By : Hansen Naidoo
Technology companies are changing the global media industry and traditional media companies are trying different strategies to try and secure there uncertain future. The Fox and Disney news circulating around a possible deal is said to be in advanced talks. The two content powerhouses face many challenges in the near future and Fox looks at Disney as a good fit for its entertainment assets. What surprised the business world was that Rupert Murdoch is actually keen on selling his beloved media assets.
Media distribution is changing, but that distribution needs content, not user generated content but premium content. The threat from technology companies like Netflix, Amazon, Apple, Google and Facebook is the different business models and distribution type and large scale that they are using. Netflix will spend $8 billion on original content this year and Apple has committed $1 billion to original content. As consumers cut the cord and go less to shopping malls (thanks to Amazon) and therefore watch less movies, the mobile devices
Disney with Fox entertainment assets under its wing would give more power to compete with the likes of Netflix and Amazon. Disney's acquisition of Bamtech allows it to create its own direct to consumer streaming service but if the deal goes through it will also take controlling interest over Hulu. Reports state that the deal could be announced next week.