Credit: Disney+Even while it faces multiple accusations and legal action against its allegedly anticompetitive business practices, Disney is looking to go even further with its streaming.
The Walt Disney Company is one of the largest and most powerful media companies in the world, but that isn’t enough for shareholders these days. The demand for constant expansion (and, with it, eternal dividends) is neverending, and the Mouse House has actually been struggling to figure out what direction to take to grow.
Streaming is not working out so great (even when you pretend that Disney+ is profitable by factoring in ESPN+ revenue), theme parks around the world are faltering under the weight of massive price hikes, and the global box office is…testy, at best.
Related: The Walt Disney Company Fails at Erasing Monumental ‘Antitrust’ Lawsuit in Court, Verdict Incoming
In response, Disney has a new strategy: joint ventures with its competition.
In India, the Mouse House just inked an estimated $8.5 billion to dominate the media landscape of the world’s largest consumer market in collaboration with Reliance Industries, the company that already basically controls the country’s energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles.
The deal was being investigated by the Competition Commission of India, which decided a near-monopoly was fine as long as Disney agreed not to raise prices…on advertisers.
In the United States, Disney is attempting to form a joint venture with Warner Bros. Discovery and Fox Corp, two of its biggest rivals, to corner the streaming sports market with an app called Venu Sports.
A federal judge has at least temporarily shut down the venture, who pointed out that “American consumers do not have to simply take [the joint venture’s] word” that a Triforce of business giants wouldn’t lead to price fixing.
At least Disney can currently get away with offering a streaming bundle that includes Disney+, Hulu, and Warner Bros. Discovery’s Max, similar to how it’s perfectly normal for Taco Bell to offer a combo meal of a chalupa, KFC chicken fries, and a McDonald’s Big Mac.
Related: Disney Reveals New $42.99 Pricing Structure for Streaming Venture in Effect This Fall
According to Deadline, Disney is committed to offering a greater variety of streaming bundles to consumers and working with its direct competition to do so.
Disney senior vice president of strategy and business development Nami Patel recently told the RTS London Convention that the Disney+, Hulu, and Max bundle is “working really well” and leading to more precious engagement time on all of the streaming services.
Furthermore, Nami Patel says Disney is open to collaborating with its rival companies more and that “Partnerships will always be a key benefit to consumers, and I think we’ll see more and more of that.”
Disney must like dealing with antitrust lawsuits because it can’t seem to stop tempting them.
Do you think that it is an acceptable business practice for companies in competition to work together?