Disney Carves Out An Owned Future With Mulan

None of this is that surprising, tbh.

In response to the (largely indefinite) closure of movie theaters around the country because of the ongoing Covid-19 pandemic, studios have generally taken one of three potential alternative paths:

  1. Punt: Just keep kicking the release date down the road, hoping that the situation improves by then and the movie can be sent to theaters.
    1. EX: Wonder Woman 1984, Tenet, Fast & Furious 9, Black Widow
  • PVOD: Accepting the reality that not everything can be held for a later date, some titles have been sent straight to VOD, with premium price points to make up for the loss of theatrical revenue.
    1. EX: Scoob!, The High Note, Bill and Ted Face The Music
  • Streaming: Whether it’s an owned platform like Disney+ or a third party like Amazon or Netflix, some titles have been handed off to streaming because the economics make more sense or it fills in some other part of an overall strategy.
    1. EX: Artemis Fowl, Without Remorse, Hamilton, The Lovebirds

With no end in sight for the Covid-19 outbreak it’s only logical studios would seek out some alternative release plan. They are in the production and release business and if they need to they will seek alternative distribution methods. That’s similar to how changes in the retail world as a whole has led to the rise in direct-to-consumer businesses and more.

Add to that the fact that so many of 2020’s planned movies have been delayed by several months – in some cases up to a year – that the 2021 release schedule is backed up all the way to the Tri-State interchange, limiting any studio’s options.

This Did Not Go Over Well

The reaction from theaters has been predictable, beginning with AMC Theaters’ promise to never play future films from Universal after it sent Trolls World Tour to PVOD in April. Most recently, those two parties announced a new deal wherein future films would have shorter theatrical-to-home windows. Smaller theater owners have also had time to express their displeasure while other large chains like Cinemark and Regal have offered their own skeptical takes.

While certainly unprecedented, the deal between Universal and AMC – which has reportedly been offered to other studios – doesn’t break many existing distribution norms in function, even if the details are largely new. The “home” release will still take advantage of the platform infrastructure developed and offered by established players like Apple, Amazon and others.

Still, exhibitors kept holding out hope that one or both of two titles – Tenet and Mulan – would provide the light at the end of the tunnel they needed, offering an attractive film that audiences would, however reluctantly, come back to theaters to see after months at home.

Alternate Futures

Those hopes faded a bit when Warner Bros. announced a unique release plan for Tenet that involved the movie coming out overseas in late August and then in whatever U.S. theaters are available over the Labor Day weekend in early September. That’s bad news for domestic audiences and exhibitors (but great news for Torrent software providers) who are essentially being pushed down the priority list and who may have one of the year’s most secretive plots spoiled for them.

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They diminished almost entirely last week when Disney revealed it was creating its own fourth option for the September 4th release of Mulan on Disney+. The release is notable for at least two reasons:

First, it mashes up a couple of the existing paths to create something wholly new. While many media companies have worked to create their own streaming platforms in the last year, those have largely been subscription services, and once you subscribed you had access to everything. Even tiered services like Peacock didn’t charge you extra for one specific title, you might just have to upgrade to the next membership level.

This works differently, essentially creating a PVOD service within the existing subscription framework. If you’re not a member, you don’t have access to the PVOD content, meaning the true cost of the rental is the $29.99 list price plus at least the $6.99 monthly fee. In other words, the cover charge you paid at the door doesn’t grant you entrance to the Champagne Room.

Existing platforms like iTunes, Amazon and others should be watching this as closely as theater owners have been over the last several months. If Disney – or any other company – can find some success in this way they no longer become the one-stop, producer-agnostic shop they’ve been to date.

Second, it creates a whole new marketing paradigm. The campaigns for movies like The Lovebirds, Scoob! and others have changed, often mid-stream, when their release futures were altered, with the call-to-action shifting from “In theaters on…” to “Watch it at home on…” Even still, the expected action on the part of the consumer was only a single one. Instead of “buy a ticket” it was “subscribe” or “download.”

Whenever Disney launches a new phase of Mulan’s campaign, it will have to communicate a two step process: 1) Subscribe to Disney+, then 2) Pay $29.99 for this single movie. That will be a little harder to get through audiences and could create a fair amount of customer confusion when the movie launches as people are caught unaware they have to make an additional payment to watch the movie.

What’s Next?

That the reoriented campaign for Mulan wasn’t ready at the same time the announcement was made is slightly surprising since Disney is masterful at coordinating initiatives to take advantage of a moment.

Warner Bros. not having a new phase of Tenet’s campaign is equally surprising, though a bit more understandable given how, at least for U.S. theaters, it’s still largely contingent on a best case scenario being available. It is, in other words, less concrete and so WB is likely holding its fire.

On top of those, there are still a number of high-profile titles that are supposedly coming to theaters later this year.

The New Mutants is, against all odds, still scheduled for late August.

Wonder Woman 1984 is still scheduled for late September, but at this point there’s almost no time to mount a campaign for the movie even if that date holds.

Black Widow and No Time To Die are still scheduled for early and mid-November, which is slightly more realistic but becomes less so with each passing day.

The campaigns for those last three have been paused for a number of months now, and would have to fight through the noise of the daily news cycle – a cycle that includes 1,000 or so Americans dying each day and a ramping up presidential election – to get people’s attention. That adds to the odds some alternative will be sought, as it may not be possible to get a critical mass of awareness that overlaps with the segment of the population willing to participate in mass entertainment without a Covid-19 vaccine, much less a cohesive testing and tracing strategy.

Which option is chosen will be determined by what each studio thinks it can manage as it seeks to make a wide range of stakeholders, each with competing priorities, happy with the proposal.

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