Tag: Mulan

  • Taking a Closer Look at Disney+’s Pixar Premier Access Strategy

    Taking a Closer Look at Disney+’s Pixar Premier Access Strategy

    Disney has entered the streaming market. It has been a resounding success and has already surpassed 100 million subscribers. It saw an impressive boost in subscribers after the release of Pixar’s Soul in December. As such, it had already passed 90 million, and Marvel Studios’ WandaVision was only around the corner. Sadly, it seems that the pandemic has no end in sight. So, Marvel Studios and Disney decided to drop Black Widow through their Premier Access service in July. It joins Mulan and Raya and the Last Dragon, which could be purchased for an additional fee of $30 bucks to watch them three months early. The pricing has been questionable at times. It would at least make the films available for those still cautious about visiting cinemas.

     

    Black Widow' Super Bowl Trailer Shows Natasha's Superhero Family - Variety

     

    Now, it is understandable that Disney would want to make their cash back some way. It would seem that the streaming service won’t cover the costs of these massive blockbusters. Yet, Disney has also made some contradictory decision with their properties that makes the Premier Access debacle strange. The entertainment behemoth decided to release Soul for free on the service and is following-suit with Luca. Oddly, both Pixar productions get the same treatment, while Cruella gets the Premiere Access treatment. According to The Hollywood Reporter’s Matthew Belloni, Pixar is feeling it.

    It’s a strange decision that these properties are the only ones getting this type of treatment. There is probably a financial reason for it, but, understandably, Pixar employees aren’t thrilled by this. Soul was an emotionally gripping tale that would’ve left quite the impression in theaters worldwide. Luca would be sure to do the same, but there is no mention of a simultaneous release in theaters. Pixar is, by far, one of the biggest players in the animation market. So, the release of Raya and the Last Dragon but not Luca through Premier Access seems odd without this decision getting clarified by Disney.

    So, why would they decide to do this? Well, it probably is connected to two factors. On the one hand, Soul got released after the first attempt with Mulan seemed to falter. They decided to bite the bullet and hope that it would raise the overall subscription numbers. As we learned, it did manage to do that. Now, they must’ve believed that they can make up the production costs through the increase in subscribers. Yet, if Raya proved that the service could be profitable after all, it seems strange to sideline one of the most recognizable brands in the market.

     

    Watch the first trailer for Pixar's Luca - The Verge

     

    There is probably a reason for this decision, but only Disney can offer the complete picture. As it is now, it seems an odd choice to push the Premier Access brand as a showcase of their most-valued productions. If things “normalize,” we might never see this branding again. It was created as a reactionary option during the pandemic until theaters could open again. Godzilla vs. Kong has shown that some international markets have seen a resurgence in the Box Office, but it will still take some time before we’re talking about what we’ve seen before the pandemic started. Either way, it feels like a disservice to Pixar’s hard work and standing in the industry to not put it on their Premier Access selection. No matter why they took this route, the bigger question remains: what could be the fallout of this business decision? There is a possibility that the demoralized employees are just the first cracks to appear in the relationship between Pixar and Disney moving forward.

    Source: Twitter, The Verge, Digital TV

  • Warner Bros. & Sony’s “Only in Theaters” Strategy Facing a Digital Revolution

    Warner Bros. & Sony’s “Only in Theaters” Strategy Facing a Digital Revolution

    2020 hasn’t been kind to anyone. COVID has made the life of many difficult and halted many prominent industries. The film industry has certainly been hit hard. Not only have all their productions been halted, but they also can’t air any of their finished films. Most tentpole productions have budgets that go beyond the $200 million mark. Every release past March was postponed either until the fourth quarter or even for a full year into 2021. September was the month that everything should change. Cinemas were slowly opening again. Tenet was promised to reignite the Box Office again.

    Sadly, it brought in just $20 million and is barely scraping by in the States. We’ve already seen the results of this underperformance. Now, Warner Bros. has postponed Wonder Woman 1984 to December. This is just a week after Dune premieres which would cannibalize their own production. Sony is deciding to wait for COVID to be a thing of the past, which is still unknown. On the other hand, Disney is testing the waters with a brand new Premium Access option on its streaming service. Universal was the one that kickstarted a digital revolution by releasing films on video-on-demand.

    Delaying the Inevitable

    It’s more than just a question of time at this point. Even as cinemas open, people will be a bit cautious about returning to a cramped dark space. Even countries that reopened cinemas are now changing direction. Here in Austria, you have to wear a mask as of next month while watching a film. This state-mandated rule will just encourage people to stay home and not take the risk. There is the discussion point at what point can one even consider it to be “safe” to return to cinemas. Sony’s strategy could drag out well into 2021. This could go as far as delay the third Spider-Man‘s December release. Warner Bros. might also go mad by constantly delaying their productions without an end in sight.

    Production budgets are borrowed money. The longer they drag out the releases, the more expensive it might become. Most 2020 productions will have to take some loss into account. We won’t be seeing any record-breaking releases anytime soon. In the end, Universal and Disney might be on track for the best strategy right now. Smaller production companies also combined physical and digital releases at this point so they don’t have to market each delay. Marketing budgets would continue to grow as they’d have to rework every trailer. At this point, it is all about cost minimization. Even if 2021 opens up the floodgates, it will be so packed with new productions they will cannibalize each other. There is a good chance, film productions won’t recover until 2022.

    Facing a Digital Future

    AMC already had issues with Universal’s strategy by banning them temporarily from cinemas. People criticized Disney+’s pricing for Mulan which was around $30. If you compare it to the $20 rental fee for Bill & Ted Face the Music, it’s surprisingly reasonable. Plus, Disney+ focuses its marketing towards families, so a four-headed family gets off pretty cheap than paying upwards of $40 for tickets. Plus, they can save money by avoiding the concession prices. For some, the price isn’t that bad. Disney might not just be able to cover costs but even turn in a profit. It not only boosts their subscription numbers but also makes up for the Box Office loss it would’ve faced otherwise. We can expect films like Black Widow to be added to Disney+. If you are interested in a deeper analysis to check out Edward’s analysis by clicking here.

    Warner Bros. and Sony are simply postponing the inevitable. When we were discussing the implications of the WW84 delay, Charles made the good point that Disney might be able to dominate the market. They would be the only company to make their tentpole releases available to everyone without any competition. As such, they don’t have to worry about cannibalization. Even as AMC tries to lawyer up against these strategies, it’s the only option to keep the industry alive. If production companies can’t cover their costs, there won’t be any films to show in empty theatres. Believe me, I would want nothing more than to return to a cinema again but it’s still a massive risk. Right now, Disney and Universal have a better strategy and it wouldn’t be surprising for the others to follow suit. From this perspective, Sony and Warner Bros. are going to face a very rough 2021.

    Source: CNet, The Verge, IndieWire, Forbes