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And that means Netflix, with its nearly 120 million global video subscribers, has an early lead in the race to become the next generation’s showbiz colossus. Economic history holds a rich archive of once-thriving firms that were overtaken by technological change. Far shorter is the list of companies that forestalled their demise by nimbly adapting to defeat new competition. It’s much too early, however, to count Disney out. The company is mobilizing, in two major ways, to outrun Netflix and remain the dominant player in American entertainment. What if Disney put highly anticipated films like Black Panther on its own streaming service, available only to subscribers? First, Disney has announced that it plans to acquire most of the assets of 21st Century Fox. If the Justice Department approves the $52 billion deal, Disney would gain possession of the 20th Century Fox film studio, including Fox Searchlight (which has produced Best Picture Oscar winners such as Slumdog Millionaire, Birdman, 12 Years a Slave, and The Shape of Water), the X-Men franchise, the FX and National Geographic cable channels, several regional sports networks, and the television production company that makes Modern Family and The Simpsons. The resulting conglomerate would own as much as 40 percent of the U.S. movie and television industries. Second, and more important, Disney is building a streaming product to deliver its content, old and newly acquired, directly to consumers—let’s call it Disneyflix.
For the original version including any supplementary images or video, visit https://www.theatlantic.com/magazine/archive/2018/05/disneyflix-netflix/556895/
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