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Episode IV:A NEW MOUSE | DISNEY | IT IS DONE

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3 minutes ago, Rorschach said:

I'm also curious to see what they decide to do with the FOX animated shows like The Simpsons, Family Guy, and Bob's Burgers.

That's not in the deal, the reason why this is going as planned is that Fox keeps 75-80% of their TV stuff.

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So going even further, using a C4 measure of market concentration (so the market share of the top four firms in the industry)

 

Pre-Merger (using 2016 numbers): 68.3%

Post-Merger (using 2016 numbers): 76.3%

 

A typical oligopoly is going to have a 90% market concentration in the top 4 firms or so.  It would take both Paramount and Sony also merging with one of the major studios to bring the market concentration up to 89.8%, which wouldn't even be as severe as other oligopolies which often see 2 or 3 firms owning over 90% of the market.

 

The film industry is still going to be competitive

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1 hour ago, That One Guy said:

Combined revenue of Fox and Disney last year is $4.469B, or 39.2% of the yearly box office

 

37 minutes ago, The Last Panda said:

Calculating the HHI for just the top 20 film studios in 2016 (a year that was dominated by Disney, so the HHI will be inflated by a proposed merger in this year) and you get 1569, which indicated there is some concentration in the industry but not to a severe amount by any standards.

 

A proposed merger would lead a 2307 HHI, which is definitely a significant jump and would without a doubt increase Disney's marketpower, but the industry still would not be considered heavily concentrated by typical anti-trust standards.  There won't be any legal concerns about this, and I don't see any other significant merger being possible, as of now.

 

 

27 minutes ago, The Last Panda said:

That's pretty normal for the leading firm in a moderately concentrated oligopoly? (Which if you factor out DWA and give it to Universal for the HHI, it goes down to 2175, so less of an impact, obviously)

 

There shouldn't be any legitimate anti-trust concerns with this merger.  

 

I won't be convinced that a company owning 40% of the revenue of a market is just fine for us costumers. I don't care if it's even worse in other markets or industries, it doesn't change one bit the fact that it's simply not okay for the costumers.

 

I don't give a damn about anti-trust concerns or law concerns over this - concentrating power in the hands of fewer and fewer companies just never ends well for the costumers. And we are the fucking costumers in this and we should be fucking worried every single time it happens.

 

It really boggles my mind that some of you are actually happy with this.

 

 

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6 minutes ago, Rorschach said:

I'm also curious to see what they decide to do with the FOX animated shows like The Simpsons, Family Guy, and Bob's Burgers.

They’d stay on FOX and FX due to the likely aspects of the deal but imo Disney will release the Bob’s Burgers Movie through either it’s streaming serivce or potentially a rebranded Fox label.

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3 minutes ago, Darth Suburious said:

You are comparing two much smaller studios to two giant studios.  Summit had a smaller market share and fewer employees. It sucks that people at summit loss their jobs. It is like two small local gas station companies in Minnesota combing to be on gas station company and comparing it to Shelling sell its assets to BP.  Being like "Nobody cared when the one Minnesota gas station sold its assets to the other Minnesota gas Station company."  

This is true. But, I did also bring up MGM buying United Artists, which is the same thing.

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Just now, YourMother the Edgelord said:

They’d stay on FOX and FX due to the likely aspects of the deal but imo Disney will release the Bob’s Burgers Movie through either it’s streaming serivce or potentially a rebranded Fox label.

All of Fox's tv channels besides FX and National Geographic are staying with Fox.

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2 minutes ago, Mulder said:

That's the channels not the content supplier - 20th C Fox TV

 

http://deadline.com/2017/12/what-happens-to-fox-if-disney-deal-happens-broadcast-news-sports-1202220975/

 

Quote

Because of how this deal — if it closes  — came to be, Disney would cherry pick the Fox assets that best fit its existing portfolio. It would leave a hodgepodge of networks and would separate the broadcast Fox network from its leading supplier, 20th Century Fox TV. The TV studio is believed to be among the assets pursued by Disney, along with Fox’s movie studio, its 30% stake in Hulu, the FX and National Geographic cable networks group, and regional sports networks.

 

 

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You guys do realize Fox would've sold to someone else if Disney didn't buy, right?

 

Having said that I hope Fox can operate as a sub studio like Marvel, Pixar and LucasFilm.

 

That approach is working wonders for Disney and churning out quality product thus far.

 

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7 minutes ago, Mulder said:

That's not in the deal, the reason why this is going as planned is that Fox keeps 75-80% of their TV stuff.

Fox keeps their broadcasting networks, but the TV production studio is part of the deal so those shows are included. It’ll just be a case of the production studio owned by one company airing their shows on a station owned by another company. For example, This is Us is a Fox TV production, but is aired on NBC.

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5 minutes ago, Arlborn said:

 

 

I won't be convinced that a company owning 40% of the revenue of a market is just fine for us costumers. I don't care if it's even worse in other markets or industries, it doesn't change one bit the fact that it's simply not okay for the costumers.

 

I don't give a damn about anti-trust concerns or law concerns over this - concentrating power in the hands of fewer and fewer companies just never ends well for the costumers. And we are the fucking costumers in this and we should be fucking worried every single time it happens.

 

It really boggles my mind that some of you are actually happy with this.

 

 

I didn't say I was happy with it, I'm simply indifferent and don't get what the doomsday fuss is about.

 

Furthermore, there are plenty of cases where concentrating an industry can actually be beneficial for consumers, given the structure of the industry at hand.  There are many market structures that simply couldn't exist as perfectly competitive markets (or monopolistic competitive markets) given the nature of the industry.

 

Even in the film industry, some market concentration could be beneficial as it gives the top firms more resources to innovate or expand their decisions.  Further, given the nature of the emerging streaming markets, there isn't room in the film industry for smaller blockbuster film studios.  You can have a few large firms and then your large number that produce a few low budget affairs (like A24 and such).

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1 minute ago, TalismanRing said:

That's the channels not the content supplier - 20th C Fox TV

 

http://deadline.com/2017/12/what-happens-to-fox-if-disney-deal-happens-broadcast-news-sports-1202220975/

 

 

 

 

1 minute ago, Deja23 said:

Fox keeps their broadcasting networks, but the TV production studio is part of the deal so those shows are included. It’ll just be a case of the production studio owned by one company airing their shows on a station owned by another company. For example, This is Us is a Fox TV production, but is aired on NBC.

My mistake then, thanks for the clarification.

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Monopolies on this scale are bad for everyone no doubt but it’s inevitable that someone would buy Fox. I am pissed mainly because Fox is the best of the main six in my opinion in film making and in fact a lot of films from Fox made my top 10 this year 2 are in my top three and it gives Disney a shitton more power and if the stories from @DAJK are true, theaters are fucked the most. But I am indifferent because it’s capitalism, the big fish eats the little fish and a bigger fish eats the big fish in return. There’s nothing we can do. 

Edited by YourMother the Edgelord
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