FikaBits: Disney+ puts the nail in the movie theatre coffin

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Yesterday Disney said that its primary focus for entertainment is streaming and announced a major Disney+ focused reorg of its media division.

Why now? While Disney's theme park and film divisions were reeling from the pandemic, Disney+ was able to save the company from an even worse fate, and in the process catapulted itself for a bigger role going forward.

Disney was also facing external pressure to invest more in streaming. Last week, activist investor Dan Loeb called on Disney to end its dividend and invest more funds into Disney+.

Does it make sense? Not if you're a movie theater owner. For Disney, the move makes a lot of sense. It puts streaming at the center of Disney's entertainment business. As discussed in my previous post on Disney+, we can expect to see more releases that follow the Mulan model. And definitely, I don't expect to see increases in Disney+ prices.  


Disclaimer: This post is merely my own assessment and is not an investment recommendation. For professional advice, seek input from a licensed investment advisor.

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