‘Star Wars,’ ‘Pinocchio’ and More as Disney Leans Sharply Into Streaming
AdvertisementContinue reading the main storySupported byContinue reading the main story‘Star Wars,’ ‘Pinocchio’ and More as Disney Leans Sharply Into StreamingThe company unveiled a blitz of new projects on Thursday, including 10 series from the “Star Wars” universe for Disney+, which now has 87 million subscribers. Hulu will also get a major content boost.The Disney+ hit “The Mandalorian” will soon have two spinoffs.Credit…Disney Plus, via Associated PressDec. 10, 2020Updated 7:36 p.m. ETLOS ANGELES — In February, Robert A. Iger stepped down as Disney’s chief executive and became executive chairman, saying he would decamp entirely in 2021. But he saw himself as having one final task. “I want to make sure that our creative pipelines are vibrant,” Mr. Iger said in an interview at the time. “That is very, very important, especially as we roll out Disney+ around the world.”On Thursday, as part of a four-hour investor presentation focused on the future of Disney’s streaming business, Wall Street got a sense of what Mr. Iger was talking about. Never have Disney’s content engines been turbocharged like this.Disney unveiled a blitz of new “Star Wars” projects, including 10 television shows — two of which will be “Mandalorian” spinoffs, another that will follow C-3PO and R2-D2 — and a new theatrical film, “Rogue Squadron,” directed by Patty Jenkins (“Wonder Woman”). Ms. Jenkins will be the first female filmmaker in the 43-year history of the “Star Wars” movie franchise.Patty Jenkins will direct a new “Star Wars” movie called “Rogue Squadron,” becoming the franchise’s first female filmmaker.Credit…Mike Coppola/Getty Images For TNTIn the coming years, 15 movies will be released directly on Disney+, with new installments in the “Ice Age,” “Night at the Museum,” “Diary of a Wimpy Kid,” “Sister Act” and “Cheaper by the Dozen” franchises on the way. Amy Adams will star in a sequel to the 2007 musical “Enchanted,” while Tom Hanks will appear as Geppetto in a live-action “Pinocchio.” Multiple sports dramas fill out the slate, including one based on the life of the Milwaukee Bucks star Giannis Antetokounmpo.National Geographic, another Disney division, also announced a flurry of Disney+ shows, including an endurance-focused series starring Chris Hemsworth (“Thor”) and directed by the Oscar-winning Darren Aronofsky.Bob Chapek, Disney’s new chief executive, disclosed that Disney’s flagship streaming service had 87 million subscribers as of Thursday, nearing the high end of its initial five-year goal after only a year in operation. Disney+ has benefited from a low monthly price ($7), a smash hit (“The Mandalorian”) and the coronavirus pandemic, which has prompted Disney to reroute theatrical releases like “Hamilton” to the service and created spiking demand from homebound consumers. (A significant percentage of Disney+ subscribers — nearly 30 percent — come from India, where the monthly subscription price is much lower.)Wall Street has started to value Disney less as an old-line entertainment company with challenged businesses (traditional television networks in secular decline, theme parks closed or operating with coronavirus-forced capacity restrictions) and more of a streaming colossus in the making. Disney shares reached roughly $160 in after-hours trading on Thursday, an all-time high.The out-of-the-gate success of Disney+ has generated much of the excitement. Many analysts initially thought it would be lucky to achieve 55 million subscribers within five years. Having missed the mark in such epic fashion, Wall Street is now more willing to give Disney the benefit of the doubt.But daunting challenges lie ahead. Building streaming services is monstrously expensive, and Disney now has four: Disney+, Hulu (39 million subscribers), ESPN+ (11.5 million) and Star+, an overseas version of Hulu that will roll out in Latin America in the coming months. Losses in Disney’s direct-to-consumer division totaled $2.8 billion in the company’s 2020 fiscal year. The company has given up billions of dollars in licensing fees as it has amassed library content on Disney+ rather than selling to outside companies like Netflix.Disney also faces an increasingly competitive streaming environment. HBO Max, CBS All Access (soon to be renamed Paramount+), Peacock, Apple TV+ and the recently announced Discovery+ are determined to make inroads. Netflix and Amazon continue to pour billions of dollars a year into original programming.A significant portion of the presentation was dedicated to Star, which will be stocked with programming from Disney properties like ABC, FX, Freeform, Searchlight and 20th Century Studios, which Rupert Murdoch sold to Disney last year. In Latin America, Star+ will roll out as a stand-alone service in June and also include some ESPN coverage of sporting events. In Europe, Canada, Australia and several other markets, Star+ will be integrated directly into Disney+, which will add a vast amount of more mature programming to the service (“Deadpool 2,” the “Family Guy” cartoon series), allowing Disney to potentially reach an audience far beyond families.The addition of a Star channel inside Disney+ will also justify a price increase of roughly 28 percent, to about $11 a month.New programming is also headed to the Disney-owned Hulu, including the series “Nine Perfect Strangers,” a mystery from David E. Kelley and starring Regina Hall, Nicole Kidman and Melissa McCarthy — what Dana Walden, chairman of entertainment for Walt Disney Television, called “juicy, can’t-turn-it-off content.” The Disney-owned FX, which funnels its programming to multiple Disney streaming services, is working on a television spinoff of the “Alien” movie franchise and a retelling of “Shogun,” the James Clavell saga, along with a half-dozen other high-profile projects.As part of the presentation, Disney discussed its evolving approach to movie distribution. The coronavirus pandemic has forced Disney and other studios to push back the releases of big-budget films — more than half of the cinemas in the United States are closed — and reroute others to streaming services. In September, Disney debuted “Mulan” on Disney+ as part of a “premium access” experiment, charging subscribers $30 for indefinite access. “Soul,” the latest Pixar film, will arrive on Disney+ on Christmas Day for no additional cost.Disney debuted “Mulan” on Disney+ as part of a “premium access” experiment, charging subscribers $30 for indefinite access.Credit…Jasin Boland/Disney, via Associated PressDisney said that some movies would continue to arrive in theaters for an exclusive play period. Others will follow the “Mulan” model; a coming animated film, “Raya and the Last Dragon,” for instance, will be made available on Disney+ in March for a premium price.AdvertisementContinue reading the main story More