Disney Investor Day Announcements All Hype, No Way to Profit
By Jessilyn Lancaster, Managing Editor
Though Disney’s investor day came with significant fanfare and major announcements, one key ingredient to the Disney secret sauce was missing: Profit.
Among the announced projects are a Buzz Lightyear origin story from Pixar, and spin-off series based on CARS, BIG HERO 6, MOANA, and PRINCESS AND THE FROG.
It seemed like welcome news, and Disney stocks surged.
There’s only one problem – can Disney make any money off these titles if they spend less time in theaters and more time on Disney+. It’s simple economics, if Disney offers all their content for a low monthly subscription of $6.99, they lose out on a significant portion – if not all – of their profit for each movie. A family and friends can watch lots of Disney, Marvel and Pixar movies each month, that they would have to pay around $10 per person each to watch at the theater.
Take the 2020 version of MULAN as an example. The movie was one of the first to be delayed and eventually completely removed from a theatrical release in the United States due to the Coronavirus pandemic. MULAN supposedly cost Disney $200 million to make. To date, it’s grossed less than $70 million worldwide, leaving Disney in the hole for more than $130 million.
Now why would they want to apply that same treatment to much of their future products?
What’s unfortunate, still, is that other studios appear to be following suit.
Warner Bros. recently announced that all their titles slated for 2021 would debut on the HBO Max streaming service the same day they would appear in theaters. This will wreak havoc on a struggling industry that invested so much into these movies.
To recoup the costs, DUNE production company Legendary Entertainment is debating suing Warner Bros. over the decision.
As Variety reports:
Legendary financed a significant portion of “Dune,” which cost roughly $175 million, and “Godzilla vs. Kong,” which carries a price tag around $160 million. Yet the company was largely kept out of the loop that their films would be included in Warner Bros.’ plan to send 17 films — its entire 2021 slate — to the subscription streaming service and any open movie theaters. …
Part of Legendary’s frustration is that despite largely bankrolling “Dune” and “Godzilla vs. Kong,” the production company didn’t have much of a say in how its buzzy titles would be released. Moreover, the company felt that Warner Bros. wasn’t being transparent with its intentions. Months ago, Netflix had discussed a possible sale of “Godzilla vs. Kong” for a hefty $250 million but WarnerMedia, the parent company of Warner Bros., blocked that arrangement.
The writing is on the wall for theaters and for studio profits. The model adopted during the pandemic is far from sustainable. A crash is coming that will change the industry as we know it.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
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