NEW YORK (AP) – Comcast is dropping its bid for Fox’s entertainment businesses, paving the way for Disney to boost its upcoming streaming service by buying the studios behind “The Simpsons” and X-Men.
Getting Fox would help the House of Mouse compete with technology companies such as Amazon and Netflix for viewers’ attention – and dollars.
Disney needs compelling TV shows and movies to persuade viewers to sign up and pay for yet another streaming service. It already has classic Disney cartoons, “Star Wars,” Pixar, the Muppets and some of the Marvel characters. With Fox, Disney could add Marvel’s X-Men and Deadpool, along with programs shown on such Fox channels as FX Networks and National Geographic. Fox’s productions also include “The Americans,” ”This Is Us” and “Modern Family.”
The deal would help Disney further control TV shows and movies from start to finish – from creating the programs to distributing them though television channels, movie theaters, streaming services and other ways people watch entertainment. Disney would get valuable data on customers and their entertainment-viewing habits, which it can then use to sell advertising.
For Comcast, dropping the pursuit of Fox lets it focus on getting European pay-TV operator Sky, a deal that would help the Philadelphia-based cable and media company expand beyond the U.S.