Will Disney Compete And Win Vs. Netflix In Streaming?

Disney has made plans to launch 3 streaming services to compete against services like Netflix.The acquisition of Fox significantly bolsters Disney's ability to compete vs. Netflix because of the scale it adds to the Disney library.Streaming TV and Film content has dramatically changed the media industry over the past 10 years. Over 30 million internet-savvy cable subscribers have canceled their service, this has resulted in declining earnings and valuation multiples for legacy broadcast TV companies such as CBS (CBS), Viacom (VIAB), and Disney (DIS). Disney is particularly vulnerable to cord-cutting due to ESPN being amongst the most pricey channels in the traditional cable bundle.Well-run companies react to changing markets and Disney has been aggressively re-positioning itself to thrive in the new media paradigm that streaming players such as Netflix (NFLX) and Amazon (AMZN) have created.First, Disney announced it would acquire a majority ownership in BAMTech in order to launch a direct-to-consumer (“DTC”) sports streaming service in 2018. Then, Disney announced it would end the distribution deal with Netflix and launch its own streaming service by 2019. Finally, Disney announced it would acquire 21st Century Fox (FOX, FOXA) in an effort to boost its content library so that it would have enough scale to launch its own DTC streaming service that would be more competitive with Netflix.