertainment umbrella
- Utilize Hulu to become the streaming vehicle for all programming under the Disney Umbrella
This will allow each group to maintain its brand while providing a means for Disney to continue its normal programming through its normal channels.
Is there anything to be concerned about
There are things to worry about with any acquisition. There may be show creators who decide to not be a part of the Disney umbrella and leave. Some shows may get discontinued due to lower ratings per the Disney standard. Content will undoubtedly get moved to another location, which will make the consumer decide on switching. All that being said, the track record for Disney allows me to be calm and trust they will do the right thing with the newly acquired assets.
At this point all we can do is wait and see. As consumers we always reserve the right voice our concerns and based on experience, Disney will actually listen.