Is the Disney-Fox Merger good for consumers?

It will boost competition, a plus for viewers

The deal will restrict Disney’s content

 Getty Images: Brenda Chase

Disney's recent agreement to buy most of 21st Century Fox’s assets for $52.4 billion is good for consumers as it will boost competition in online streaming, asserts Ryan Radia of the Competitive Enterprise Institute. Given that consumers are increasingly turning to online video programming instead of movie theaters, Disney and Fox have been hurting at the box office because of stiff competition from streaming platforms Netflix and Amazon. A merged Disney and Fox would not only have a controlling interest in streaming TV service Hulu but would be able to cut its film distribution and production costs, thereby allowing it to focus on creating better streaming content for viewers.    

Keep on reading at Competitive Enterprise Institute

If the Department of Justice allows the deal between Disney and 21st Century Fox to go through, consumers should be worried about a future of fewer choices of diverse content, according to states Joe Nocera of Bloomberg. This is likely to happen because Disney, who is trying to protect its future against growing competition from online streaming platforms, is way behind the likes of Netflix and Amazon with regard to original content and streaming technology, and will be hard-pressed to catch up. Plus, in addition to Fox’s movie studio, Disney is also buying its cable channels, like FX, among others, but not currently planning to stream any of their content, which means limited online content for future viewers.

Keep on reading at Bloomberg
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