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.

 

__________

 

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.

Movie Date Night at a Disney-Owned Movie Theater?

by Ray Keating

Analysis

DisneyBizJournal.com

November 20, 2019

What about heading to a movie theater owned by the Walt Disney Company, or for that matter, by Paramount or Sony? Well, it’s a possibility.

For people who are unaware, movie studios are barred from owning movie theaters due to a Supreme Court decision in 1948 that agreed with the government, and separated movie production and distribution. A subsequent series of decrees – known as the Paramount decrees – barred movie studios from owning movie theaters.

Such government intrusion into the entertainment marketplace made little sense at the time, and given myriad choices for consumers today, make no sense whatsoever in the 21^stCentury.

Apparently, according to a report from Variety, government thinking might finally be catching up to market realities. 

On November 18, Variety noted: “The Department of Justice will seek to end the Paramount consent decrees, the landmark agreements that have barred studios from owning theaters for the last 70 years.” In a November 18^th speech, Makan Delrahim, who heads up the DoJ’s antitrust division, “argued that the decrees are a relic of the past, as the old studio system has long since expired.” He was quoted: “We have determined that the decrees, as they are, no longer serve the public interest, because the horizontal conspiracy — the original violation animating the decrees — has been stopped. The Division finds the consent decrees no longer meet consumer interests.” 

Delrahim also noted, “We cannot pretend that the business of film distribution and exhibition remains the same as it was 80 years ago.” Well, there’s a crazy idea.

Much lies ahead in terms of making this happen, including lobbying from opponents and getting courts to end the decrees, but the process has started. Heading to the Disney Movie Theater might not be that far off.

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.