There’s no question that certain industries have been hit harder than others throughout this pandemic. And while restaurants, hospitality and transportation all seem to soak up most of the attention, movie theaters are another venture that cannot be ignored.
When the pandemic began to ripple throughout America, Hollywood delayed practically all of its scheduled releases. Initially, these delays were just a few months, but now many highly anticipated films are being bumped back an entire year. It’s made it tough for the movie theaters that remain open throughout the country to generate any sort of business, as people don’t want to go to the movies to see old films. It’s also led to petitions to Congress to provide aid to the hard hit industry and to Hollywood to release its blockbusters so there’s an opportunity to earn revenue.
And that’s why what Disney is doing with its live action “Mulan” film is so intriguing. Originally scheduled for a spring release, Disney bumped back the film’s release date before shelving it indefinitely. And the entertainment giant made huge waves last week when it announced that “Mulan” would drop on its Disney+ streaming network next month – but at a cool price of $29.99 in addition to the monthly subscription fees. Think of it as a pay-per-view type of option if you will, an add on purchase option to a service that many people are already paying for.
It’s a bold move for Disney to make – and it’s a move that should have the full attention of movie theaters. Here’s why:
- “Mulan” is a big budget movie that cost more than $200 million to make. Releasing it on a digital streaming platform, if successful, could inspire other studios to bypass the theater and release their big budget popcorn flicks in a similar manner.
- It’s estimated that “Mulan” would have made $1 billion at the box office. At $30 a pop, it would have to sell about 30 million digital views to make this up. It’s unlikely to happen, but keep in mind that Disney can keep 85 percent of its fees this way. If the film hit theaters, it would only keep about 55 percent of it.
- “Mulan” could be just the start. Disney is already rumored to be dropping “Black Widow” and its new Pixar film “Soul” in a similar manner if “Mulan” fares well. And Disney+ likely won’t be the only streaming service looking to cash in. Expect Netflix, Hulu and Amazon Video to get more aggressive negotiating with studios to operate a similar business model on their platform if all goes well.
If “Mulan’s” release is successful, it will likely only further impact movie theaters – and not in a good way. What do you think? Would you rather microwave popcorn and sit in front of your living room TV to catch a new release? Or do you prefer a night out, movie theater popcorn and the big screen? Your choice may become more and more limited based on “Mulan’s” success.
