Michael Breit Talks Disney/Fox Deal on CNBC’s Closing Bell

Bill Griffeth:  Is there room for all of them, or is there going to be a winner and a loser here?

Michael Breit: There could be a winner and a loser but you’re looking at an ESPN+ as a streaming service, a family and entertainment streaming service and a yet to be determined streaming service. So there could be all three. Whether they all survive or all get scaled – soon to be determined.

Bill Griffeth: Tuna, what do you think?

Tuna Amobi: So we think Netflix surely has something to be worried about. However we kind of differ a little bit because we think that the pie for streaming is large enough for Disney and Netflix to coexist and be profitable over the long term. But there’s no question in our mind that this deal significantly enhances Disney’s ability to go head to head with Netflix and potentially surpass, you know, Netflix with the launch of the direct to consumer offerings. Clearly Disney’s got not just the entertainment but also live sports which Netflix doesn’t offer. And that live sport has actually proven to be the glue that holds some of these slimmed down packages together. And now you throw in the Hulu which we think provides optionality that Disney can also, you know, use to dial up or down as they dip feet, as they see Netflix continue to react.