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Disney to Acquire Twenty-First Century Fox

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131–140 of 362 posts

Re: Disney to Acquire Twenty-First Century Fox

#132
post #77

Earlier quoted context omitted.

It's entertainment. Why should anything other than being good for shareholders matter? It's not an essential goods company like say food or medicine

People didn't like this comment, but I think it's fair enough, at least from a capitalist perspective. The company is doing what it's supposed to do and the system is working as it should. (This is one of the reasons why I oppose capitalism)

Kind of. Depends on what part of capitalism you're referring to.

Because monopolies greatly reduce or limit competition, and competition is the big force that makes capitalism work properly.

Capitalism without competition is no different from Communism or a lot of other systems in which one party rules supreme.

Re: Disney to Acquire Twenty-First Century Fox

#133
post #52

Earlier quoted context omitted.

Right, but a large majority of it is. The film cost $445 million to make, including actors' salaries and marketing. That's over a billion in profit.

Exhibitors keep a large chunk of that $1.54bn.

The first few weeks mostly goes to the distributor, the longer it is in theater the more money the theaters make off of it, which is why Titanic was such a big deal for theaters.

Re: Disney to Acquire Twenty-First Century Fox

#134

Sane antitrust regulations should kill this deal. It is bad for everybody other than shareholders of those two companies. In particular bad for customers, other companies and employees: https://www.economist.com/news/finance-and-economics/2172555... https://www.economist.com/news/briefing/21695385-profits-are...

As long as Disney can take Star Wars: ANH and X-Men licensing rights away from Fox, then fine.

Yes, nobody wants good movies like Logan!

Know what we need more? Mediocre movies like the ones Marvel have been making. Know what's better than a good movie? A shallow movie full of forced jokes.

Now we can see the Fantastic Four facing space pirates that sleep with pacifiers in their mouths, maybe hugging teddy bears to. That would be a good movie!

Re: Disney to Acquire Twenty-First Century Fox

#135

Sane antitrust regulations should kill this deal. It is bad for everybody other than shareholders of those two companies. In particular bad for customers, other companies and employees: https://www.economist.com/news/finance-and-economics/2172555... https://www.economist.com/news/briefing/21695385-profits-are...

It's not so black and white. Stratchery posits consolidation may promote competition at the distribution layer, where Netflix presently stands to dominate: "To that end, might it be better for consumers, not-so-much today but ten years from now, if Disney were fully empowered to compete with Netflix? What is preferable? A dominant streaming company and a collection of content companies trying to escape the commoditiz…

Well, Stratechery has been shilling for the industry for quite a while now, on most major corporate issues.

Re: Disney to Acquire Twenty-First Century Fox

#136
post #3

It's mostly was they can control over the animated titles the Marvel franchises. Next is Sony studios.

I suspect that’s part of it but you don’t spend billions of dollars just to make a few X-men movies.

Admittedly Marvel was just a fraction of the equation. There's the Blue Sky Studios (Ice Age, Peanuts, Dr. Seuss, and soon Ferdinand) and the distribution rights to other tons of other films. I've been hearing report that Fox is keeping the rights to specific classic films and all music rights. But the music will be licensed out to Disney for practically nothing.

Re: Disney to Acquire Twenty-First Century Fox

#137
post #135

Earlier quoted context omitted.

It's not so black and white. Stratchery posits consolidation may promote competition at the distribution layer, where Netflix presently stands to dominate: "To that end, might it be better for consumers, not-so-much today but ten years from now, if Disney were fully empowered to compete with Netflix? What is preferable? A dominant streaming company and a collection of content companies trying to escape the commoditiz…

Well, Stratechery has been shilling for the industry for quite a while now, on most major corporate issues.

> Stratechery has been shilling for the industry

"Shilling" implies, perhaps to the point of requiring, monetary compensation for publishing certain views. The only people I know who pay for Stratchery use it to invest in start-ups. Maybe there is something shady going on. But reducing any argument you disagree with to shilling isn't productive discussion.

Re: Disney to Acquire Twenty-First Century Fox

#138

Why not go all the way and merge all companies into 1 big one. Being born on the wrong side of the iron curtain I already saw economy based on monopolies. Communism failed because prices were centrally set. We knew how to build useful things (that don't break 1 day after warranty) but not which ones to build and how many. (wiki) A price signal is information conveyed to consumers and producers, via the price charged…

That's what I've been saying for a long time. Some people say "it's just capitalism working as intended", but that's not exactly true.

A lot of the mechanisms of capitalism depend on competition. Capitalism without competition is no different from Communism or any other system in which one party rules supreme.

Re: Disney to Acquire Twenty-First Century Fox

#139

Maybe there will be a consolidation and some crappy repetitive movies will go away? I think these businesses are overvalued. What happens when consumers get sick of the super hero genre? EDIT: for whoever down-voted - that wasn't a sarcastic question. Honest question of what happens when the main products lose popularity? If there is a downturn in interest in that, will they get their $50B back?

An interesting datum is that movie ticket sales are actually down, big time. [1] Movies hit their peak, in tickets sold, way back in 2002. We're down 26% since then. Factor in population increases which should have resulted in a roughly proportional increase in ticket sales and it's shocking how bad movies are doing. But record breaking sales...? That's gross receipts or tickets_sold x cost_per_ticket. Ticket sales are dropping fast, but the price per ticket is increasing even faster. Some masterful grasp of supply and demand there...

Movie companies seem to be in completely denial about the change in quality being the source of their problems. This goes to explain many otherwise bizarre behaviors such as the cinemas absolute obsession with piracy even though most studies show it has at worst a modest effect. That's actually perhaps the thing I find most ridiculous about mega corporations. There seems to be this complete lack of self accountability. When reception or sales are poor they will blame absolutely everything under the sun, except their own decisions.

It's like how in the video game industry there was this belief that game review ratings had a causal relationship to increased sales. So the games industry completely gamed ratings and the correlation all but entirely disappeared. Go figure, games actually being good was the confounding variable. Who could have guessed?

[1] - https://www.the-numbers.com/market/

Re: Disney to Acquire Twenty-First Century Fox

#140

Earlier quoted context omitted.

Disney having more money and power to lobby against sane copyright laws is a negative for every citizen and really the world

It's not like the money being split between Disney and Twenty-First Century reduced the amount being used to lobby against sane copyright laws; the two firms were perfectly aligned on that issue. There are others where they might have different interests, but not that.

Yes it does. Because when they're separate companies they run into free rider problems when they try to coordinate.

This is why if you have one person bargaining with five the one holds a much better bargaining position.

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