& cplSiteName &

Forrester: Comcast/Disney Makes Sense

Light Reading
News Wire Feed
Light Reading

CAMBRIDGE, Mass. -- Yesterday, Comcast launched a $66 billion takeover bid for Disney. Without favoring Disney content, Comcast could use this move to jump-start VOD and shape the future of on-demand media.

While embattled Disney has rejected this takeover offer, we think this is a mistake.

Even more than weak ratings at ABC and pressure to cut fees at ESPN, Disney faces a long-term problem: As digital video recorders (DVRs) and video on-demand (VOD) take off, the power of networks will fade. Here's what Comcast - and networks - will do:

  • Comcast will not favor Disney content
    Just as with News Corp.'s takeover of DIRECTV, this merger won't pass regulatory muster unless Comcast promises not to favor Disney content. For networks like ABC, ESPN, and The Disney Channel, Comcast/Disney must offer the same content deals to its satellite competitors that it does to its cable brethren like Cox Communications. Comcast will argue that this deal is required in the era of News Corp./DIRECTV and AOL Time Warner and that it doesn't increase its TV distribution share.
  • Comcast will use Disney to jump-start VOD and broadband
    Despite its aggressive moves in VOD, Comcast has failed to get mainstream networks to offer popular content in VOD tiers. This would change. By including Disney content, ESPN sports events, and ABC network shows - with advertising - in its free VOD offering, Comcast could: 1) make VOD a popular destination, rivaling broadcast television, and 2) develop an advertising model that benefits both Comcast and its network content partners. Similarly, we expect Comcast's high-speed Internet offering to feature Disney content.
  • Other networks will eye distribution
    With Comcast owning Disney, Viacom looks vulnerable, despite its strong media properties. With cash generated from the planned Blockbuster sale, it could make a move for financially troubled operators Charter Communications and Adelphia Communications and their 12 million households. NBC, digesting Universal Studios, is more likely to cozy up to Comcast than plan a cable operator acquisition.

Forrester Research Inc.

Comcast Corp.

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Telecom Jargonosaurus Part 1: Repeat Offenders
Iain Morris, News Editor, 7/13/2018
AT&T's Stankey Serves Up a Stinker at HBO
Iain Morris, News Editor, 7/10/2018
Broadcom Buys CA – Huh?
Mitch Wagner, Executive Editor, Light Reading, 7/11/2018
FCC's Rosenworcel: US 'Falling Behind' on 5G
Iain Morris, News Editor, 7/13/2018
Verizon Taps Malady as Acting CTO
Dan Jones, Mobile Editor, 7/12/2018
Animals with Phones
Who Shrunk the Tech Support?! Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed