M+E Connections

Disney is doubling down on its direct-to-consumer (DTC) streaming initiatives amid the ongoing global pandemic, saying it plans to launch a new international general entertainment offering under the Star brand in 2021 and release its delayed theatrical tentpole live-action film version of “Mulan” on Disney Plus –- on a “premier access basis” — starting Sept. 4.

“Mulan” will cost $29.99 for Disney Plus viewers in the U.S. and pricing “will vary slightly in other countries,” new Disney CEO Bob Chapek said Aug.4 on an earnings call, while announcing the plans.

“Given the rapid changes in consumer behavior, we believe it is more important than ever that we continue to grow our direct relationship with our customers,” he told analysts.

The new Star streaming service is part of that strategy, he said, noting the company will be “mirroring the strategy we successfully pursued” with Disney Plus. The new DTC offering “will be rooted in content we own from the… production engines and libraries of ABC Studios, Fox Television, FX, Freeform, 20th Century Studios and Searchlight,” he told analysts.

“In many markets, the offering will be fully integrated into our established Disney Plus 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 Plus Hotstar in India,” he explained, adding: “The fact that Disney Plus is growing as rapidly as it has both domestically and globally, clearly demonstrates the value of our content, and through the addition of our Star-branded general entertainment offering, we [are now] further extending the value of that content internationally.”

Disney will also be hosting another Investor Day “in the coming months, focused on our plans to accelerate the push into the direct-to-consumer marketplace across our Disney Plus, Hulu, ESPN Plus and Star brands,” he also said.

More on the New “Mulan” Plan

Noting Disney had to delay the theatrical release of the new live-action “Mulan” several times due to the impact of COVID-19 on movie theaters, Chapek told analysts that, “in order to meet the needs of consumers during this unpredictable period, we thought it was important to find alternative ways to bring this… family-friendly film to them in a timely manner.”

That is why the company decided to release it on Disney Plus in most of that streaming service’s markets, including the U.S., Canada, Australia, New Zealand and a number of countries in Western Europe, he said.

However, “simultaneously, we will be releasing the film theatrically in certain markets where currently we have no announced launch plans for Disney Plus and where theaters are open,” he pointed out, adding: “We see this as an opportunity to bring this incredible film to a broad audience currently unable to go to movie theaters, while also further enhancing the value and attractiveness of a Disney Plus subscription with this great content.”

More on DTC

“When I became CEO in February, I emphasized that we will continue to pursue bold innovation thoughtful risk taking and the creative storytelling that is the lifeblood of the Walt Disney Company, and despite the challenges of the pandemic, we’ve managed to take deliberate and innovative steps in running our businesses,” Chapek told analysts.

“At the same time, we’ve also been very focused on advancing and growing our direct-to-consumer business, which we see as our top priority and key to the future of our company,” he said.

Since the domestic U.S. launch of Disney Plus in November, the company has rolled it out in several major international markets, including Western Europe, India and Japan, he noted.

As of Aug. 3, Disney Plus surpassed 60.5 million paid subscribers globally, “far exceeding our initial projections for the service,” he told analysts. That was up from 57.5 million at the end of Q3, according to Disney CFO Christine McCarthy.

“As our global sub numbers continue to grow, we’ve also exceeded our internal subscriber projections in every major market we’ve launched thus far,” Chapek pointed out.

The company will continue the international expansion with the launch of Disney Plus in the Nordic countries, Belgium, Luxembourg and Portugal in September, and in Latin America this November, he told analysts, adding the company will also be rolling out Disney Plus Hotstar Sept. 5 in Indonesia. “By year-end, Disney Plus will be available in nine of the top 10 economies in the world,” he noted.

Combining all of Disney’s current direct-to-consumer businesses, including Disney Plus, Hulu and ESPN Plus, “our combined global reach now exceeds an astounding 100 million paid subscriptions,” he told analysts, calling that a “significant milestone and a reaffirmation of our strategy for growth.”

The confidence that Disney now has with its DTC offerings, “coupled with the trends we’re seeing in the multi-channel universe, will lead us to pursue even more innovative and bold initiatives as we continue to grow the business,” he said.

The recent launches of “Hamilton” and Beyonce’s “Black is King” on Disney Plus have “clearly shown the power” of the streaming platform for “premiering world-class content,” he told analysts, adding “more great content [is] coming to the service.”

That will include the fantasy film “The One and Only Ivan,” which will stream exclusively on the service beginning Aug. 21, and “The Right Stuff” from National Geographic about NASA’s Project Mercury, which is set to premiere this fall, he pointed out.

Also coming up: The second season of the Disney “Star Wars” TV series “The Mandalorian” will launch on the streaming service in October fresh off being nominated for 15 Emmy awards including Outstanding Drama Series, a “first for a debut streaming service,” he said.