Yahoo Finance Media War for Streaming Heats Up: Fox & Comcast Bid for Sky
Internet streaming has gained a strong foothold in recent times, thanks to the world’s insatiable appetite for on-demand, video streaming service. This demand is changing the media landscape pretty fast, making it increasingly difficult for some leading entertainment giants to offer relevant services that may help them stay afloat.
American consumers are increasingly mesmerized by the world of streaming media, getting rid of their cable connections to subscribe to Internet streaming entertainment providers like Netflix NFLX, Hulu and Amazon AMZN. The online TV market is growing without boundaries, with new initiatives such as Netflix Originals and Apple’s AAPL development of cloud-based online video facilities.
High Internet speed makes streaming easier and gives an edge to video quality, an option that is now readily available to Americans. As people spend more time on their smart devices instead of watching television in their living rooms, it’s only apparent that they seek resources online that play their favorite shows anywhere, anytime.
Streaming Business Acquisitions Changing Media Proposition
The transatlantic bidding war between Comcast CMCSA and Twenty-First Century Fox FOXA to gain control over British Sky Broadcasting Group PLC SKYAY displays the fierce competition that the Internet streaming technology has introduced in recent years.
Along with reaching Sky’s 23 million customers in the European subcontinent, the winner will gain access to the company’s streaming technology and European pay-TV assets.
Disney plans to buy Fox for $71.3 billion in a stock-cum-cash, per a CNBC report. Fox already owns a 39% stake in Sky, which Disney will have access to once it buys Fox. If Fox wins in the bidding for Sky, Disney will gain full control over the British broadcaster. The Disney-Fox agreement also gives Disney access to Hulu, Netflix’s major rival.
Media Tug-of-War Over Streaming to Continue
Streaming infrastructure is growing rapidly because of private networks owned by tech giants such as Facebook FB, Google GOOGL, Netflix and Apple, which allow viewers to watch uninterrupted digital videos.
The gradual shift in consumers’ preference from cable TV subscriptions to video streaming on their portable devices might lead to a fiercer media fight.
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
British Sky Broadcasting Group PLC (SKYAY) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Twenty-First Century Fox, Inc. (FOXA) : Free Stock Analysis Report
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