Internet TV Network Netflix (NFLX) has become so big in video streaming that it would take a company with deep resources to run for their money.
Enter the merger that is rumored to be Walt Disney (DIS) and 21st Century Fox (FOXA) assets.
Disney is reportedly interested in acquiring certain entertainment assets of 21st Century Fox, including the Twentieth Century Fox film studio, cable FX networks and National Geographic, as well as Fox's participation in Sky, based in the United Kingdom, and Star TV, from India. Fox would maintain its sports, news and broadcast networks, according to media reports.
CNBC said on Tuesday that a purchase agreement worth $ 60 billion could be announced as early as next week.
"The acquisition of Fox entertainment assets and a controlling stake in Hulu would make Disney a far more formidable and dangerous competitor in the future in the transmission," said GBH Insights analyst Daniel Ives in a report.
The addition of Fox's assets would create a "content-rich competitor" "For Netflix, when Disney is preparing to launch a consumer direct video service in 2019, Ives said.
" While there is Clearly great synergies around the box office / advertising combining the television and film studio businesses of Fox with the large amount of Disney entertainment assets, the main underlying driver of this agreement, in our opinion, is the impending battle for services of content and real-time transmission in front of the Netflix machine, "he said 659002] IBD & # 39; S TAKE: Netflix shares have an IBD composite rating of 85, which means they have exceeded 85% of the actions in the key metrics in the last 12 months For further analysis on Netflix, visit the IBD Stock Check
Netflix now competes with Amazon.com  59005] & # 39; s (AMZN) Amazon Prime Video, Time Warner & # 39; s (TWX) HBO and others in subscription videos on demand. Apple (AAPL) is also preparing to enter the market.
"With more consumer dollars moving away from the traditional wire-cut cable and towards the transmission delivery, we believe that Disney's strategic move to acquire them (Fox) would significantly reinforce its distribution / content services scheduled for 2019 and would place the company on the road as a major disrupter of streaming and gain market share if it runs successfully, "said Ives.
Netflix is the clear market leader in video streaming subscription. It ended the September quarter with 109.25 million broadcast subscribers worldwide, including 52.77 million in the US. UU And 56.48 million in international markets.
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Apple TV finally addresses the deficiency, adds Amazon Prime Video  The views and opinions expressed in this document are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.