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Mega mergers make Disney, Comcast more competitive with OTT streamers

The mega media mergers of Disney and Fox and Comcast and Sky have bolstered the two companies’ content holdings and positioned them to compete effectively with online video providers, such as Netflix and Amazon Prime. Following the mergers, two of every USD 10 spent on content worldwide and four of every USD 10 in the United States will be accounted for by Comcast/Sky and Disney/Fox. Together, the two merged companies will account for USD 43 billion spent on content this year with Disney/Fox spending USD 22 billion on originated and acquired content and Comcast/Sky spending USD 21 billion.

While online video platforms, such as Netflix and Amazon Prime continue to be content juggernauts with Netflix on track to spend USD 8 billion on content this year, the mergers of these traditional content sources have reshuffled the deck when it comes to market power. The mergers strengthen to position of both Disney/Fox and Comcast/Sky in the global market and protects them against the rising power of online video, he adds. By executing the mergers, both have increased their libraries of original content, which they can exploit as part of their direct-to-consumer strategies.

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