Why Disney+ Could Be Charging Subscribers $30 To Watch ‘Mulan’
Image via Disney
After repeated theatrical postponements due to the COVID-19 crisis, Disney decided to release the live-action Mulan movie on the Disney+ streaming platform with a hefty price tag: US$30.
Audiences balked at the sum, seeing as how Disney+ members would have already paid for monthly subscriptions at US$6.99 and up. Disney+ also no longer has a free trial period.
When announcing that the US$200 million movie would be streamed instead of hitting big screens globally, Disney CEO Bob Chapek emphasized that it was a one-off solution to “recapture some of our original investment” and wouldn’t affect Disney’s overall business strategy.
Paying this amount will unlock ‘Premier Access’ for the film, meaning that Disney+ subscribers will be able to watch Mulan as many times as they wish as long as they keep their memberships.
There might be a few other reasons for marking access to the film at this price, aside from recouping losses. Bernie McTernan, senior analyst at Rosenblatt Securities, deduced with CNN Business that coughing up a premium to watch Mulan will incentivize audiences against canceling their subscriptions, since they’re being virtually promised a lifetime’s access to catching the film.
McTernan added that, since streaming services now offer the privilege of zero canceling fees, customers can opt-out whenever they want. When done the right way, this can also be an opportunity for streaming platforms, as it can be turned into a strategy to “dissuade the cycling between services.”
Zak Shaikh, vice president of entertainment at media research firm Magid, shared with CNN Business that streaming might currently be “the best way” for Disney to “connect to their audience and make more revenue” as movie theaters remain closed.
The live-action remake, starring Chinese-born American actress Crystal Liu Yifei, will make its debut on Disney+ on 4 September. Mulan will stream in areas where Disney+ is available, but will still be released simultaneously in countries, including the lucrative Chinese market, that do not have access to the streaming service yet.
[via CNN Business, cover image via Disney]
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