What Disney's Acquisition of 21st Century Fox Could Mean for Streaming Services

A problem for Netflix could be a blessing for Hulu

Thursday’s bombshell announcement that Disney will be be acquiring 21st Century Fox’s U.S. and global entertainment assets sent shock waves through the entertainment industry.

The deal is an all-stock transaction that allows Disney to obtain Twentieth Century Fox movie and TV studios; the company’s cable entertainment networks; including FX and National Geographic; international assets like Star and Sky; and its stake in Hulu for a cool $52.4 billion.

But what will it mean for the TV advertising industry? At least one industry expert believes the deal bodes well for Disney’s direct-to-consumer prospects.

“Disney realizes that in order for them to truly compete against their competitors, namely Netflix, they need to dial up their premium content offering,” said VideoAmp chief strategy officer Jay Prasad, adding that “Fox, to [its] credit, has done a great job with properly packaging cross-screen content and negotiating distribution deals.”

Disney’s

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