Nasdaq: CMCSA or the Comcast corporation is a worldwide technology and media company that provides people with an opportunity to stay connected to the moments that hold importance in their lives. On the other hand, the multinational media and entertainment company known as The Walt Disney company inspires, informs, and entertains people all around the globe. These two companies have recently joined hands and signed off an important deal.
A carriage contract for multiple years has been signed between Brian Roberts, the Chief Executive Officer and the Chairman of the Comcast Corporation, and Bob Chapek, who is the Chief Executive Officer of Walt Disney.
The details and terms of conditions about the finances or the deal, in general, have not yet been revealed. However, one piece of information was provided by both the companies that the Disney entertainment programs and the family, kids, news, and sports programs will all proceed in their makings. These programs will be accessible to the clients of Xfinity TV. Other than this, the agreement of the carriage has been renewed by both companies together.
They had stated that in the coming days, their programs would be accessible to the Atlantic Coast Conference’s audience and fans. The clients of Xfinity will be provided with the ACC Network by Comcast.
Fresno (ABC30/KFSN-TV), Raleigh-Durham (ABC11/WTVD-TV), Houston (ABC13/KTRK-TV), San Francisco (ABC7/KGO-TV), Philadelphia (6ABC/WPVI-TV), Chicago (ABC7/WLS-TV), and the New York (ABC7/WABC-TV) which is run by ABC I son the waitlist for getting approval of retransmission. At the same time, the eighth season of the SEC Network has been permitted to continue in the agreement. In a statement, it was mentioned that the channels of National Geographic, FX networks, Freeform, Disney branded networks, ESPN channels, etc., have all been granted permission to continue airing their programs as per schedule.
All other features and services provided to the Xfinity clients, including ESPN+ and Disney+, will stay available. At Comcast, the client’s proposition and products senior VP named Rebecca Heap stated that Comcast would keep on providing its services to the clients of Xfinity with the consent of Disney. They have both reached a mutual agreement regarding it, and there will be no changes in the future as well.
The favorite sports games will be on air soon for the Xfinity customers through the SEC network, which has been renewed, and the ACC Network, which will soon be launched. Along with these, there will be more programs and networks regarding general entertainment, sports, and news, etc.
The Disney Media & Entertainment Distribution’s executive VP, Sean Breen, in a program stated that the programming provided by Disney for the clients of Xfinity would continue to enjoy their services. This deal between both companies will prove to be better for customers of both companies. Both the companies are seen to be happy and satisfied with the agreement.
On the 30th of September 2021, the deadline for the Disney carriage agreement was met. Moffett Nathanson, an analyst, stated that back in the year 2012, this agreement was revealed to the public for the first time.
Through this appealing deal, Comcast tried to shoot for two gains, One was to get Disney hooked, and the other was to get the NBCU favored as Comcast had recently owned it. In order to bring life to the cable networks and to prove that they will be attracted to it, Comcast shoots its shot.
On the 30th of September, It was stated by Michael Nathanson and Craig Moffett, who are both analysts of MoffettNathanson, that Comcast has decided to own the NBCU, and both parties signed an agreement for this.
The Hulu stake will not come under the settlement even after the modification of the programming. Neither Comcast nor Disney has shown interest in doing so. Comcast had high hopes and great future plans for the Peacock TV, but now with this situation, some irregularities are expected. Hulu, which has some shares owned by Comcast and Disney, would not be under the control of Comcast.
Observing the current situation, The analysts stated that in the year 2024, it is likely that the assessment and evaluation will happen independently. This is because Disney will be the independent owner of Hulu in the future as it already controls it. Hulu streaming services shares of about 33 percentage points are owned by Comcast, but it will not favor the company over Disney in owning it completely.
Hulu has received a premium warrant from Netflix. Even before the hype of Subscription video on demand or SVOD internationally that started with the classical media companies, a much larger scale, popularity, and unique brand equity was achieved by Netflix. The total revenue that Netflix will generate in the year 2024 would be less than now.
Right now, Netflix has a revenue of about six points, three times more than what it would be having in the year 2024. The first thing to consider for the Video on Demand feature of Hulu would be its comparison to Netflix. This would be the starting point for a VOD subscription. Hulu received value from the MoffettNathanson team, which was presented through a proper report. This was despite that the Hulu stake’s time ahead was not announced on Tuesday.
It was concluded by Nathanson and Moffett that if the after-tax basis is considered, then the Comcast share as fully diluted comes out to be 2.04 dollars or within a range of fifty-seven billion dollars is the aggregate value of Hulu. It was estimated that about ten billion dollars are the total cost of Live TV products by Hulu. Other than this, about forty-seven billion dollars is Hulu’s subscription video on demand or SVOD business value. This was chalked out after valuating for five times maximum by both the companies.
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