Are you a cord cutter, leaving cable TV behind for the new frontier of over-the-top boxes and Netflix downloads? You’re not alone. In fact, the numbers of people who never had a land-line or cable subscription is growing. This has companies like The Walt Disney Company nervous since they make a lot of their revenue off of distribution deals with cable companies. So what is Disney to do?
Well Disney has already bought one company that could provide an online streaming option for ESPN, but a much bigger purchase could be on the Mouse’s mind. The chatter on Wall Street is that Netflix is seriously under consideration for acquisition by the House of Mouse.
This is a much better purchase for Disney than the recently rumored purchase of Twitter. Disney makes content, Netflix distributes content (and makes some of their own original content, including a number of series for Marvel) in a way that Disney hasn’t yet been able to master (Disney Movies Anywhere is their attempt).
Could it happen? Netflix’s stock rose by 4.1% on the rumor, so Wall Street, at least, is giving it some credence. Do you think it would be a good purchase for Disney?