There are mergers and consolidations to come, that's for sure, but it would make no sense for Disney to do a deal with Netflix.
Netflix is a pure play. Disney+ is part of a somewhat integrated business: streaming, theatre, toys, theme parks, cruises each advertise and reinforce each other. Everything they do is a cross sell. And though I don't personally enjoy most of their output, I see it as generally very high quality.
During COVID things got out of whack, with streaming being a significant, high-growth source of revenue while in-person revenue streams languished.
The right way to think of Disney streaming is (ultimately) a low cost way to scoop up residual revenues. They put a film in theatres and can do hundreds of millions, and even billions in revenue. Then stick it on streaming (marginal cost for subscribers and Disney: essentially $0). Take it off streaming, sell disks. Put back on streaming. Repeat.
The thing Disney and Netflix have in common is high quality software and deployment, head and shoulders above anyone else. But that's about it.
Netflix is a pure play. Disney+ is part of a somewhat integrated business: streaming, theatre, toys, theme parks, cruises each advertise and reinforce each other. Everything they do is a cross sell. And though I don't personally enjoy most of their output, I see it as generally very high quality.
During COVID things got out of whack, with streaming being a significant, high-growth source of revenue while in-person revenue streams languished.
The right way to think of Disney streaming is (ultimately) a low cost way to scoop up residual revenues. They put a film in theatres and can do hundreds of millions, and even billions in revenue. Then stick it on streaming (marginal cost for subscribers and Disney: essentially $0). Take it off streaming, sell disks. Put back on streaming. Repeat.
The thing Disney and Netflix have in common is high quality software and deployment, head and shoulders above anyone else. But that's about it.