Will Apple buy Disney?
Business Insider recently posted interesting news on talk from Wall Street on a potentially huge deal. This news would be about Apple and the possibility of them buying Disney. Just how realistic is this? There’s little doubt that Apple can afford to buy Disney outright, but will they and for what reasons?
Apple is currently sitting on a cash pile of over $215 billion. Of course there are a number of things the company could do with this. Will they reinvest this in future products? They continually release new products so an increase in R&D could be expected. This was increased from $8bn in the 2015 fiscal year to a little over $10bn in 2016. This only accounted for 5% of net sales, so there’s a great potential for increased R&D spending as Apple could consider diversifying or increasing the improvements in the latest iterations of the iPhone, Mac or other i-Products.
This won’t really put any sort of dent in that cash pile, it wouldn’t even negate the sheer amount of cash the company brings in each year. This is where Disney comes in. Content and how to use that content is a huge thing. Apple would hold a huge advantage should they gain the library of Disney.
It’s no secret that exclusive content is a giant advantage in any competition with another media company. The possibility of Apple holding the exclusive rights to the streaming of Disney films and TV shows. The licensing of any Disney mobile games being limited to iOS only. This alone would increase the perceived value of the iPhone, iPad and Apple TV. Of course, with the majority of the mobile and home computer market consisting of Android and PC respectively, it would severely undermine Disney’s bottom line. It would be counter-intuitive and likely never happen. However, timed exclusivity could be an option.
Looking at video games gives a perfect example of how exclusive content can sell devices. The Nintendo Switch has sold over 1.5 million almost exclusively on the back of a single game and brand recognition. Other consoles like Sony’s PlayStation 4, have a wide number of exclusives (Horizon Zero Dawn, The Last of Us, Uncharted) that act as system sellers. Of course games aren’t system sellers for phones in the way they are for home consoles, but they are certainly making an impact due to the growing size of the mobile gaming market.
Beyond games, there would be a great potential for Apple to use the success of Disney’s films. According to Box Office Mojo Disney found themselves with the top five grossing films of 2016. Imagine the possibilities of Apple TV, through iTunes, holding the rights to stream these films at the same time as the cinema release. While this is unlikely, the options directly following the cinematic release are there. It could be something as simple as earlier, if not exclusive digital access to Apple devices.
Of course there are pre-existing deals in place. Marvel and Netflix have worked together in the creation of a large number of series’. Netmarble, who are planning an IPO, have a deal in place to release games featuring Marvel, Star Wars and other Disney characters on both iOS and Android systems. This doesn’t include the countless other companies that have licensed Disney properties for games and other media.
“Apple is currently sitting on a cash pile of over $215 billion.”
cashed up tax dodgers will do the deal..and the consolidation continues..mickey gets eaten by the apple..
“The possibility of Apple holding the exclusive rights to the streaming of Disney films and TV shows. The licensing of any Disney mobile games being limited to iOS only. This alone would increase the perceived value of the iPhone, iPad and Apple TV. Of course, with the majority of the mobile and home computer market consisting of Android and PC respectively, it would severely undermine Disney’s bottom line.”