Discast? Comney?

What worries about "big media" truly miss is that consumers were getting nailed by the battles between existing players over escalating rights fees. Channels just went blip during these fights. It was absolutely inevitable that as soon as the equity markets stabilized, some big cable outfit was gonna make a play for content, with Disney the obvious choice.

Comcast CEO Brian Roberts must look at the ever-increasing rates Disney demands for ESPN programming, the fight over hi-def rights has been particularly long and hard, and say, "Screw it! It's cheaper just to buy the whole damn company!"

Comments

[Steve]

The "content + distribution [+ exhibition]" strategy worked during the heyday of the studio system in Hollywood, at least for the studios. They put out boatloads of films each year, kept the best and brightest talent under exclusive contract, never released a film without the Hays Office (aka Legion of Decency) seal of approval, and made piles of cash.

Who cares that every film was treated as if it had been produced for an audience of 10-year-olds, directors (Orson Welles excepted) had little control over final cut, actors were consistently typecast, and that Hollywood butchered most of the best literature it adapted into film?

I do.

[Franklin Harris]

Reading Steve, you would never know he was talking about Hollywood's Golden Age.

[Same old same old]

The reason that Comcast is buying Disney is simple, sad and the same old same old. Comcast is in the extraordinarily lucrative business of cable. It has piles of cash. What should it do with that cash?, Give the cash back to its shareholders in the form of increased dividends? Nah! They think they're smart (else, why the cash?), they're bored (cable, you know), so they buy an entertainment company. It will all go south in the end.

[JimInNoVA]

Just as long as the customer service at Comcast becomes like the guys at Disney and not the other way around.

You think ticket lines are bad now? If the cable company takes over, you won't get a new line for 20 years. 🙂

[Seth]

When, exactly, has the "content + distribution" strategy worked in the entertainment business?