User blog comment:SonOfAres1/Phase Four/@comment-28688910-20170117231730

Hey, I gotta tell you something, Given Disney's buying spree will likely reshape Hollywood for years to come, Mark Hughes is recommending about what should happen if Disney found a way to save ESPN: Disney is having a remarkable year, on course for a record-setting $7.6 billion in global box office. One major key to this success has been acquring other companies with valuable IP and maximizing the growth and revenue potentials. Pixar, Marvel, And Lucasfilm all came into the Disney corporate fold, And all signs point toward the advisability of a couple of new big moves by Disney to further expand their holdings, build a bigger catalogue of new properties to explot, have their own platform for sharing content with the largest possible audeicne as directly as possible, and finding a way to rescue ESPN from a slide that continues to be the one small drag on the company's stock and performance overall. The solution to all of those needs is simple but immense: Disney should buy Netflix,Paramount and Sony.

Tall Order? You bet it is, And i'm not saying it would be cheap or easy to accomplish, nor that I think it's destined to transpire. But if any company is positioned to pull it off in order to reap the enormous benefits, it's Disney. Let's look at the reasons why-- including some you may not have considered-- To see why this bold, big move makes sense...

While Disney's film and merchandising have enjoyed enormous success, lately ESPN has suffered declining viewership. ESPN lost 11 million subscribers over the last 6-year period, including more than 600,000 in October of this year. Granted, The Nielsen ratings data doesn't account for SlingTV and Playstation Vue, Which also provide ESPN to Subscribers, but the data and trends all point toward a decline for ESPN in the face of cord-cutting, new competitors, And other obstacles now and in coming years. SInce ESPN is a major part of Disney's primary revenue stream (DIsney media Networks), It's going to be important to address these issues to boost the revenue stream, ease investors' fears, And improve Disney's stock valuation.

Without finding a option that provides a game-changing strategy, ESPN faces longterm trouble. Younger audeicnes increasingly care less for cable and rely more on multiple portable devices for viewing content. And inevitably, other sports viewing options will arise that provide streaming access and further undercuts ESPN's audience. Doing nothing, or attempting a half-measure won't cut it. ESPN needs a big move, and soon, to get ahead of this situation and put if in the best postition to take full advantage of the enormous potential of streaming to a huge, global, built-in audience.

Moving to a sustainable,stable streaming platform that allows live broadcast to a huge global audience is a good option. However,creating their own streaming servicem or outsourcing the streaming to a third party, is far less appealing for Disney than getting hold of an existing, massive streaming service that serves many other needs while instantly putting ESPN in a new completely new and ideal position.

Netflix has 83 million subscribers, and has enjoyed pretty constant growth. It has multiple deals with a wide variety of studios and production companies to stream content and create new exclusive content. And it's frankly the most recognizable name brand in content-streaming today.

The smart move for Disbey, Then, is to buy Netflix and move ESPN over to that platform. There are several options for the specifics--- make it an addpon service like the DVD option, or go for sheer quntity of subscribers by simply Adding ESPN to the service at no extra charge (At first,anyway) to subscribers, and in either case providing adverstising space during the streaming broadcasts. Keeping the games available for one month, for anyone wanting to save up a block of Games to binge on (Perhaps creating a new way of viewing sports programming) or re-watch them, Would provided added advertising potential (albeit at a lower rate than during the live broadcast and subsequent first 24 hours of "Rerun" streaming.) And the fact this would make ESPN content more readily available on mobile devices via the Netflix app -- where ad revenue could again be gerated to greater affect at higher rates, Due to the large subscriber base-- Shouldn't be forgotten.

Once Disney has Netflix, Then they are in a position for a very different approach to Fox for a deal. Netflix's subscriber base is approaching 100 million worldwide. They'll break through in China and India (where they're already available but not yet making a big push) fully in the next decade, That's inevitable and will send their subscriber rate into the stratosphere, So, with that platform, Disney can approach Fox about trading the Marvel Franchises back, in exchange for a good deal for Fox movies on Netflix. Offer to top any HBO or other outlet offers for Fox content, And offer FX exclusive broadcast TV rights to Disney movies hwen they go to broadcast television. A combo of exclusive FX access to Disney preimere on Broadcast networks plus a great deal for Streaming Fox movies on Netflix is the deal to offer.

i'd say getting the X-Men and Fantastic Four is one obvious answer Disney would seek to increase their selection of franchises to exploit not only cinematically but also Via Netflix after a purchase of the streaming servicem which is why a deal with Fox will become important at that point. The potential for Marvel inserting X-Men into the  MCU cinematically is huge, But the massive amount of properties in the whole Mutants" basket means exploiting that via Netflix TV shows is huge as well.

Purchasing Sony and Paramount is another big move that Disney could and should consider, along with a big Netflix merger. The back catalogue of films and TV shows would be a boon in the aftermath of a Netflix purcahse that would surely see some competitiors ending their deals to stream content on Netflix, as well as providing a lot of New IPs to develop. Paramount has Mission: Impossible, G.I Joe, Transformers, Terminator and Star Trek for example, While a purchase of SOny would bring Spider-Nan fully under Marvel's control and add Ghostbusters, Men in Black, Jump Street, Underworld, Resident Evil and  (If Sony manages to Retain it) James Bond to Disney's list of franchises to exploit on film,telvision and streaming.

I'd go for Paramount first, Before Sony Pictures ,just because it's got more to offer. And I'd do that ahead of a Netflix deal since having Netflix in-hand would make the "threat level" to other studios far more obvious. Which in turn means the Netflix and Sony would need to be either simultaneous or in quick succession, so nobody else steps in to gobble up Sony first instead,

Disney has had some remarkable success at the box office lately, And the coming years are shaping up to continue that trend, But uitimately they need their own streaming service for their large library of content, and they need to solve their ESPN problem before it grows worse. Netflix provides the answers to those problems, and opens new doors for Disney as well. All of their content in one place, a global streaming sports option, A subscriber base of nearly 100 million, and the chance to introduce advertising options into that already valuable equation. If Disney isn't going to sell or trade ESPN, Then Netflix is the right call and the sooner they make it the better.

How A Game-Changing Disney-Netflix Merger Would Rescue ESPN In 2017