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Disney+’s Mulan Announcement Already Having Positive Impact For Disney
Yesterday's stunning Mulan announcement already seems to be having a positive impact for Disney when it comes to their stocks. At the start of 2020, Mulan stood as one of Disney's biggest releases for the year. A live-action adaptation of the beloved 1998 animated film, Mulan made notable changes from its source material and would be the first PG-13 adaptation of one of its classic movies. There was a lot of curiosity over how Mulan would perform, but the coronavirus pandemic prevented it from reaching its March release date. Disney initially postponed it to late July, but when the situation didn't improve in time, the Mouse House pulled Mulan off the schedule indefinitely.
Disney announced their new strategy for Mulan yesterday: On September 4, Mulan will be available for purchase on Disney+ in several countries, while it will play in theaters in markets (such as China) where Disney+ isn't available. It will cost a hefty $29.99 on Disney+. This led many to wonder if Disney will adopt this strategy for other delayed movies like The New Mutants and Black Widow, but CEO Bob Chapek insisted this is a one-off situation.
According to Variety, there are already signs that Mulan's drastic release change could do some good for Disney. Early Wednesday morning, Disney's shares jumped over 10%, indicating investors are confident in this new strategy. Morgan Stanley analyst Ben Swinburne said, "Out of both success (Disney Plus) and necessity (COVID-19 disruption), Disney is moving to push its streaming strategy to new levels of investment and growth... Execution in both content and technology will remain keys to share outperformance, but we like its hand." It seems that many view this as a bold move, but one they think could turn out quite well.
Of course, this doesn't mean Mulan's release on Disney+ will be a guaranteed success. $29.99 is a lot of money to pay on top of a monthly fee, and there may be many who are turned off by this. Additionally, Mulan had a sizable budget attached, and it will be difficult for Disney to recoup that through $29.99 purchases, even with theatrical releases in other countries. One thing is certain though: Mulan presents a very interesting case, and its performance will likely impact future decisions made in regards to streaming versus theatrical release.
In the short term, releasing Mulan on Disney+ is likely the smarter option instead of simply delaying it again. However, its long term impacts might be difficult for Disney, and it's undoubtedly disappointing that a movie of Mulan's scale (as those who saw it in March praised its incredible visuals) is missing out on a theatrical release in most countries. It's hard to say how Mulan would have performed in theaters, but now it seems like we will never know. Instead, it'll all come down to how well it holds up on Disney+. So far, though, Disney is likely pleased with their decision.
