Disney's Impact On The Entertainment Industry Over 21st Century Fox

Two days ago, it was reported that 21st Century Fox has held talks to sell most of the company to Walt Disney Company. In addition to the movie studio, TV production and international assets such as Star and Sky, Disney would also add entertainment networks such as FX and National Geographic. Now while most people who heard this news only celebrated the idea that X-Men characters would finally become a part of the MCU, I was far more concerned with how this deal could impact the entertainment industry on a long-term bias. Disney is king when it comes to their properties and their standing in the business. Owning Marvel and Star Wars is only the tip of the iceberg of Disney’s power and reach in the entertainment business but is Disney gaining,

Disney currently owns the following properties: Marvel Entertainment & Studios, Lucasfilm, ESPN Inc., ABC Entertainment, Pixar, A&E Entertainment, and 30% of Hulu. Trust me this is only scratching the surface and I didn’t even mention the Themeparks and their own library and properties. So what would happen if Disney took over 21st Century Fox? They wouldn’t be a monopoly overnight but it would raise a serious discussion. The rumored deal would include 21st Century Fox’s cable networks, its film and TV studios, Foxtel the Australian outlet, Sky, an enormous British pay-TV company, as well as a controlling interest in Hulu (The deal would give Disney 60% ownership of the streaming

As Disney gains more control of Hollywood film properties, the more power they will gain to shove their weight around and make things more difficult for theaters showing their movies…which they are already doing. According to the Wall Street Journal, Several cinema owners have voiced their grievance with Disney, who are said to have given theatres strict rules on how the movie is shown, and how much of the revenue will go to Disney. The list of demands includes Disney receiving 65% of revenue from ticket sales, the highest percentage a Hollywood studio has ever demanded. They will force theaters to screen the film in their largest auditorium for at least four weeks. The WSJ has also reported that if a theatre were to break these rules, they will also have to fork out an extra 5% of ticket revenue, bringing the total to 70%. Now with Disney being the big dog in town, can you imagine the demands that they can make with even more control of the film industry and more titles that will have to be negotiated with them to