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What the entertainment media landscape will look like after Disney buys Fox

By Kag Katumba 31 Jul, 2018
Essential

Chart of the Day: How will Disney buying Fox assets affect their entertainment media?

In the coming months expect to see one of the biggest entertainment mergers in the history of...entertainment. Walt Disney Studios Inc (Buena Vista) is the powerhouse of the last two decades. In that time they have acquired the entirety of Marvel in 2009 ($4.24bn) and more recently put down the bucks for Lucasfilm in 2012($4bn). This might seem like a lot of money, it is, but it has taken them no time whatsoever to start paying them off.

In 2018, Marvel movies alone had grossed $14bn+ and as of December 2017, Disney had already made back the $4bn they paid for Lucasfilm in under 5 years. Their acquisition prowess is undeniable and the ROI speaks volumes. They have money to throw around with annual revenue sitting at $55bn and a company value of $150bn+. This chart shows the top-earning studios of 2017.

Now Disney has turned their sights to purchasing all of Fox's entertainment assets, as Rupert Murdoch lines up a purchase of BSkyB. This would significantly change the landscape of the entertainment industry, especially films. Last year, Fox and Disney collectively brought in roughly one-third of movie studio revenue. Between the two studios, they would own 7 out of the 10 of the highest grossing films of all time.

This is a marketing dream purchase for Disney as they would have a controlling share in all the largest film franchises that cinema has to offer, especially in the superhero genre. This doesn't just make them money through ticket sales but also through merchandise, games and their Disney theme parks. By purchasing such characters as Spiderman and X-men they are undoubtedly giving themselves a stronger standing in the genre that has total US box office gross of $19.5bn since 1978.

Source - Axios Media Trends 

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By Kag Katumba

I am the Marketing Executive at Smart Insights, heading up our Free Memberships and Content Partnerships. I've amassed 5 years of industry experience which keeps me on the pulse of all things marketing and digital. Feel free to connect with me at Linkedin

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