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Disney is rumoured to be considering buying streaming service Netflix. That's the gossip on Wall Street, just a week after it was rumoured that Disney was buying Twitter. So we'll take it with a pinch of salt for now.

Nevertheless, market analysts say the move would make a lot of sense. William Power from analysts R.W. Baird wrote in a note to clients that if it wasn't Disney, he wouldn't be surprised if someone else snapped up the streaming giant.

He wrote "whether Disney, Apple or someone else, Netflix could become a target."

Disney already owns Lucasfilm (the studio behind the 'Star Wars' films), and sports broadcaster ESPN. According to Paolo Piscatory from CCS Insight, Netflix would be a "goldmine for Disney given its growing presence in online video." He added that it "represents a great channel for distributing the slew of Disney content around the world" and offers "plentiful opportunities to reach new audiences."

Ampere Analysis' Guy Bisson said the two companies would be a good fit because of Netflix's recent focus on creating original programming for children. "Netflix has been increasing originals for kids recently," he said, "and kids' content represents more than1 10 per cent of the library. Disney's demographic has been moving to SVOD (Streaming Video On Demand) and tablet viewing faster than any other."

Not all analysts were convinced, however.

Tony Wible from Drexel Hamilton, for example, told Bloomberg: "You've seen some takeover chatter popping up, but Netflix hasn't shown it wants to be acquired."

Will it happen? Stay tuned, we'll bring you more news as it comes...

Source: MarketWatch, Broadband TV News, TrustedReviews, Bloomberg

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