Disney's digital gamble on a big-budget movie is smart, safe, and the future

Login to post comments
2 posts / 0 new
Kristen K.'s picture
Offline
Joined: 09/01/2011
Posts: 22996
Disney's digital gamble on a big-budget movie is smart, safe, and the future

https://www.fool.com/investing/2020/08/09/this-changes-everything-for-disney.aspx

I always like reading what the Fools have to say about Disney, good or bad. One of them is a HUGE Disney fan, so not only does he offer a market analyst perspective but he has that emotional connection as well. The story at the link talks about about how Disney isn't waiting for theaters to reopen and is blazing the trail in the form of a long awaited release for the live action Mulan, directly to Disney+.

The article goes on to say that "If 10% of Disney+ accounts go for the rental, we're already looking at more than $180 million in revenue, nearly recovering the production costs. If 15% of the homes pay up, we're talking about $270 million -- and that will more than recoup the production costs as well as a marketing budget likely in the range of $50 million." That opens up a whole new future market.

IF... if people are willing to pay $30 for a limited time rental of a first tun movie.

While my kids were young I think I would have. A family of 4 paying $8 a head comes out to $32 for the movie tickets. When you add in popcorn, soda, and all the scenes I would have had to miss taking trips to the bathroom with them this would have been a really good deal for me. However, these days as an adult fan attending with just my oldest daughter the $30 rental seems mighty steep to me.

What are your thoughts? Will you be shelling out the extra $30 to see Mulan?

JoAnn C's picture
Offline
Joined: 05/20/2011
Posts: 6689

For a family with the costs of movies today, it's a great value. Not a good value for me. If it included unlimited viewings, I may consider it.

__________________

DIStickers.com Ticker

DIStickers.com Ticker

DIStickers.com Ticker

DIStickers.com Ticker

DIStickers.com Ticker