Disney (NYSE:DIS) could drive three more nails into the coffin of movie theaters if it follows through on taking a handful of potential blockbusters straight to its Disney+ streaming service.
Industry site Deadline reported Thursday that Disney is considering launching Cruella, Pinocchio, and Peter Pan and Wendy on its popular streaming video service rather than debuting them through a theatrical release.
Because Disney has largely been one of the more theater-friendly studios, this change in tactics could have dramatic implications for AMC Entertainment Holdings (NYSE:AMC), Cinemark Holdings (NYSE:CNK), and other theater operators.
Image source: Getty Images.
Deadline says a final decision hasn't been made, and it's unclear whether Disney will make the films free for all Disney+ subscribers or will make them a Premier Access feature as it did with Mulan, which required even subscribers to pay to view the movie.
Disney might even do a simultaneous theater and streaming launch, as AT&T's (NYSE:T) Warner Bros. studio announced it would do when it releases Wonder Woman 1984 to both cinema and HBO Max on Christmas Day.
Studios are obviously in a bind since they need to recoup the expenses to make the film, and bringing tentpole films to their in-house channels can give the streaming services a higher profile to attract subscribers. But doing so starves theaters of content.
Disney+ has taken off like a rocket since its debut a year ago, racking up almost 74 million subscribers, one of the fastest launches ever for a streaming service. Putting more blockbusters on it could bring in even greater numbers of viewers, but it could be the death knell for theaters.
The Link LonkNovember 20, 2020 at 09:44PM
https://www.fool.com/investing/2020/11/20/disney-might-send-3-major-films-direct-to-streamin/
Disney Might Send 3 Major Films Direct to Streaming, a Report Says - Motley Fool
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