Yesterday Disney CEO Bob Chapek announced a restructuring in the way the Walt Disney Company does business. In this announcement, Disney will be focusing hard on its streaming service, Disney+. As of this writing, Disney+ has over 60 million subscribers. The monthly cost is $6.99 so you can do the math. What does this really mean not only for Disney but the industry as a whole?
The COVID19 Pandemic has seen many casualties. One such business that may be on life support is movie theaters. Movie theaters across the country have for the most part remain closed. Hollywood has pretty much put a halt on releases because of it. Can’t put out films if no one is allowed to go see them. Over the last decade or so the film industry was a regular cash cow for Disney. The movie Box Office has been dominated by everything Disney. Whether it’s the Marvel films, the Star Wars sequels, Live Action remakes or animated features, it’s all gold.
The success of these films has almost singlehandedly funded future projects and expansion of Disney. No longer were the theme parks and merchandise the main revenue stream. If anything, the theme parks and the movie business became partners. The opening of Galaxy’s Edge and the soon to be opened Avengers Campus in Disneyland are direct results of the properties Disney now owns that have generated billions for the company.
Now Disney may not be the only player in town but they’re probably the biggest. If the focus is on their streaming service, I could see a shift in how new film projects are released. Imagine if Disney decides to release Black Widow on Disney+. They could charge a one-time fee like they did with Mulan. Or they could double or triple the monthly subscription cost with the payoff being the ability of watching highly anticipated films from the comfort of home. It’s a realistic possibility.
For me, nothing replaces a packed theater on opening night. I love the energy. Being there when the theater erupted when Captain America held Mjolnir or remembering how defying the silence was when Tony Stark died. You’re not going to get that from the comfort of your home. Having worked at a movie theater, I know theaters don’t make their money at the box office. It’s all at the concession stand. Nonetheless, in order for theaters to survive, movies need to be released.
A good summer or holiday season will keep theaters thriving. I have friends and family who call the theater their home so this is quite personal for me. My fear today is if streaming proves to be an economical benefit to Disney, how long before other companies follow suit? At the end of the day, it’s about the bottom line. Films don’t need theaters to be successful. But theaters need films.
May the Dork be with you,
JPB
The Dork Knight
