It is official, the world woke up to the announcement that Disney has confirmed its acquisition of the 21st Century Fox’s entertainment assets for $52.4 billion this morning. This is a huge move on the part of Disney who also confirmed plans to add its own online streaming service earlier this year, Disney also announced it would no longer stream its massive video library on Netflix service after the end of 2018.
The War For Viewers Has Just Begun
Video is hot! Every major brand, publisher, social media platform, and teleco are all jumping into the space with both feet. Video has become accessible EVERYWHERE, from smartphones, tablets and televisions, and of course this means consumers are able to consume the content they want instead of the traditional way where telecommunications companies made us pay monthly fees for bundled packages. Over the next year we will see more options for video content.
Bell, Rogers And TELUS Will Feel Impact Of Disney Deal
After news of the acquisition hit the streets, shares of Netflix were trading up 2.37% at $192.38. However here in Canada it was a different picture for Canada’s three largest telecommunications companies. Bell Canada was down $0.44 ($61.64 CAD); Rogers was down $0.01 ($65.04 CAD) and TELUS also down by $0.58 ($48.02 CAD). When the Disney service does become available for Canadians this will be bad news for the trio of Bell, Rogers and TELUS as it will be more competition as they struggle to find their place on consumer’s screens.