Disney has begun to restructure its goals, and a focus on streaming is now its primary objective. The arrival of Disney+ less than a year ago has already been a major success for the company, pitting it as big competition to Netflix's streaming monopoly.
Though Disney+ remains firmly rooted in its family first credo for entertainment, it doesn’t seem to have held the streamer back. At the same time, however, there has been much talk since the service launched about the manner in which it alters films and how Disney+'s original films aren’t really making the cut when compared to what Netflix has managed to pull off. But these are still early days, especially when Disney’s ability to thrive in the long-term is taken into consideration. Few could have anticipated way back in 1955 when Disneyland first opened its doors that the brand would expand internationally and ultimately end up with six parks in total. That sort of evolution took time, and while attendance numbers were initially low (by today’s standards) when Disneyland first opened, they continually rose, never once dropping back over the course of sixty-five years to what they originally were. When considering that streaming is a relatively new phenomenon, it’s clear that Disney is on the right path to dominate yet another avenue of entertainment.
Today, with the COVID-19 pandemic forcing Hollywood and film industries across the world to reconsider their release models, Disney is already making a firm decision. According to a press release from Disney, the corporation is now officially focused on redirecting its energies toward streaming, particularly through original content via Disney+. In addition to this, the Mouse House has now formed a new, single global Media and Entertainment Distribution group that will oversee all aspects of its streaming services. According to Disney CEO, Bob Chapek:
"Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value. Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it. Our creative teams will concentrate on what they do best—making world-class, franchise-based content—while our newly centralized global distribution team will focus on delivering and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service."
Though Covid is very much a factor in this, Disney has denied that the pandemic was the direct cause of its decision to refocus on streaming content. This sort of direction was reportedly always the plan for Disney, but the fact of the matter is that Covid has accelerated its implementation. The announcement is more bad news for cinemas, who have been struggling to stay open or otherwise bring in audiences throughout the pandemic. But Disney is clearly more concerned about its own ability to survive and adapt during difficult times, and streaming services have gained tremendous popularity over the past several months.
All this being said, Disney is going to have to do something about the quality of its original content if it wishes to really make a big impact with Disney+. Yes, those who want more mature content can always go with the likes of other Disney brands such as Hulu, but there’s a strong argument to be made that Disney+ has much to gain from implementing less family-friendly content alongside its family-friendly content on the streamer. If a solid focus is now on streaming, the possibility of evolving their model for entertainment should be considered.
Source: Disney