The acquisition deal could be a signal of major shift in the online streaming industry
Online streaming giant Netflix Inc. (NASDAQ:NFLX) came under the limelight recently after a report that Disney was interested in acquiring it. The speculations seem to be convincing after AT&T’s acquisition of Time Warner, and if rumors turn out to be true, this could be signal a major shift in the online streaming industry.
With Pixar, StarWars and Marvel added to its in-house studio, the House of Mouse, Disney, is the only brand that cannot be tumbled at the moment. As per the report, the main reason for Disney’s interest in Netflix is AT&T’s acquisition of Time Warner, and a fall in the subscription of ESPN. Furthermore, several rumors have been swirling around in the tech space that Bob Iger, Disney’s CEO is planning to retire by next year with Reed Hasting, CEO of Netflix, slated to succeed him.
Netflix is currently facing fierce competition from its main rival, Amazon. Over the past few months, Netflix has made many efforts to acquire a competitive edge over Amazon. For instance, the company is planning to roll out an offline mode feature in a bid to allow users to download content from its platform. However, it is worth noting that Amazon, the online retail giant, is already offering this feature to its users.
Netflix crushed analyst expectations by releasing its Q3 earnings and announcing that it had experienced a growth in international subscribers. However, many industry experts believe that Netflix is facing long-term existential business challenges and ultimately needs a buyer. In any case, it is important to note that the information mentioned above is based solely on speculations. Hence, readers are advised to use the information with caution, with more concrete information expected to emerge soon.
Interestingly enough, the acquisition deal will also open up the possibility that the online streaming giant will only offer exclusive Disney content. Also, Netflix already offer Disney content thanks to Marvel series such as Luke Cage, Jessica Jones, Daredevil and The Defenders. Many industry experts believe that if Disney bought Netflix’s streaming service, it will certainly help the online streaming giant to generate revenue from multiple sources such as AT&T, Verizon, Google and Apple. Adding to that, the deal will also benefit Disney as it will help the House of Mouse to gain access to Netflix’s valuable streaming platform.
The acquisition deal is considered to be an opportune time, considering the fact that Disney’s existing CEO, Bob Iger, is planning to retire in 2018. The company currently has not candidate to take the place of Mr. Iger and it’s quite possible that the House of Mouse is eyeing Netflix CEO Reed Hastings for the job. However, it is important to note that the information mentioned above is based solely on speculations. Therefore, readers are advised to use the information as a pinch of salt, and more concrete information is expected to emerge soon.