Disney is not the evil Empire, they are the Rebellion

With the purchase of Fox, Disney is not spelling the end to creativity through a near monopoly. In fact, it will transform media as we know it today.

Sounds counterintuitive, right?

A major media corporation buying up one of the major media corporations outside of Sony, Comcast, Time Warner, and Viacom. So as you can see the former “big six” as they are called will now be five.

So what do I mean when I say it will transform media?

Well let’s go through what Disney has planned outside of the Fox move

• Streaming

Disney is set set to launch their streaming service in 2019. In November they claimed it will not be a “Netflix killer.” Now a standalone service in early 2018 for ESPN will finally take steps to moving away from cable services. Disney has been publicly stating this because Netflix is currently a content partner for the next few years.

• Walt Disney World 50th Anniversary

2021 marks a major anniversary for the company: the 50th anniversary of Walt Disney World. By this point you are going to have Star Wars: Galaxy’s Edge in full swing, most likely a Star Wars themed hotel, gondolas crossing the sky, any many more attractions. This is important as this will be a major draw to the parks over the next 3 years and major capital investments over that span.

• Movie series expansion

You have the final installment in Disney’s new Star Wars trilogy ramping up in 2019. Rian Johnson, director of The Last Jedi, has been announced to be doing a brand new trilogy outside of the current characters. In Disney’s other major division, Marvel is ramping up their conclusion to the current team of Avengers with Infinity War and its sequel. No film has yet to be announced to be in the “4th phase” of Marvel’s Cinematic Universe which takes place post sequel to Infinity War. Disney also continues on the money train of live action versions to their ever popular animated movies with The Lion King, Aladdin, and Mulan.

So this is what Disney’s brand wants to be:

Streaming content, theme park and movie production company

No surprise there, however with the Fox purchase, they will have to lean out to get there.

1. Get rid of TV. Both Fox and Disney have a lot of TV stations, and I mean a lot. Disney here can consolidate sports under the ESPN umbrella since it is a more recognized brand name than Fox Sports. Disney/Fox channel content to streaming. Channels themselves, it is just like real estate, start selling those off as soon as possible. The remainder after Disney moves to streaming might just be closed, other than local Fox/ABC stations which broadcast rights could go to another one of the “big six.
2. Film library consolidation. With the purchase, this will lean out what Disney will put out in terms of content. Disney is a company that prides on quality and not quantity. If they know they can put out quality films once or twice a month, they will stick to that. This deal does not mean they double their output, they will lean out.

So why did I say this will revolutionize rather than make Disney the evil empire?

Disney isn’t buying Fox for the need to control channels, it is a content move and a very small part in getting rid of a competitor. Disney wanted Fox’s library to put on their streaming services and a little bit to release in theaters (Marvel). So this isn’t Disney trying to control all the movies in the theater, it is a brand move for them to solidify the risky moves they are making for the future.

Ironically this opens the door for more independent or smaller companies to come in and push forward in the News outlets, the potential cable channels that will become available, and the content that Disney will remove from the consolidation move, so if Fox content overlaps with Disney’s, they will get rid of it. I am looking at how Dreamworks Animation has done fairly well in the last few years versus Disney/Pixar and Disney Animation. So example Blue Sky Studios is Fox’s Animation house, Disney will just absorb that and put them under Pixar. This will open the door for indies to come through.

The streaming move is also a risk and this purchase shows Disney is nervous about its content. Netflix already a big independent operator in that space and Amazon (which I consider independent over the Big Six) are pushing through at an insane rate to push out quality content and they are doing it well. So this space will be extremely competitive and that’s great for consumers and content producers as they can demand money.

So as you can see this isn’t a big fish swallowing up some big fish to become this ugly monopoly, contrary Disney is looking for specific items and will cut out the rest and those that pick up the scraps or seize the opportunities will keep the entertainment space alive and well. Disney has a different idea of branding than the rest of the Big Six, this is why they can transform this space and not doing it by killing off competition.