What's going on?
21st Century Fox reported quarterly results on Wednesday after its soon-to-be parent company, The Walt Disney Company, reported its own on Tuesday. Fox beat expectations while Disney missed the hoop.
What does this mean?
Fox was sly as ever this quarter – it delivered higher profit (nearly double this time last year) and revenue than analysts expected. This was partly down to its “entertainment assets” a.k.a. its successful movies – like Deadpool 2 – and its cable network.
Meanwhile, Disney couldn’t save Mufasa from falling into the stampede this time and its results missed expectations (tweet this), with both its top (a.k.a revenue) and bottom (a.k.a. profit) lines leaving something to be desired. The company’s two recent box office smashes – Avengers: Infinity War and Incredibles 2 – weren’t enough to buoy its results, despite Avengers delivering the
best music video biggest opening weekend of all time.
Why should I care?
For you, personally: All the better to watch you with.
Disney’s been investing in its own online streaming platform that’ll be going toe to toe with the likes of Netflix and Amazon Video. Now the ink’s all but dry on its deal to purchase Fox, Disney’ll also get a majority stake in major streaming player Hulu, which should help it compete. Plus, it might pull its shows (like Marvel’s Jessica Jones) from Netflix, now that it’s a rival. All of this means you’ll probably get more quality streaming content – remember that stellar shows like Stranger Things and The Handmaid’s Tale are both originals from Netflix and Hulu, respectively.
The bigger picture: All’s fair, albeit bewildering, in love and war.
There’s still some drama yet to unfold. Comcast was in the running for Fox but it bailed (after a convoluted three-way bidding war). However, Comcast (along with AT&T) owns a 40% chunk of Hulu. Once the Disney-Fox deal’s complete, Disney’ll own 39% of British broadcaster Sky, too – the other 61% is currently being courted by (you guessed it) Comcast (as well as Fox, for that matter).