- This topic has 1 reply, 2 voices, and was last updated 8 months ago by
.
-
Posts
-
Disney’s Double-Edged Sword: Streaming vs Box Office at the Cost of Franchise Fidelity?
Disney’s strategy of acquiring major franchises and shifting focus to streaming has been a double-edged sword. The acquisitions have brought significant financial returns and expanded Disney’s content portfolio. However, the management of these franchises has sparked debate among fans, with some feeling that the properties have been mismanaged or underutilized.
Disney’s acquisitions of Lucasfilm and Marvel Studios have been financially successful, according to CEO Robert Iger, with The Walt Disney Company seeing 2.9 times and 3.3 times return on investment respectively. However, the management of these franchises, particularly Star Wars, has been contentious. While the Star Wars and Indiana Jones franchises have generated nearly $12 billion in value for Disney, some fans feel that the company has mismanaged these properties. This sentiment is particularly strong with the release of shows like “The Book of Boba Fett” and “Obi-Wan Kenobi,” as well as divisive films like “The Last Jedi” and “The Rise of Skywalker.”
Disney’s acquisition of 20th Century Fox has added to its portfolio of content, but there is a sentiment that these properties are underutilized. The company’s strategy of not licensing Star Wars, Marvel, or Pixar content to Prime Video or Netflix could be seen as a missed opportunity for additional revenue.
The shift to streaming has sparked debate. While Disney+ has seen remarkable growth, there are questions about whether the company could have recouped more of its investments if it had continued to focus on theater releases. The impact on merchandise sales and the potential revenue lost at the box office are also factors to consider.
Disney’s overall investment in Pixar, Marvel, Lucasfilm, 20th Century Fox, and Hulu was substantial. While Disney+ has seen remarkable growth, reaching 164.2 million subscribers in 2023, it’s worth considering whether the company has fully recouped its investments. The shift to streaming may have also impacted merchandise sales, with fewer Star Wars and Marvel products found on store shelves.
Disney’s Theme Parks & Resorts are another major source of revenue, which could potentially be impacted by the shift in focus to streaming. If less revenue is coming in from box office sales, this could potentially affect investment into the Parks.
In conclusion, as a Walt Disney Company shareholder since 1996 and Disney+ subscriber since 2019, I have two suggestions for CEO Bob Iger and the creative heads of Disney Animation, Pixar, Marvel, Lucasfilm & 20th Century Studios:
- Remember who your audience is and keep your social agendas to yourself!
- Think Blockbuster while focusing on quality over quantity.
The impact of Disney+ on both fans and Disney’s profits is multifaceted and complex. It’s a delicate balancing act between satisfying fans, managing franchises effectively, and ensuring financial success. The release of “The Mandalorian & Grogu” to theaters in 2026 will be a significant test of whether content originating from streaming can succeed on the big screen. As Disney continues to navigate this new landscape, it will be interesting to see how their strategies evolve.
I look forward to your JoulePepper rating of my JouleView about “Disney’s Double-Edged Sword: Streaming vs Box Office at the Cost of Franchise Fidelity?” and I’d love to read your comments in the JouleStream section, below. Let’s make it a discussion! Based on what I shared above, I give the business strategy of Disney to Invest in Streaming at the Expense of Box Office a 2 out of 5 JoulePeppers – it’s Cold!
About AppFlicks:
Join the AppFlicks community as either an AppFlicker Critic, JoulePepper Contributor or AuteurX Creator via our Login page. Once you do, at the JoulePepper Contributor level, you can not only rate everything via our Icy OR Spicy JoulePeppers, you can also comment on anything across the Website, vote in JoulePoll Polls and author your very own JouleView Reviews & JouleStream Forums.
Stay up-to-date with the latest Entertainment Buzz, check out our curated RSS feeds for News, Gossip, Trailers and Popular: Play (Games), Watch (TV Series / Films) & Listen (Music) across AppFlicks. Click, for more JouleView Programs Forums. To find a specific title, use Search from top-left dropdown menu.
Sources:
(1) The Book of Boba Fett | On Disney+. https://ondisneyplus.disney.com/show/the-book-of-boba-fett.
(2) Disney’s Acquisition of 21st Century Fox Will Bring an Unprecedented …. https://thewaltdisneycompany.com/disneys-acquisition-of-21st-century-fox-will-bring-an-unprecedented-collection-of-content-and-talent-to-consumers-around-the-world/.
(3) Disney and 21st Century Fox Announce per Share Value in Connection with …. https://thewaltdisneycompany.com/disney-and-21st-century-fox-announce-per-share-value-in-connection-with-71-billion-acquisition/.
(4) Disney Closes Its $71.3 Billion Acquisition of 21st Century Fox. https://www.thewrap.com/disney-finally-closes-its-71-3-billion-acquisition-of-21st-century-fox/.
(5) Disney Officially Completes $71.3 Billion Acquisition Of Fox. https://www.looper.com/148229/disney-officially-completes-71-3-billion-acquisition-of-fox/.
(6) Disney ends the historic 20th Century Fox brand – BBC. https://www.bbc.com/news/business-53747270.
(7) Disney Won’t License ‘Star Wars’, Marvel Or Pixar Content To Netflix. https://deadline.com/2023/11/disney-star-wars-marvel-licensing-netflix-1235597449/.
(8) Disney Will License Content to Netflix — but Not Pixar, Marvel, or Star …. https://www.indiewire.com/news/business/disney-license-content-netflix-not-pixar-marvel-star-wars-1234924514/.
(9) Indiana Jones & The Dial Of Destiny Box Office Loses Disney $100 …. https://screenrant.com/indiana-jones-5-movie-box-office-profit-loss/.
(10) Indiana Jones and the Dial of Destiny – Wikipedia. https://en.wikipedia.org/wiki/Indiana_Jones_and_the_Dial_of_Destiny.
(11) Disney will spend more on theme parks than Marvel, Pixar, and Lucasfilm …. https://bgr.com/business/disney-theme-parks-investment-surpass-marvel-pixar-lucasfilm-acquisitions/.
(12) Disney+ Statistics 2024 | Users, Revenue And Streaming. https://avada.io/articles/disney-users/.
(13) Star Wars Merchandise | Disney Store – shopDisney.com. https://www.disneystore.com/franchises/star-wars/.
(14) Disney Store | Official Disney Merchandise. https://www.disneystore.com/?gad_source=1.
(15) Star Wars Merchandise | Disney Store – shopDisney.com. https://www.disneystore.com/characters/star-wars/.
(16) Marvel Merchandise | Disney Store – shopDisney.com. https://www.disneystore.com/characters/marvel/.
(17) shopDisney | Official Disney Merchandise. https://www.sb001.shopdisney.com/.
(18) Disney And Epic Will Create An Online Theme Park With Star Wars, Marvel …. https://www.msn.com/en-us/news/technology/disney-and-epic-will-create-an-online-theme-park-with-star-wars-marvel-avatar-more/ar-BB1hZA78.
(19) New Star Wars Movies Announced as Disney Enters Agreement to Acquire …. https://www.starwars.com/news/new-star-wars-movies-announced-as-disney-enters-agreement-to-acquire-lucasfilm-ltd/.
(20) Disney and CEO Iger Get Backing of Proxy-Advisory Firm Glass Lewis in Battle Over Board. https://www.msn.com/en-us/money/companies/disney-and-ceo-iger-get-backing-of-proxy-advisory-firm-glass-lewis-in-battle-over-board/ar-BB1k6qzT.
(21) Disney Proxy Fight: Advisor Backs Bob Iger Board Nominees, Opposes Trian Partners, Blackwells Nominees. https://www.msn.com/en-us/money/other/disney-proxy-fight-advisor-backs-bob-iger-board-nominees-opposes-trian-partners-blackwells-nominees/ar-BB1k6QHu.
(22) Activist Investor Nelson Peltz Eyes New Push for Disney Board Seats. https://www.hollywoodreporter.com/business/business-news/activist-investor-nelson-peltz-disney-board-seats-1235612439/.
(23) The Book of Boba Fett | StarWars.com. https://www.starwars.com/series/the-book-of-boba-fett.
(24) The Book of Boba Fett | Disney Wiki | Fandom. https://disney.fandom.com/wiki/The_Book_of_Boba_Fett.
(25) The Book of Boba Fett (TV Mini Series 2021–2022) – IMDb. https://www.imdb.com/title/tt13668894/.
(26) Indiana Jones 5 Suffers Worst-Ever Box Office Losses in Franchise History. https://thedirect.com/article/indiana-jones-5-box-office-losses-franchise.
(27) Indiana Jones and the Dial of Destiny | Disney Singapore. https://www.disney.sg/movies/indiana-jones-and-the-dial-of-destiny.
(28) Disney Crosses $1 Billion at Global Box Office for 2023 – Variety. https://variety.com/2023/film/news/disney-box-office-billion-dollar-mark-avatar-2-1235528694/.
(29) Disney Q4 2022 Earnings: 235M Streaming Subscriptions – The Hollywood …. https://www.hollywoodreporter.com/business/business-news/disney-q4-earnings-streaming-suscribers-rise-1235257876/.
(30) Disney Just Passed Netflix In Total Streaming Subscribers – Deadline. https://deadline.com/2022/08/disney-just-passed-netflix-in-total-streaming-subscribers-1235089361/.
(31) The Walt Disney Company Announces Strategic Restructuring, Restoring …. https://thewaltdisneycompany.com/the-walt-disney-company-announces-strategic-restructuring-restoring-accountability-to-creative-businesses/.
(32) New Marvel, Star Wars, Pixar content for Disney+ streaming service. https://www.straitstimes.com/life/entertainment/new-marvel-star-wars-pixar-content-for-disney-streaming-service.
(33) Disney Acquisitions Under Bob Iger: Marvel to Star Wars – Variety. https://variety.com/gallery/disney-acquisitions-bob-iger-marvel-star-wars/.
(34) Disney CEO Bob Iger just got another backer in his proxy battle against Nelson Peltz. https://www.msn.com/en-us/money/companies/disney-ceo-bob-iger-just-got-another-backer-in-his-proxy-battle-against-nelson-peltz/ar-BB1k7aEZ.
(35) Disney’s feud with activist Nelson Peltz is heating up — why it matters …. https://finance.yahoo.com/news/disneys-feud-with-activist-nelson-peltz-is-heating-up–why-it-matters-for-bob-iger-162543518.html.
(36) Nelson Peltz Renews Disney Board of Directors Proxy Fight – Variety. https://variety.com/2023/film/news/nelson-peltz-disney-board-directly-to-investors-1235814618/.
(37) Here’s Everything That Disney Now Owns From Fox – Screen Rant. https://screenrant.com/disney-fox-deal-own-assets/.
(38) The Walt Disney Company To Acquire Twenty-First Century Fox, Inc …. https://thewaltdisneycompany.com/walt-disney-company-acquire-twenty-first-century-fox-inc-spinoff-certain-businesses-52-4-billion-stock/.
(39) Everything You Need to Know About What’s Coming to Disney+ | Disney News. https://news.disney.com/disney-plus-announcement.
(40) 20th Century Studios Creating 10 Movie A Year For Disney’s Streaming …. https://whatsondisneyplus.com/20th-century-studios-creating-10-movie-a-year-for-disneys-streaming-services/.
(41) Disney’s will spend more on theme parks than Marvel, Pixar, and …. https://finance.yahoo.com/news/disney-spend-more-theme-parks-marvel-pixar-lucasfilm-184801484.html.
(42) Disney to invest $30 billion in theme parks over next decade. https://www.msn.com/en-us/lifestyle/travel/disney-to-invest-30-billion-in-theme-parks-over-next-decade/ar-BB1jPHsp.
(43) Disney Company – ABC, Pixar, Marvel | Britannica. https://www.britannica.com/topic/Disney-Company/Continuing-expansion-ABC-Pixar-Marvel-Entertainment-and-Lucasfilm.
(44) Disney’s Most Notable Acquisitions Since Inception. https://quartr.com/insights/company-research/disneys-most-notable-acquisitions-since-inception.
(45) Fox, Disney close transformative $71.3 billion deal. https://www.foxbusiness.com/media/fox-disney-prepare-to-close-transformative-71-3-billion-deal.
(46) How Much Did Disney Pay for Star Wars, Marvel, Hulu, Pixar & Fox …. https://observer.com/2020/09/disney-buys-star-wars-marvel-fox-hulu-pixar-cost-box-office/.
(47) Getty Images. https://www.gettyimages.com/detail/news-photo/the-entrance-to-walt-disney-co-is-seen-from-west-alameda-news-photo/1233255230.
Image By: Bing Copilot Designer. My prompt was, “Create a movie poster that includes logos of Disney, Lucasfilm, Marvel, Pixar, Animation, 20th Century Fox, Star Wars, Willow, Indiana Jones, Hulu, Planet of The Apes, Alien, Avatar, arranged in visually appealing manner to attract clicks to blog post about Disney+ Streaming TV Subs vs. Disney Customer Box Office Revenue from Movie Theaters Please spell names of these brands and IPs accurately. Do not repeat use of name, logo or IP in film poster.”
- You must be logged in to reply to this topic.