Disney Film Release Tack Could Cut Viewership: Parks

Debuting new releases on Disney+ cuts off potential viewers who aren’t current subscribers and don’t pick up the service and pay the additional Premium Access fees, blogged Parks Associates analyst Liam Gaughan Thursday, commenting on Disney’s three-pronged strategy for releases via theaters, Disney+ and Premium Access. Parks data shows 44% of viewers are unlikely to subscribe to an online video service for access to an in-demand title, Gaughan said. Referencing comments Disney CEO Bob Chapek made on a July earnings call (see 2108130027), Gaughan said day-and-date release offers viewers more flexibility in viewing options, but it’s not clear at what loss to revenue. “Multiple viewers who could have purchased individual movie tickets may have ended up watching Black Widow together at home, depleting the potential box office revenue,” he said, citing Black Widow’s $367 million global box-office receipts through late August plus $125 million in streaming and download retail receipts and noting the film is one of the lowest grossing Marvel Studios titles released by Disney. A shortened window for Shang-Chi and the Legend of the Ten Rings, which premiered Friday, “should increase revenue from both anticipating viewers and casual moviegoers,” said Gaughan. A diversified approach lets the company continue experimenting with theatrical and transactional windowing as it observes changing viewing habits, he said. Disney didn't comment Friday.