Comcast challenges Rupert Murdoch: comment from Ostmodern

Comcast challenges Rupert Murdoch: comment from Ostmodern

“We think the most interesting thing about these big US/UK (and Europe) deals is the fact that there appears to be an attempt to homogenise media experiences globally (based on the success of global players like Netflix)

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“Undoubtedly the world of media and entertainment has seen a huge amount of consolidation over the last few years, with the big cable and telco companies seeking to shore up their leadership positions by merging and acquiring other sector players. The Disney-Fox deal of course springs to mind but there are a plethora of others featuring huge names that have changed the face of the media landscape (Liberty and Virgin, AT&T still in talks with Time Warner, Discovery and Scripps to name but a few…)

“The news that Comcast has now entered the fray to take over Sky in direct competition with Rupert Murdoch’s 21st Century Fox is therefore not necessarily surprising.

“As one of the world’s leading telcos, Comcast’s acquisition of Sky would put the company into a dominant position in the global media ecosystem. The deal would allow Comcast to add digital services to its cable offering as well as expanding its footprint on a truly international scale.

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“This represents a huge opportunity. Clearly the older, more traditional cable and telco companies are mindful of the flux of new entrants to the market with the likes of Netflix and Amazon making serious waves in a hugely competition marketplace. But in many areas the more established companies still have the advantage – brand recognition, customer loyalty and deep, long-honed expertise.

“The battle lines have been drawn as media entities across the globe look to position themselves as the ultimate media platform – a one-stop-shop for consumers to get all the services they need and more. For those companies that can combine more traditional pay-TV offerings with digital and OTT services, there is a huge opportunity to succeed in a crowded sector. The Comcast/Sky deal would prove to be a fascinating chapter in the ever-evolving story of the world of TV and media, and would certainly give its competitors cause to take stock.

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“Our experience has shown us that actually media consumption between the US, UK and Europe are subtlety but intrinsically different and it will be fascinating to see whether these technology and content tie-ups with Disney and Discovery (Eurosport) and a potential Comcast and Sky deal will successfully meet the differences in customer expectation between the regions they will span."

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