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Disney-Fox M&A won’t be a threat for Netflix, says Evercore 22 December 2017

Disney’s recent acquisition of Fox assets has created worries in the industry that Netflix Inc. will be overtaken by Walt Disney Co. in terms of market share. Analysts at Evercore said that Disney spending over $50 billion to include 21st Century Fox Inc.’s entertainment assets in its streaming service are overblown.

Lead analyst Anthony DiClemente estimates that Disney and Fox would combinedly spend more than $11.5 billion next year on content, excluding sports and film, which is approximately four times what Netflix would. But DiClemente said that there are factors working in favor of Netflix that should clear the air.

Although the Disney-Fox tie-up would likely increase content costs, DiClemente wrote that competition only validates the market and likely drives more subscribers to online TV services.

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