- Comcast's (CMCSA +0.2%) interest in tussling with Disney (DIS +0.4%) over Sky (SKYAY +0.1%) isn't just a "chess move," analyst Craig Moffett says, but could baseline a global over-the-top offering that could put the company squarely at the center of the growing space.
- As often, it's all about the content: “Sky brings with it a trove of exclusive content and rights that could be the basis of an OTT service with a genuine moat, capable of rivaling Netflix (NFLX -0.4%) itself,” he writes.
- Sky's not just a satellite distributor but has unique access to programming that includes Premier League soccer, Universal, Disney films and HBO, he mentions.
- And that could set up a "pan-European" or global direct-to-consumer service.
- Comcast has been down on the economics of out-of-footprint OTT but structural differences between the UK and U.S. could make Sky OTT offerings more profitable down the road, particularly considering the bigger scale, Moffett says.
- Now read: Netflix Short-Seller Citron Research Indicates Dip To 0, Opens Great Investment Window
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