Disney and Warner Brothers Team Up on Streaming

 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?

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Never miss any new book by Ray Keating by joining the Pastor Stephen Grant Fellowship with Ray Keating at

https://www.patreon.com/pastorstephengrantfellowship.

 

Various books by Ray Keating…

 

• 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.

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Disney’s Joint Sports Streaming Venture Being Examined by Antitrust Regulators

 by Ray Keating

News/Analysis

DisneyBizJournal.com

February 16, 2024

 

“Big is necessarily bad” has been the mantra among antitrust regulators in Washington, D.C., for two consecutive presidential administrations now. And there has been plenty of anti-big business rhetoric flying from Congress as well.

That’s why when Disney-ESPN, Warner Bros. Discovery and Fox announced a joint sports streaming venture, DisneyBizJournal noted, “But one has to wonder if this type of joint venture will attract attention from Washington’s antitrust activist regulators.”

 

As noted in the press release from Disney, “The platform would aggregate content to offer fans an extensive, dynamic lineup of sports content, aiming to provide a new and differentiated experience to serve sports fans, particularly those outside of the traditional pay TV bundle. By subscribing to this focused, all-in-one premier sports service, fans would have access to the linear sports networks including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+.”

 

Well, guess what? Antitrust regulators are looking at this proposed joint venture.  

 

Reuters reported, “The U.S. Department of Justice aims to scrutinize a sports streaming platform planned by Walt Disney, Fox, and Warner Bros Discovery, over concerns it could harm consumers, sports leagues and rivals, Bloomberg Law reported on Thursday.”

 

As is almost always the case, it’s not consumers who are raising issues with government regulators, but instead, it’s about competitors in the marketplace who don’t like the proposed deal. It was noted by Reuters: “Fubo, a sports-focused streaming service, called for scrutiny of the new joint venture shortly after it was announced. In a Feb. 7 statement, Fubo said the media partners command ‘significant market share,’ reportedly controlling 60% to 85% of all sports content.” 

 

Hmmm, that’s a pretty wide margin, and it’s not clear how Fubo came to those percentages. Plus, antitrust is supposed to be about monopolies. A monopoly means one supplier, no close substitutes for the product, and high barriers to entry. That definition doesn’t fit this situation. But, again, D.C. regulators have adopted very expansive, activist views to the point that their actions aren’t really guided by a monopoly, or the threat of one; but instead, they’re guided by “bigness.”

 

Indeed, antitrust is supposed to be about protecting consumers. But consumers will decide if they like this joint venture or not. Indeed, that’s how markets work.

 

Nonetheless, regulators often have a different take, and we’ll see how this proposed joint sports streaming venture goes with the government.

 

__________

 

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?

 

Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Consider other books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Pre-order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist. Signed books here and Kindle editions here.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Signed books here.  And Kindle and paperback editions here.

 

• The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Lots of Disney News Heading Into the Earnings Calls

 by Ray Keating

News/Analysis

DisneyBizJournal.com

February 6, 2024

 

Heading into the company’s February 7 earnings call, there’s plenty of news swirling around the Walt Disney Company.

 

First, another big-time activist investor group – Blackwells Capital – is tossing board nominees into the ring for the April 3 shareholder meeting. Blackwells wants to expand the number of board seats, and is talking about the possibility of breaking up Disney into three public companies, according to Reuters. Does anyone else detect an early-1980s vibe here, given Disney’s recent terrible stock performance?

 

This, of course, in addition to Nelson Peltz's Trian Fund Management effort to replace Disney board members.

Second, news broke on February 6 that ESPN, Fox and Warner Brothers are going to team up to establish a mega-sports streaming service. Each company would own a one-third share of the joint venture. According to the press release from Disney, “The platform would aggregate content to offer fans an extensive, dynamic lineup of sports content, aiming to provide a new and differentiated experience to serve sports fans, particularly those outside of the traditional pay TV bundle. By subscribing to this focused, all-in-one premier sports service, fans would have access to the linear sports networks including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+.”

 

Disney CEO Bob Iger said, “The launch of this new streaming sports service is a significant moment for Disney and ESPN, a major win for sports fans, and an important step forward for the media business. This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other industry leaders as part of a differentiated sports-centric service.”

 

Pricing and other details will be forthcoming. 

 

But one has to wonder if this type of joint venture will attract attention from Washington’s antitrust activist regulators.

 

Third, Gina Carano is back. But not in The Mandalorian. She’s in the courtroom, and Elon Musk is at her side. Carano is suing Disney for her firing from the streaming show, and Musk’s company X is funding the lawsuit, according to CNBC. As reported by CNBC: “The suit, which alleges wrongful discharge and sex discrimination, seeks Carano’s reinstatement in ‘The Mandalorian,’ and monetary damages for the loss of her past pay and her future employment as a result of her termination. Carano was booted from the series after she shared a post on Instagram and TikTok that implied conservatives in the U.S. were being treated like Jewish people in Nazi Germany.”

 

Finally, Disney has brought in a big thinker to help people with their board votes – Professor Ludwig Von Drake. The Hollywood Reporter noted: “The media and entertainment giant released an animated video Monday urging shareholders to vote, but only for the company’s preferred board members. The Austrian duck, who is uncle to Donald and an expert on many subjects in the Disney universe, guides the shareholders through the voting process that kicks off ahead of the April 3 shareholder meeting.”

 

__________

 

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?

 

Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Consider other books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Pre-order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist. Signed books here and Kindle editions here.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Signed books here.  And Kindle and paperback editions here.

 

• The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Is Superhero Movies Poll a Concern?

 by Ray Keating

Analysis

DisneyBizJournal.com

August 6, 2022

 

Disney continues to go all in on Marvel superhero movies, with Kevin Feige recently announcing Phases 5 and 6 of the Marvel Cinematic Universe (MCU). For good measure, Warner Bros. Discovery, amidst controversy over its cancellation of Batgirl, is pointing to a 10-year DC superheroes plan.

At the same time, Morning Consult released a poll of American adults on whether or not they enjoy superhero movies. The title of the survey piece was “Superhero Film Fatigue Is Up From Last Year — Even Among Marvel Fans,” and it naturally grabbed online attention. But what are the key points from this poll?

 

First, in July 2022, 59 percent of adults said they enjoyed superhero movies, compared to 64 percent in November 2021. Those that do not enjoy superhero movies went from 36 percent in November 2021 to 41 percent in July 2022.

 

Second, among Marvel fans, those who enjoy superhero movies declined from 87 percent in November to 82 percent in July, and those saying they do not went from 13 percent in November to 18 percent in July.

 

Third, while this move in a negative direction warrants watching, it also must be noted that the poll has a margin of error of +/-2 percentage points. That means that each poll percentage can be as much as two points higher or lower. So, the changes in survey results between November and July just barely lie outside the margin of error, meaning that the relatively small changes cited might actually be even smaller.

 

Fourth, Gen Z adults were the only age group that had a larger share saying that they enjoyed superhero movies, going from 47 percent in November to 53 percent in July.

 

So, what can we really take away from these results? Even with a small move down between November and July, superhero movies remain highly popular with the public. However, no one in the superhero movie business should simply rest easy with these results. 

 

But I doubt that the slight move down in polling is about so-called “superhero film fatigue.” Instead, it has to do with the quality of movies. After Avengers: Endgame in 2019, the Marvel movies have fallen off notably in quality. 

 

The best of the lot were thanks to Sony’s Spider-Man films - Spider-Man: Far From Home (2019) and Spider-Man: No Way Home (2021) – and Doctor Strange in the Multiverse of Madness (2022) in the directorial hands of Sam Raimi. The other four movies – Black Widow (2021), Shang-Chi and the Legend of the Ten Rings (2021), Eternals (2021), and Thor: Love and Thunder (2022) – ranked as middling to simply bad.

 

It also should be noted that other than Loki, the MCU streaming shows on Disney+ have not exactly been “wowing” many.

 

In general, movie-goers don’t suffer genre fatigue. Instead, they grow fatigued with uninteresting, forgettable, poor quality movies. That’s the lesson for Disney, Warner Bros. Discovery, and anyone else in the superhero movie game – indeed, in the movie game in general.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and 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?

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Get all of Ray Keating Pastor Stephen Grant thrillers and mysteries in paperback and for the Kindle at Amazon.com and signed books at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.