Referring to speculation about a merger between Disney and Netflix, Ampere Analysis has been considering the potential impact of such a deal. The research and forecasting company says the merged entity would have a market capitalisation of close to $200 billion, making it larger than both Time Warner ($61bn) and Comcast ($159bn). Netflix would represent 17% of overall turnover at Disney.
Daniel Gadher, Analyst at Ampere Analysis, says Netflix and Disney both skew towards young demographics and younger families with their services. “Netflix will not only be able to bolster its catalogue with greater access to Disney titles, but also take advantage of Disney’s content production resources. This would allow Netflix to further progress its original content ambitions. For Disney, the union would give it control of a platform that competes for customers of Disney’s single largest business division, Media Networks.”
You can read more of the company’s Netflix analysis here.