Disney announced a structural reorganization this week. There is a stronger focus on series for streaming services such as Disney +, a severe blow to the cinema sector that is severely affected by the corona crisis.
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The decision comes “because of the incredible success of Disney + and our plans to get to consumers faster,” said CEO Bob Chapek. For example, series and films are ‘made and delivered in the way the viewer prefers them’. It’s not an unexpected move: Disney is already releasing two films exclusively through its streaming service this year. In front of Mulan subscribers now have to pay 21.99 euros extra, even though that movie will be free from December. In Soul, another blockbuster from Disney’s animation studio Pixar, comes out on Disney + around Christmas.
It’s a painful decision for the cinema industry. Blockbusters like James Bond, Dune in The Batman are delayed, and the move to streaming is one step closer to possible bankruptcies. “By the time some studios decide that the time is right to release their films, it may well be too late for many European cinemas,” said Unic, the association of European cinemas.
Shares are rising
Investors are enthusiastic about the decision. Shares climbed about 3 percent on Monday – when the news was announced. And that while the American Disneyland theme parks have to lay off some 28,000 employees. With their streaming move, it looks like Disney can make up for the stock market loss of the past year: on January 1, the stock was at $ 145, in March it fell to $ 84, but now it has already risen to $ 129. With the move, Disney also hopes to face its biggest streaming competitor Netflix.
Disney includes Pixar, but also Marvel (known for superhero films), Lucas films (Star wars) and 20th Century Studios (formerly 20th Century Fox), one of the largest film studios in the world. It is still unclear to what extent their productions will be released exclusively or not on Disney’s streaming platforms. In addition to Disney +, that is also Hulu and ESPN +. Those two are not yet available in Belgium, although Disney would consider launching Hulu here in 2021.
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