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News Disney and Fox come to terms -- announcement soon; huge IP acquisition

Darkprime

Member
Looks like Mexico's IFT is having the same concerns as Brazil with sports channels.

The merger between Disney and 21ST Century Fox could affect Mexican Soccer


  • The IDET detected disadvantages to promote competition as well as distribution of audiovisual products in Mexico with the merger between Disney and Fox
  • Mexican soccer could be involved after 4 teams are broadcast by Fox Sports
  • Fox launched a premium application with national and international sports content, whose price is 139 pesos per month
From the Institute of Telecommunications Law (IDET) concerned the merger between Disney and 21st Century Fox , as this could have on consumer detriment television in Mexico, including football fans.


According to an Economist report , the IDET has stated that it finds disadvantages to promote healthy competition as well as the distribution of audiovisual products; this, despite the fact that the Federal Telecommunications Institute still needs to analyze the transaction.

And it is that the games of Monterrey, Pachuca, León and Tijuana are broadcast by the Fox Sports signal , which means 22 percent of the teams that play in the first division of the country.
While, from ESPN can see the matches of Atlas and Santos, although it is shared rights with TV Azteca .

Competition.
After the announcement of purchase, the media reports, Fox launched a premium application with national and international sports content, whose price is 139 pesos per month, or free for those who already pay for the television service.

Similarly, El Economista said that Morena senators will summon the commissioners of the IFT, Gabriel Contreras , as well as Alejandra Palacios , from the Federal Commission of Economic Competition, to look into the risks of the union.

In the last tournament, 31 percent of the 153 games played in the regular season were broadcast exclusively by a pay-TV channel, while 77 percent were tuned to open television.

And, during the last four years, the television offer of the parties changed for the followers, derived from the distribution of television rights, which produced better offers from Fox Sports, ESPN, TVC Deportes as well asClaro Video.

In such a way that the Mexican amateur would have to pay to be able to watch the transmissions of the equipment, something that lives since 1998 when Televisa incorporated first division matches in its pay signal (Sky) since by contract it was established that the clubs yielded two or three matches per tournament.

However, this fact could be slowed down in Mexico, also, there are precedents, in Argentina, to see football matches must be paid, while in Brazil the purchase was not authorized by the Administrative Council of the Economic Defense; Meanwhile, in the United States, the union was made without the inclusion of Fox Sports , to avoid monopolistic actions.
 

Twilight_Roxas

Well-Known Member
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Just tell them to sell the sports channels.
 

Darkprime

Member
Just tell them to sell the sports channels.
Whether these are legit concerns by CADE or IFT or not who knows maybe they just want some $$$ from Disney. Or they simply feel like that have to leave their mark on this historic merger. I dont understand why Disney isn't offering concessions to Brazil and Mexico. I get it, it will be a loss there is no doubt about that but at this point if its holding up Mexico and Brazil approvals. Whats the alternative? Brazil doesn't seem to want behavioural fixes and clearly wants the sale/divestiture of assets. Mexico will probably be the same. At this point it seems easier to divest Fox Networks Group Latin America.
 

seascape

Well-Known Member
Whether these are legit concerns by CADE or IFT or not who knows maybe they just want some $$$ from Disney. Or they simply feel like that have to leave their mark on this historic merger. I dont understand why Disney isn't offering concessions to Brazil and Mexico. I get it, it will be a loss there is no doubt about that but at this point if its holding up Mexico and Brazil approvals. Whats the alternative? Brazil doesn't seem to want behavioural fixes and clearly wants the sale/divestiture of assets. Mexico will probably be the same. At this point it seems easier to divest Fox Networks Group Latin America.
No way. Sell off the conflicting sports channels but not the entire Latin American Network. That is one of the best assets they bought. Remember Disney wants to be a completely global company. Offer to build a park in Brazil. South America is a huge market and Brazil is in the middle of it with a growing middleclass.
 

Darkprime

Member
No way. Sell off the conflicting sports channels but not the entire Latin American Network. That is one of the best assets they bought. Remember Disney wants to be a completely global company. Offer to build a park in Brazil. South America is a huge market and Brazil is in the middle of it with a growing middleclass.
I think they would have more trouble selling the conflicting channels individually unless they sold them off for dirt cheap. They would have more luck finding a buyer and getting what its worth if they sold off the entire Latin America Network. If the rumours going round are true they are already have trouble finding a potential buyer for the local RSN's in the U.S and will probably have to sell those off at a loss as well.
 

bartholomr4

Active Member
From the website : https://www.estrategiaynegocios.net/ocio/1256862-330/mickey-y-homero-en-la-misma-empresa-comisión-aprueba-compra in Mexico ( This is a Google Translation). Apparently Disney had to divest itself of a joint venture it had with Sony Pictures.

The Federal Commission of Economic Competition (Cofece) unanimouslyauthorizedthis Wednesday the merger between The Walt Disney Company and 21st Century Fox .

According to the regulatory body, the process is unlikely to affect economic competition and free competition, according to a statement.

The companies announced in mid-2018 the acquisition by Disney of 100% of the share capital of Fox ; this includes film and television studios, regional cable and sports entertainment channels , as well as international television businesses.

In the statement, the Cofece noted that, with the transfer by Disney of its participation in Walt Disney Studios Sony Pictures Releasing of Mexico in favor of Sony Pictures would eliminate any possible risk to the competition that the transaction could imply in the market of movie distribution.

On Monday, the regulatory body noted that there were no effects on competition due to the merger. "The commissioners determined that, for what they do to the markets that they had to analyze (movies, DVDs and marketing) they found no reason to worry about the possible damages to the competition derived from this merger, for which they would have already given their approval. "Indicated the Cofece.
 
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LieutLaww

Father, the sleeper has awakened !
Premium Member
How do you mean divest, Disney doesn't own Sony, they are completely separate companies ans Sony will continue to make Spider-Man movies as they have the rights to do so,
 

LieutLaww

Father, the sleeper has awakened !
Premium Member
Sony and Disney have a arrangement to allow Spidey into the MCU the Fox deal does not affect this.
 

bartholomr4

Active Member
You're confusing a distribution deal Disney and Sony have in another country which probably none of knew about until now with the separate deal to share MCU Spider-Man, which doesn't have to be dissolved.
Correct. While the article doesn't provide detail of the Joint Venture, it does imply the distribution arrangement was specific to Mexico.
 

JoeCamel

Well-Known Member
Disney is bribing Brazil with Disneyland Brasilia!


Link in Portuguese, but google is your friend!

I'm being sarcastic, this is just a rumor
Now you know their plan for reducing overcrowding at WDW
 

Darkprime

Member
Where did you hear that? You got a link? Because at this point I feel like approval from the IFT is inevitable.
I dont think I can post it because its not english but basically google translating the first line comes with this.

In the next few days, its up to the IFT to sanction one of the most important acquisitions in the audiovisual content industry in recent years
 

Darkprime

Member
They also seem to imply brazil might have approved it with conditions so maybe their ruling recently is why IFT is being so quick on its decision. This could imply that maybe Disney has agreed to run Fox sports as its own entity in Brazil.

The detailed analysis of the segments and preferences should result in the necessary measures to prevent a transaction like this from resulting in an excessive market power of Disney-Fox.

To date, international experience (USA, Europe, Brazil, for example) is aimed at conditioning the merger to compliance with legal measures that guarantee the continuity of the existing competition between the sports signals of Disney and Fox.

An unrestricted authorization in Mexico would allow the new company to price its signals unilaterally along with other market shares, to the detriment of competition, the plurality of content and the welfare of pay TV subscribers.
 

bartholomr4

Active Member
They also seem to imply brazil might have approved it with conditions so maybe their ruling recently is why IFT is being so quick on its decision. This could imply that maybe Disney has agreed to run Fox sports as its own entity in Brazil.
Or agree to broadcast the sports items in question (Footbol) over the air, instead of on cable or pay per view, which is the concern at heart..... I don't know anything more than anyone else outside of Disney, but did read an article about the negotiations and speculation on the types of concessions they were looking for Disney to grant.... i.e. how can Disney guarantee access of sports programming to the masses without Fox acting as a competitor in the space.....
 
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