The United States government gave the go-ahead for Disney and Fox, two of the biggest media conglomerates of all time, to merge three years ago. If there are any remaining free market advocates, they must have shouted, “Competition is dead, long live competition!” From behind a bush. As it went along, the regulator made it easy for the most astute screenwriters to make fun of it. Never before has there been a surfer as brilliant as the one featured in the final seasons of Bojack Horseman, a show that focuses on the entertainment industry.
One character in Season 5, after the actual merger, says the following about the new corporate behemoth: ABC, Trader Joe’s, Disney, Fox, AT&T, AOL, Time Warner, PepsiCo, Viacom, Halliburton, Skynet, Toyota, and Trader Joe’s. While the specifics may change in later episodes, the premise is always the same: AOL, Time Warner, PepsiCo, Viacom, Halliburton, Skynet, Toyota, Trader Joe’s, Philip Morris, Disney, Fox, AT&T, AOL, Time Warner, Pepsico, Viacom, Halliburton, Skynet, Joe’s Records, etc.
The basic gist of the joke is that, barring any island-dwelling classical economists, the world’s businesses have merged into an ever-expanding oligopoly, and capitalism is eating itself alive. Yes, the numbers back up the joke. A few days ago, we saw that the top 50 companies, disproportionately those involved in technology, control 28% of the global economy. That is why some nations, like the US, have dared to think about things like a worldwide corporate tax, which was previously unimaginable.
Disney is an important player in this plan. Although there are bigger and more monopolistic megacorporations, this one is more significant as a cultural icon than a multimillion dollar business. For a while now, Disney has been the leading source of ideas and stories for people all over the world, not just in the West. Its entrance into the streaming universe is arguably the most emblematic example of its capacity to influence consumption patterns and industrial trends, and it holds a majority stake in the cultural zeitgeist of our era.
It has done this for many different reasons. One of them is the systematic takeover of rival businesses. Disney owns what? Just to review. Marvel? Not at all! In its own right. Century Fox? In its own right. Who is National Geographic? Alternatively, it could have its own. Endemol, you say? In its own right. One of Netflix’s biggest rivals in the American market is Hulu. Sure thing. Two of the most popular US networks, ESPN and ABC? Very much so. Networks with a smaller audience, such as Vice or History? A portion of it is equity. Is GoPro? Through its wholly-owned subsidiary, Steamboat Ventures, as well.
Due to their enormous size, Disney’s holdings defy representation in a single graph. This is the outcome of TitleMax’s attempt at that.
If you were to ask most people to name the two most profitable film franchises of the last decade, Marvel and Star Wars, the answer would likely be Disney. It has a controlling interest in major companies across the board in the entertainment sector. Hollywood Records, Core Publishing, ABC, Marvel, Touchstone, Lucasfilm, and Pixar are all wholly owned by it. A&E, History Channel, Lifetime, and 80% of ESPN are owned by it, while 10% of Vice is also owned. In a nutshell, nearly everything.
Too far away to see names? Alright, let’s talk about the big names: Star Wars, the Muppets, Marvel’s Marvel Cinematic Universe, all the classic animated films (from Aladdin to Frozen), Pixar’s work (including the upcoming Toy Story 4), Indiana Jones, and even some long-lost, scripted franchises like Pirates of the Caribbean and the Chronicles of Narnia. I forgot about Grey’s Anatomy and the other ABC shows. On top of everything else, it has its theme parks, which are its bread and butter. Disney reported a profit of $59 billion last year.
Finally, in the spring of 2019, after years of negotiations, the merger with Fox was finalized, serving as the icing on the cake. When Disney acquired Fox, it got all of Fox’s audiovisual library, including 21st Century Fox, one of Hollywood’s great historical studios; Fox, Fox Sports, Sky in the UK and Europe, National Geographic; and 30% of Hulu, the US’s second most popular streaming service.
I can think of a number of series produced by Disney that come to mind when I hear the word “name”: The Simpsons, Alien, X-Men (including Dark Phoenix), Fantastic Four, How I Met Your Mother, and many more. The total value of the operation was seventy-one billion dollars. There has never been a time in the entertainment industry’s recent history when so little money was held by so few people. The empire is uncontrollable. There are already records from AOL, Time Warner, Pepsi, Viacom, Halliburton, Skynet, Toyota, Trader Joe’s, and Joe’s Records. Yes, it is Disney.
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