Disney has been hit harder than most studios by the global pandemic. Our focus is on the movies that have been delayed, including the loss of an entire year of Marvel, but their other outside ventures including sports and amusement parks have been devastated. However, if there has been one positive to emerge from this it has been Disney+, as the streaming service has risen to prominence during the year. Rather than fight the winds of change, Disney has decided to lean into it.
A major internal restructuring is underway so Disney can make streaming options their primary focus. Put in simple terms, The Walt Disney Co. will combine movie studios, sports content providers, entertainment group, and direct-to-consumer products under one banner.
The announcement was made by chief Bob Chapek, who says the moves will allow Disney to put increased energies into Disney+, Hulu, and ESPN+ at a time when streaming content has become integral to the lives of consumers.
“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value,” Chapek said. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it.”
It’s hard to argue with this strategy. Even as some theaters are reopened, consumer confidence is at an all-time low. Few are willing to risk their safety just to see a movie, while sports and amusement park venues are largely closed to the public. Disney has been steadily moving more theatrical content to Disney+ and reaped the rewards. Mulan was released on Disney+ for a $29.99 premium fee and did extremely well in a tight timeframe. Other projects once set for theaters, such as Artemis Fowl and Pixar’s Soul, are streaming exclusives.
Not to mention, Disney+ is pretty much the only home for Star Wars content with The Mandalorian, and the only place to get Marvel right now with WandaVision and other shows.
So the question is whether this will be a complete exit from the theatrical model? Could we eventually see the entire MCU exclusive to streaming? I think if Disney put all of their marketing muscle behind it, they could eventually see the same financial gains in home release, given that it’s a more cost-effective platform. It would, probably, be the fatal blow to a theater business that is hanging on by a thread, however.
