Disney Investor Calls For More Streaming Dollars
What would Walt Disney Do? One prominent investor implies Disney should take a page out of Walt’s playbook.
Way back in the day. When nearly everyone else was focused on movie theaters, Walt Disney made a dramatic decision.
Rewind: Walt Disney & Television
Instead of seeing TV as direct competition for his films, Disney decided he would utilize television to inform the world about his company’s work.
Television would be the way The Walt Disney Company would spread the word about his new venture called “Disneyland.” TV would also be the way the public would learn about his studio’s latest films.
And, finally, it was through TV that everyone met “Uncle Walt” – the ultimate brand ambassador.
Fast Forward: The Disney Company & Streaming TV
While not directly invoking Walt’s name, one noteworthy investor suggested The Walt Disney Company take a page out of Mr. Disney’s playbook and turn the company’s full attention to streaming.
The investor suggested Disney studios turn their full attention to the home box office.
Furthermore, the investor suggested Disney focus its best content on the small screen.
Enter Mr. Loeb
The Business Insider’s Emily Graffeo explained:
Investor Dan Loeb urged Disney CEO Bob Chapek to end the company’s annual $3 billion dividend payments and redirect those funds to building up Disney+ in a Wednesday letter.
The founder of Third Point said that reallocating dividend money to Disney+ could double the streaming service’s budget for original content, bring in additional subscribers, lower churn, and boost pricing power, according to the letter obtained by Bloomberg. His push for streaming comes as in-person movie theaters continue to suffer throughout the pandemic.
“Every Hollywood executive has been able to enjoy first-run films in the comfort of their home theaters for years,” he said. “We urge you to democratize this experience.”
Loeb Shares Radical Thinking About Disney’s Future
Meanwhile, Variety interviewed Loeb, who said:
“Given the relationship that Disney has with the entertainment consuming public thanks to franchises like Marvel and Star Wars and Pixar, they can leverage all of those to increase their subscriber base.”
Pointing at Disney’s success with “Hamilton” and “Black is King” Loeb sees a continued opportunity – especially with blockbusters.
Variety added:
“My understanding is that the old-line executives don’t want to go over the top with their big tentpole movies, which is why they announced they were pushing ‘Black Widow” and other movies to 2021… I don’t think they appreciate the tiger they have by the tail, which is to say the value they can drive by moving into a subscription model, which has been adopted by everyone from Microsoft to Amazon.”
So, Disney fans (and stockholders), stay tuned [pun fully intended].