by Ray Keating
Commentary/Analysis
DisneyBizJournal.com
May 10, 2024
It’s always fascinating to see a market, or a service or technological development in the marketplace, change in unanticipated ways. One minute, everyone is an expert on what’s going to happen not just tomorrow, but years down the road – and then: BAM! Entrepreneurs, consumers and/or just unanticipated developments dispense some market humility.
As an economist, this is what I expect, i.e., expect the unexpected.
So, seeing the streaming field change in unexpected ways is fascinating. And Disney is at the center of much of this. Remember, streaming was supposed to be about content or intellectual property (IP) camps or silos. Disney has a formidable library of content, so it can take on Netflix, et al. And while that’s still part of the story, things have changed rather notably in terms of streamers being willing to work together when they think it makes sense, including licensing content to each other. Indeed, free enterprise isn’t just about competition, but it’s also about cooperation within a competitive framework.
So, we saw a proposed sports streaming venture between Disney, Warner Bros. Discovery and Fox announced in February of this year.
And now Disney and Warner have announced a streaming bundle that includes Disney+, Hulu and Max. The companies say it will be available this summer in the U.S.
As described in the Disney release, this streaming bundle will provide “subscribers with the best value in entertainment and an unprecedented selection of content from the biggest and most beloved brands in entertainment including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Warner Bros., and many more.” This triple bundle will be available for purchase on any of the three streaming services websites, and with or without ads.
Like the sports offering, which reportedly is due in the fall, this will be a fascinating test in two ways. First, how will consumers react? Will this add subscribers, or will it be more a case of existing customers rearranging their subscriptions to get the best deals possible? Exactly how nice will Disney and Warner play together?
Second, how will regulators react? During this time antitrust activism – i.e., government officials’ assuming bigger is automatically bad – on both sides of the political aisle, it can’t be assumed that these joint ventures will easily pass regulatory muster. And that scrutiny will start with the likes of hyper-activist Lina Khan, the head of the Federal Trade Commission, as well as competitors in the marketplace bringing antitrust lawsuits to gum matters up for the likes of Disney and Warner. Heck, that’s already happening with the sports streaming joint venture proposal, as noted by DisneyBizJournal.
Yes, free enterprise will surprise you. Self-proclaimed experts would be wise to keep that in mind, as would, by the way, those government regulators who make decisions about joint ventures and mergers thinking that they, too, know the future. Trust me, if the people that work in, follow, and invest in these industries can be surprised, politicians and their appointees don’t have a clue.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
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• The Pastor Stephen Grant thrillers and mysteries. There are 19 books in the series now.
• Cathedral: An Alliance of Saint Michael Novel is at Amazon.
• Order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
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