Comcast Partners With NetFlix

[UniversalCityFL]

What this does though is take Comcast one step closer to a usable VOD platform. Which is something Disney has been fighting tooth and nail.

I wouldn't personally agree that Disney has been fighting that tooth and nail -- Disney (Iger, specifically) has stated on some earning calls that Disney is in the content business, not the distribution business [at least in the US]... and has found that their investment in Hulu and Netflix have proven to make sense in specific circumstances (e.g. familiarizing people with an IP beyond its initial theatrical/television run).

Disney's publically stated approach is content, content, content and is relying on continuing to produce high-quality content that the distributors (MVPDs, streaming, etc.) are willing to pay for.

 

[GadgetGuru]

I'm gonna call it right now: Comcast will buy out Netflix in the next 3-5 years. All of the media companies are getting into the distribution business or distribution companies are getting into the media business (see: Verizon). Disney has proven lately that they insist on going their own way with tech matters. They built their own digital download service (Keychest / Disney Movies Anywhere) instead of using the one EVERYBODY else is (Flixster / Ultraviolet). They're building their own streaming service in Europe that will probably reach the USA when the Netflix deal is over (the deal was weirdly signed years ago, way before Netflix became a behemoth). Clearly, they're out. That only leaves Comcast as a potential buyer with enough capital. You can remove all of the other tech companies (Google, Apple, the like) because they're tech companies. They have their own services that compete with Netflix and they won't want to pay for Netflix's user base (that's all they get).

Why should we care? This will be one of the biggest media buys in history. On the scale of Time Warner + AOL. LinkedIn set a precedence for 50% margins on tech buyouts. At current prices, thats $60B for Netflix, and Netflix is low right now. If the buyout were to go badly (cough AOL + Time Warner cough), Comcast's books will be wrecked. The parks will face massive cuts as will everything else.

 

[bob albert]

Lol Comcast isn't going to buy netflix, although they may try. Netflix has nothing but growth ahead. Comcast has the weight of cable

 

[UniversalCityFL]

Lol Comcast isn't going to buy netflix, although they may try. Netflix has nothing but growth ahead. Comcast has the weight of cable

...those are the exact reasons why an aqusition would be valuable to a company like Comcast.

 

[Nick]

I would argue if anyone is going to buy Netflix it'll be Google. Netflix hurts YouTube which is why it would make sense for a buy.

 

[graspthesun]

The problem with Comcast buying Netflix would be an anti-trust matter regarding their stake in Hulu. If we see Comcast divest Hulu, then I'd go ahead and buy some Netflix stock pronto in anticipation.

Could someone with a little more knowledge on this tell me if Comcast is barred by their NBCUniversal merger agreement from buying out Fox and Disney's shares in Hulu or are they just required to be silent partners with their current stock.

This brings me to another thought. If Comcast and Disney are partnering with Netflix, is this going to lead to the death of Hulu? None of the owners seem interested in keeping content exclusive with their own partially owned company.

 

[Mad Dog]

If I remember correctly, there were provisions concerning Hulu that had to be guaranteed for the Comcast Universal deal to be approved by the government.

 

[Disneyhead]

The whole media industry has become an inbreed mess.

 

[quinnmac000]

The problem with Comcast buying Netflix would be an anti-trust matter regarding their stake in Hulu. If we see Comcast divest Hulu, then I'd go ahead and buy some Netflix stock pronto in anticipation.

Could someone with a little more knowledge on this tell me if Comcast is barred by their NBCUniversal merger agreement from buying out Fox and Disney's shares in Hulu or are they just required to be silent partners with their current stock.

This brings me to another thought. If Comcast and Disney are partnering with Netflix, is this going to lead to the death of Hulu? None of the owners seem interested in keeping content exclusive with their own partially owned company.

Just required to be silent as there was fear Comcast would essentially cause it to destroy itself due to the fact its direct competition to cable.

 

[Macfr3ak]

Just required to be silent as there was fear Comcast would essentially cause it to destroy itself due to the fact its direct competition to cable.

Comcast has made various public comments concerning video streaming such as netflix and sling tv in the past as i would think they fear it affects cable the most as many of these services market themselves as "cable cutters" dont be surprised if Comcast makes a big move soon on a streaming service (Likely not Netflix due to the cost but mayeb redbox) but they definitely dont want to be left behind on the cutting edge side of things.

they've shown signs of interest with making fandango a player in this market. The way i see it is if they turn fandango into something more of a failed Netflix competitor they might just end up hurting fandango more than it would help.. (fandango is owned by NBCUniversal for those unaware)

 

[IzzyB]

I see this move more against devices like Tivo than having anything to do with sticking it to Disney.