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Disney Plus Will Profit From New Releases Without Cinemas, Here’s How

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Back in March, Hollywood was in tatters. No one knew what was going to be the future of the entertainment industry with cinemas and theatres closed. Hollywood just wasn’t prepared at all. But, there was one business that achieved unimaginable success. And that was streaming services. Moreover, it looks like streaming services will also save the industry. The biggest proof of this is that Disney is set to make profits on its new releases with the help of Disney Plus.

Disney+ will save Disney’s new releases

Disney+ Will Profit From New Releases Without Cinemas, Here's How

After “Mulan” and “Black Widow” getting delayed, things were looking delirious for Disney and the film industry. But, just like evolution, the virus forced everyone to adapt to new surroundings. To counter the virus and closure of theatres, there were theories that maybe Disney would introduce a premium tier in Disney Plus. At first, people brushed off these theories. But, it looks like they’re true.

Disney has announced that they’ll be releasing their much-anticipated film “Mulan” on Disney Plus. However, it wasn’t going to be available for streaming like the rest of the film. In fact, the audience can only rent “Mulan” as an add-on purchase for $29.99. This will be separate from the monthly fee of $6.99. However, this is not a novel concept. The UFC pay-per-view on Disney’s ESPN is very similar to this.

Now, there’s no doubt that $29.99 is a hefty price for any film. But, is this move by Disney to bank everything on Disney Plus, at such a high price, going to be successful?

Is “Mulan” too expensive to stream?

The very first thing that many people would see is the 30 dollar price tag. But, Disney really has no other option right now but Disney Plus, as theatres are still closed. Moreover, this is their first experiment with this, as David Chapek said that they will use “Mulan” as a learning experience. If “Mulan” does well, this will be the roadmap Disney will follow for Black Widow and other big theatrical releases.

Moreover, with a budget of $200 million, Disney has to find a way to make money off of it. According to Variety, if one of every five Disney Plus subscribers rent “Mulan“, only then will Disney make a $375 million expected profit. That is a tough ask, as asking subscribers for four times the price they pay in the subscription. People will only pay because of Disney’s name and credibility. But, if this becomes successful, other streaming services and production houses will follow Disney’s example, and could eventually lower the price too. In fact, I believe that if it cost as much as a cinema ticket (we wish), it might be a bigger success. But, all we can do right now is to wait and see.

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