According to foreign media CNBC on Monday local time, informed sources revealed that 21st Century Fox is negotiating with Disney and expects most of its business will be acquired by Disney.Although the potential merger transaction is still Can not be finalized, but it is undeniable that the entertainment media industry is undergoing dramatic changes.
Discovery Communications bought Scripps Network Interactive for $ 12 billion in July of this year; DreamWorks was acquired by Comcast last year; AOL and Yahoo are now owned by Verizon; and AT & T and Time Warner also agree to 'alliance' These deals are in fact to avoid violating the U.S. Department of Justice's antitrust laws.
However, according to CNBC's report in December last year, the merger of CBS and Viacom was withdrawn by Shari Redstone, the vice president of the boards of both companies.
Netflix, which has 109.3 million subscribers worldwide at this stage, has become a major content creation and distribution company in the entertainment industry and is also trying to tap into the traditional television and cable businesses, but according to industry management consulting Greg Portell, a partner at AT Kearney, said that Netflix will be under great competitive pressure as several media giants start mergers and launch their own on-demand content subscription service.
Portell said: 'If Disney and Comcast - or any one of a large number of subscribers a large number of industry giants merge, it will certainly make Netflix's development more difficult.'
Netflix, which has announced it will spend $ 8 billion next year on content production, now has a series of reality shows and television series, but Netflix may have had some trouble recently with its classic US-style "Solitaire House "protagonist Kevin Sapcey faces several allegations of sexual harassment, and they may therefore interrupt their relationship with the 'Big Ca'.
Now, it seems everything is becoming more and more 'expensive.' There is news that Amazon is making original content, and Apple and Facebook have to enter the two giants of content production.HBO is still the industry can not be ignored ' In addition, AMC also occupy a certain market share of the 21st century, Fox, Disney, Comcast and Time Warner have jointly invested in video streaming media set-top box service provider Hulu company.
The era of cheap content will be the past
Whether it's original content, old-style programming and movie content, Netflix is further enriching its content to give subscribers more and more choices.
Jim Nail, an industry analyst at Forrester, a well-known market analyst, said: 'The era of cheap content is coming to an end, and many content-production companies are demanding Netflix a huge royalty charge.'
Of course, investors are still very bullish on Netflix, which has risen 62% to a record high this year, while some traditional media companies are also aggressively wrestling with these startups.
A.B. Mendez, an analyst with Frost Investment Advisors' investment advisory firm, said: 'Consolidation is often the infirm, and real companies provide what people want whenever they want.'