Find us @

Feature

Disney and Netflix have been jeopardized by Comcast’s content

Three companies had their intellectual-property rights infringed by amusement-park owner Six Flags.

Published

on

Three companies missed out on the most valuable remaining property in an era when IP rights drive the entertainment industry.

Buy Walt Disney Stock (DIS) Now Because it owns some of the world’s most popular intellectual property, The Walt Disney Company Report has been able to quickly launch an incredibly successful streaming service and dominate the box office. Company spent $4 billion on LucasFilm (“Star Wars”), $3 billion on Marvel, and $7.4 billion on Pixar.

Former CEO Robert Iger’s deals (especially with Marvel) were not well-received at the time, but they have since proven to be incredible steals. With this new model in place, Disney can produce films with high confidence that they will be commercial successes when they are released.

It’s a big gamble to make a movie out of a brand-new concept that costs $300 million. If the same budget were used to produce a Marvel superhero film, a new “Star Wars” film, an animated film from Pixar, or a film based on classic Disney characters, almost all of the risk would be eliminated.

The reasoning is valid for any form of streaming or entertainment, including amusement park rides.

Customers are familiar with “Star Wars,” Marvel, Pixar, and Disney’s beloved characters. Guests are interested in seeing these beloved characters’ continued adventures on Disney+, taking photos with them in parks, playing videogames featuring them, and, of course, riding rides based on these properties.

As a competitor to Disney, Comcast (CMCSA) – Obtain Comcast Corporation Class A Common Stock Report may not have the same library of movies and TV shows as Disney, but it does own some pretty big franchises of its own, like “Fast & Furious,” “Minions,” “Secret Lives of Pets,” and its classic monster characters. Through these intellectual properties, the company is able to produce movies, create attractions for its theme park, and establish a streaming service.

As a result, any currently available A-list real estate is fetching astronomical prices due to the model’s undeniable success. For this reason, it’s puzzling that Disney, Netflix, or Comcast didn’t purchase the market’s most valuable intellectual property when it was sold.

Organizations like Disney, Netflix, and Comcast Drop the “Lord of the Rings” Ball

Few options exist for content on par with Marvel, “Star Wars,” or even “Minions,” which are all owned by major conglomerates. Shop on Amazon (AMZN)! Because of his popularity in videogames but lack of exploitation in other mediums (like television and theme parks), Amazon.com, Inc. Report has acquired the rights to the James Bond brand.

Now that 007 is off the table, the biggest franchise that Disney, Netflix, or Comcast could have purchased is J.R.R. Tolkien’s literary works, most notably “The Lord of the Rings” and “The Hobbit.” Tolkien’s most well-known works are among the few properties that instantly evoke a positive association, and there is hardly any content that is even remotely comparable in popularity that does not have a theme park tie-in.

Envision if Disney World or Universal Studios, both owned by Comcast, added a “Lord of the Rings” land.

Netflix, Inc. (NFLX) – Order Netflix, Inc. Obviously, Report lacks theme parks, but the company does have a budding games division that could have benefited from a well-known property; it could have licensed the theme-park rights to the highest bidder.

Unfortunately, that did not transpire. Instead, the Swedish gaming company Embracer reportedly paid $2 billion for the rights to Tolkien’s most famous works.

The Three Amusement Parks: Disney, Comcast, and Netflix A Mistake Was Made

Tolkien products for card games and board games were licensed by the Middle-earth Enterprises division of Saul Zaentz Co., from whom Embracer has a relationship.

It may have gotten a leg up on the competition because of that, but it’s hard to believe that Disney, Comcast, or Netflix wouldn’t have made a higher offer. It appears that did not occur.

Since Amazon already owns the television rights to “The Lord of the Rings,” no other company has an immediate incentive to pay up for the privilege of using Tolkien’s works on their streaming services. However, Disney or Comcast could have justified the purchase based solely on the theme park rights.

However, “Harry Potter” is the flagship attraction at all of Comcast’s U.S. theme parks, and the company licenses the rights to use the name rather than owning the intellectual property outright. Marvel and “The Simpsons” characters are licensed by Disney for use in the Florida theme parks, and Disney receives a licensing fee. Without Epic Universe, the company would not have been able to replace Harry Potter at any of its existing parks, but it could have updated some of its other portfolio attractions with “Lord of the Rings.”

In addition to providing Disney with a much-needed fantasy/magic franchise, a “Lord of the Rings” land would also benefit the company in other ways. Florida’s Hollywood Studios, Animal Kingdom, or even Magic Kingdom would be perfect settings for this.

The biggest mistake here may have been made by Netflix. It could have licensed the IP to Disney or Comcast for the theme parks and likely recouped its investment if it had paid the estimated $3 billion to acquire Tolkien’s rights, then produced movies, games, and eventually television shows based on the IP.

Netflix, Comcast, and Disney will be kicking themselves for a very long time after losing out to Embracer.