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Disneyfying Netflix

Amidst the speculation of a merger between Disney and Netflix, Ampere considers the potential impact of the deal.

The merged entity would have a market cap of close to $200bn. This would put it beyond both Time Warner ($61bn) and Comcast ($159bn).

When added to Disney's  current revenue mix Netflix would represent 17% of overall turnover. This would place it behind Media Networks, Parks & Resorts, Studio Entertainment, but ahead of Consumer Products & Interactive.

Any deal between Netflix and Disney offers the potential to exploit synergies. Both Netflix and Disney have comparable consumer profiles, skewing to young demographics and younger families.

In addition, Netflix will not only be able to bolster its catalog with greater access to Disney titles, but also take advantage of Disney's content production resources. This would allow Netflix to further progress its original content ambitions. For Disney, the union would give it control of a platform that competes for customers of Disney's single largest business division, Media Networks.