A Fox Deal Would Test Disney
- 6 years ago
A Fox Deal Would Test Disney
But adding Fox’s regional sports channels would expose Disney even more to the rising cost of media rights — expected to increase nearly 6 percent to $20 billion in North America alone, according to PwC —
and the overall drop in ratings for some franchises like the NFL.
Fox peddles edgier programs with series like the blood-spattered “The Americans” and the raunchy “It’s Always Sunny in Philadelphia.”
Disney’s cable outlet ESPN is one of the most popular networks in the United States, yet subscribers are declining.
Netflix’s success as a streaming service in gathering 100 million global subscribers — coupled with
its heavy spending, up to $8 billion next year, on content — is driving rivals into big deals.
If scale is coin of the realm in media, then it is easy to see why Mr. Iger might be eager to bulk up with 21st Century Fox’s TV shows and films.
The $160 billion media conglomerate is close to striking a deal to acquire parts of Rupert Murdoch’s Fox empire, pegged at $60 billion by CNBC.
But adding Fox’s regional sports channels would expose Disney even more to the rising cost of media rights — expected to increase nearly 6 percent to $20 billion in North America alone, according to PwC —
and the overall drop in ratings for some franchises like the NFL.
Fox peddles edgier programs with series like the blood-spattered “The Americans” and the raunchy “It’s Always Sunny in Philadelphia.”
Disney’s cable outlet ESPN is one of the most popular networks in the United States, yet subscribers are declining.
Netflix’s success as a streaming service in gathering 100 million global subscribers — coupled with
its heavy spending, up to $8 billion next year, on content — is driving rivals into big deals.
If scale is coin of the realm in media, then it is easy to see why Mr. Iger might be eager to bulk up with 21st Century Fox’s TV shows and films.
The $160 billion media conglomerate is close to striking a deal to acquire parts of Rupert Murdoch’s Fox empire, pegged at $60 billion by CNBC.