Disney's latest acquisition, 21st Century Fox, isn't just a new company they've bought.
A report from CNN says that Disney stands to gain more than just Fox's sizeable assets which include FX, National Geographic, Star TV, Hulu, and Sky. Disney will also gain access to a big part of the network's market, which includes a large part of India. Disney will open its doors to about 700 million people in the country, most of which subscribe to Star India, Fox's subsidiary in the region.
If that isn't reason enough for Disney to rejoice, they also stand to receive Hotstar. Hotstar is a streaming service that accounts for about 75 million active viewers and subscribers in India. To show how big of an amount that is, Amazon's Prime Video had 11 million viewers and Netflix only managed 5 million viewers in India at the end of last year.
A 'Monopoly' In Entertainment
The specifics of the deal states that Fox instigated the deal to shed off what it said was 'deadweight;' an accumulation of entertainment brands that it couldn't handle anymore as it shifts direction. According to The Verge, Fox will retain the Fox broadcast network, Fox Business, Fox News, and Fox Sports as it focuses on what it deems a more profitable side.
Disney, for their part, gains hold of a few items of strategic importance. Marvel Studios can finally produce new, better stories as the X-Men and Fantastic Four franchises are officially Disney licensed franchises. Another cinematic universe that stands to gain is the Star Wars Universe. Originally owned by Fox, now Disney also holds distribution rights (in perpetuity) to the one that started it All-Star Wars Episode IV: A New Hope.
Opening The Door to Mobile Users
The mobile market is a fast-rising market and in India alone, 90 percent of viewers tuned in to Hotstar's videos. This means that Disney, through Fox Entertainment, stands to reach a broader audience through the streaming service.
Disney and Fox have yet to finalize the deal. Fox shareholders still have a say in the dealings and there are also other latecomers to the party; minority holder Comcast can still disrupt the proceedings by making another counteroffer, but so far, Fox remains Disney's network to lose.
