Read the issue for debate on page 196 in Chapter 6 about how Disney is diversifying in order to take on Netflix. Disney is using major acquisitions and related actions to take on the new media challenge posed by Netflix, Amazon, and other streaming services. In taking charge of its own distribution and by purchasing 21^st Century Fox, Disney has taken bold actions to become a broadly diversified, vertically integrated media player. What is unclear is whether customers will see enough value to sign up for Disney’s services.

Disney is restructuring its media and entertainment divisions. (Links to an external site.)

Discuss these questions.

• Is Disney making the right decision to develop its own exclusive streaming system rather than using Netflix and other streaming services to deliver its content?
• Is the defection of Disney, Warner Bros., and Comcast from Netflix’s streaming services going to seriously harm Netflix?