Full transcript
0:00WOODRUFF: A giant deal today in the world of entertainment.
0:03The Disney Kingdom is on the verge of getting a lot larger, buying a huge chunk of Rupert
0:09Murdoch's 21st Century Fox for $52 billion.
0:14That includes film and television studios.
0:17Hari Sreenivasan is in our New York studios about what it could mean.
0:20(BEGIN VIDEOTAPE)
0:21HARI SREENIVASAN, PBS NEWSHOUR CORRESPONDENT: Some of the biggest franchises in the business,
0:24Marvel Superheroes, the "Star Wars" films and Pixar blockbusters -- all would now be
0:30under the Disney roof.
0:31And that may signal some big breaks with Netflix, Amazon and others.
0:35This all is happening on the same day that the FCC voted three to two along party lines
0:40to end so-called net neutrality.
0:42But many experts say companies will now be able to create a kind of fast lane on the
0:46web for the traffic and content they want you to choose or that you're willing to pay
0:50a higher rate for.
0:52NPR’s David Folkenflik joins me now.
0:54So, first of all, what does Disney want with Fox?
0:56DAVID FOLKENFLIK, NPR: Disney right now is looking at a big, big winter coming, and it's
1:01in the form of Netflix, it's in the form of Amazon, and it's even probably going to be
1:04in the form of Apple.
1:05These guys are going to be able to spend billions of dollars a year in creating content that
1:09they can give to digital consumers on demand.
1:12And so, Disney already the biggest conventional Hollywood Studio says let's ramp up.
1:16Let's get the TV studios at Fox.
1:18Let's get the movie studios at Fox.
1:20Let's get their back catalogs.
1:21Let’s get their executives who have the know-how in Los Angeles and let's really do
1:24that.
1:25Then they're interested in international distribution, major European satellite provider, Sky, is
1:3140 percent controlled by Fox and the Murdochs.
1:34They’ll get that.
1:35In fact, the Murdochs are in the process of trying to take over that whole company.
1:37SREENIVASAN: So, there are reports that the president spoke to Rupert Murdoch.
1:40They’ve been friends for a long time.
1:41They spoke yesterday.
1:42This deal is announced today.
1:44Any concerns?
1:45FOLKENFLIK: Well, the real interest, of course, is Trump's concern.
1:48The president has forged an alliance with Rupert Murdoch, who has been the acting and
1:54leading CEO of the Fox network since they tossed out the founder over sexual harassment
1:58concerns over 18 months ago.
2:01And what Trump's real concern is somehow Rupert wouldn't be controlling Fox News, that he
2:04wouldn't be keeping Fox News.
2:06He’s saying, hey, is that going to stick around?
2:07And I think that’s the source of concern because Fox News in some way has served not
2:11only as a cheerleader but an enforcer and as a message creator for the president and
2:17for those close to him.
2:19It's been a closed loop for him and it’s been a vital part of him holding to that base
2:23even as controversy swirls and surrounds that White House.
2:25SREENIVASAN: What happens to general viewers like us, so to speak?
2:30Are there going to be dinks in how we get these movies and where we get them from, especially
2:35if we're just watching at home?
2:37FOLKENFLIK: Right.
2:38So, there's a real interesting thing here.
2:39You would expect -- and I certainly do expect -- federal regulators either at the FCC or
2:44in the antitrust division in the U.S. Justice Department to take a very close look at this.
2:48After all, this like with like.
2:50Disney and 21st Century Fox and Fox more generally have been real competitors for decades and
2:55they’re absorbing a lot of the folks they've competed with.
2:57This should have antitrust concerns.
3:00At the same time, the question is, if they're competing with streaming forces, will this
3:04provide an extra competitor in the streaming realm?
3:08Disney already announced it intended to have a major streaming service for its entertainment
3:12offerings and for a separate one for sports offerings, with certain ESPN offerings on
3:17there.
3:18Having some Fox regional sports elements to supplant, to fuse that in there, could help.
3:25You could have additional Fox viewing things on the entertainment streaming service.
3:29Could this be more of a competition for Amazon and Apple and Netflix?
3:34That could be a benefit to the consumers.
3:36What I don't think is somehow it's all going to be cheaper for us.
3:39I just think there are going to be other elements that could be viable.
3:43Disney wants to survive.
3:44SREENIVASAN: This is happening on the same day that the FCC changes these rules on net
3:49neutrality.
3:50A lot of people, you know, fighting against these changes that are happening today.
3:55Is this the kind of consolidation that the people who didn't want these changes to happen
3:59are worried about, that there's going to be so much power in the hands of a new Disney,
4:04if they're also a streaming competitor, they can decide, well, guess what?
4:07You get to have this Disney movie at a great rate of speed, versus what I -- you know,
4:12how I distribute this elsewhere?
4:14FOLKENFLIK: Well, I mean, I think we have to think about the enormous consolidation
4:17that's happening all over the technical landscape, as well as the content landscape.
4:22And in some ways, these moments are blurring.
4:25You know, Netflix are creators.
4:26They're going to spend, I think, $8 billion next year in content, not just a platform
4:30for viewing other content.
4:31Disney wants to get more into the platform business.
4:34I think you’ve also see -- you've seen already extraordinary consolidation in those people
4:38who provide Internet service.
4:40I mean, I think you're looking at Comcast.
4:43You're looking at Spectrum, which absorbed the old Time Warner and Charter.
4:48And you're looking, also, at AT&T and Verizon is in that mix as well.
4:52You're looking a very small number of companies controlling both the content information that
4:58is created and the ways in which we consume it.
5:00So, it's hard at certain points if you're looking at one group of titans to root for
5:04that group, and it's hard to root for another group of titans when you look at that.
5:07I do think there are questions about -- I mean, rarely does it seem to me that the consumers
5:11are better of.
5:12SREENIVASAN: NPR's David Folkenflik, thanks so much for joining us.
5:14FOLKENFLIK: You bet.