The Walt Disney Company
Disney's CEO will be retiring in 2018, and Netflix CEO Reed Hastings appears to be a perfect replacement. REUTERS/Eric Thayer

Netflix is one of the largest and most successful streaming services worldwide, and now it looks like it could be acquired by something bigger. The latest rumor going around is that Disney is considering buying the streaming giant.

Disney has its sights on Netflix because its current ESPN subscriber numbers are declining and more people are now cutting cable subscriptions in favor of VOD streaming and other online subscription services. Another reason why Disney is considering to get Netflix is due to the $85 billion merger of AT&T and Time Warner, according to TechCrunch.

Netflix surpassed Wall Street’s expectations when it reported that it has passed $2 billion in quarterly sales last month. The streaming giant also currently has a total of 3.57 million subscribers worldwide beating its 2.3 million forecast. Despite its huge success this year, its subscription-based business model might simply not be enough to sustain the company long term, and this is why it needs a buyer as of the moment, according to The Independent.

If Disney decides to buy the streaming service, it would help Netflix better compete with other companies that are able to generate revenue from multiple business models like AT&T, Amazon, Google, Verizon and Apple. Disney would also be able to gain a solid foothold on the over-the-top content market and gain access to Netflix’s invaluable data platform.

A Disney acquisition would also open up the huge possibility that Netflix will become the only streaming service to exclusively deliver Disney-owned content. After all, Netflix already has exclusive Disney content thanks to the Marvel television series “Daredevil,” “Jessica Jones,” “Luke Cage” and the upcoming “Iron Fist” and “The Defenders.”

The addition of all of Disney’s content, including its library of animated films and “Star Wars,” would make Netflix far more appealing to customers. This would also help in combating AT&T's planned $35 a month DirectTV subscription service which will be able to offer live television channels.

The possible acquisition is also considered to be at the opportune time, given that Disney’s current CEO, Bob Iger, will be retiring in 2018. Disney has no current candidate to replace Iger yet, and it’s quite possible that the media giant is also eyeing Netflix CEO Reed Hastings for the job.