Disney has issued a press release saying “Moana 2” was streamed 27.3 million times on Disney+. This was the biggest record since “Encanto” in 2021. But is this good news or bad news for Disney?
While “Moana 2” did great in the theaters, making $1.05 billion worldwide, other films haven’t had the same success with potential customers.
Disney has a box office problem.
Last year, Disney did win at the box office with “Inside Out 2” and “Moana 2,” but many recent releases have been misses rather than hits.
Some point to Disney+ as the cause. Many potential theater customers are waiting for Disney, Marvel, Star Wars, and even Pixar content to come to Disney+ instead of going to theaters, with a few exceptions like “Moana 2.”
It seems people are only going out for “event” films. “Snow White” is tracking to be more like “Captain America: Brave New World” at the box office than “Moana 2.” I have seen many discuss how they would rather wait for the film to come to Disney+.
While Disney is celebrating the big debut on Disney+, it may make investors worry about theatrical releases losing their luster.
Disney will likely credit “Moana 2” and “Daredevil: Born Again” with any increase in Disney+ numbers for March. However, the company is also offering a $2.99 deal on the service for four months. Those offerings were likely a draw to get people to try the service or re-subscribe. If this is the case, many of the subscriptions gained could be at a wholesale price.
Theatrical releases would likely generate more profit than Disney+. A family of four going to see a film in theaters might spend $25-$40 to see a film, as opposed to a $2.99 spend for the entire family and anyone else they invited over to watch on Disney+.
Investors may see a problem in this, especially if films do poorly theatrically but pick up viewership when added to Disney+.
What is the solution?
Disney is going to need to focus on more “must-see” “event” films that will attract audiences to the theater while making it clear that the films will not be released on Disney+ until much later. This will make the theater experience more appealing to customers.
A Silver Lining
The upside is that their $2.99 deal is for ad-supported Disney+, which is their most popular tier. This means Disney likely cashed in on advertising dollars with most of the 27.3 million views. If they can show large profits gained from the advertising, this could go a long way in convincing investors that Disney+ isn’t going to cannibalize the box office in the long run.
That said, the numbers for Moana 2 were really good both theatrically and on Disney+. So, at least that film is a win/win.
What do you think? Comment and let us know!
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