"For most, if not all big studio movies, between 70-80 per cent of all box office is offshore, and it feels like that's been forgotten". "In many markets, the offering will be fully integrated into our established Disney+ platform from both a marketing and a technology perspective, and it will be distributed under the Star brand, which has been successfully utilized by the company for other general entertainment platform launches, particularly with Disney+ Hotstar in India", Chapek said. Excluding certain items, Disney posted a profit of 8 cents a share, down 94% from the same period of time a year ago.
While subscribers to Disney Plus hit 57.5m, well above expectations when the service launched a year ago, revenues at its tourism business, which includes its theme parks and cruises, fell by 85pc. "We're trying to establish a new premiere access window to capture that investment we put in the film".
Paolo Pescatore, an analyst at PP Foresight, said Disney's streaming gains were impressive but it would need to continue to add new shows and content if it hopes to compete. Disney estimated that its parks, experiences and products segment alone suffered a $3.5-billion hit to operating income because of the effects of the pandemic during the quarter.
One of the rare bright spots in the quarter was Disney Plus, the streaming service the company launched in November. Disney executives said on a conference call it now has 60.5 million subscribers worldwide after moving a number of previously theatrical movies to the service, most notably "Hamilton" on July 4 weekend.
Mulan cost an estimated $200 million to produce. On Tuesday, investors, apparently reacting to the digital "Mulan" announcement, sent the share price up 6 percent in afterhours trading. Tuesday's subscriber report means that Disney hit its goal four years early.
Chapek says The Walt Disney Company is going to learn from "Mulan" in regards to future tentpoles going directly to Disney+ premium.
The more I sit with this figure, the more I'm certain that even I - a person who just 30 minutes ago said this charge was unthinkable - would fully shove more dough into Disney's overstuffed pockets than I already am every month just to watch something new.