Disney Headlines for August 29th, 2021
This week, Disney contemplates gambling, while Kim Possible laments her finances.
Also, Target and Disney deepen their commitment, while Disney+ gets better.
We’ve got some fun stuff in this week’s Disney Headlines.
What’s Up with Disney+?
Okay, let’s start with some fantastic news. Cruella is now streaming as part of Disney+. So, you no longer must pay for it via Premier Access.
As such, for many people, this weekend represents the first opportunity to watch the film. And you should for this song alone:
Notably, only two movies remain on Premier Access, Jungle Cruise and Black Widow.
Disney has yet to announce additional titles. Conversely, Free Guy came with an exclusive theatrical release. Shang-Chi and the Legend of the Ten Rings will be exclusive to theaters as well.
Nobody is talking about Eternals yet. I suspect Disney’s awaiting additional COVID-19 data.
Kevin Feige, the head of Marvel, has stated loudly that he prefers the exclusive theatrical window.
Disney would rather not make him mad for the same reason the Kansas City Chiefs want Patrick Mahomes Jr. happy. Feige’s the franchise.
Still, we did get some insights into how well this new program has worked. Disney filed court documents as part of its ongoing legal battle over Black Widow.
Scarlett Johansson wants to take Disney to court over lost earnings. Meanwhile, Disney would prefer the case to go before an arbitrator.
So, the company took the rare step of opening its books. Disney showed that Black Widow has earned $125 million after six weeks on Premier Access.
At the time, the Marvel movie had grossed less than $180 million in North America, which it splits with movie exhibitors like Regal Entertainment and AMC Theatres.
Disney’s profit for Black Widow on Disney+ is undoubtedly over $100 million.
In other words, Disney probably earned more revenue from its vertically integrated release of Black Widow than it did in North American theaters.
As such, you can safely expect more Premier Access titles soon.
A Very Target Christmas
Disney just confirmed the closure of another 57 Disney Stores across the country.
This sad news reflects the company’s evolving approach to commerce. Disney has watched what Amazon has done and mimicked the idea.
The days of Disney retail space are coming to an end, at least for most of the country.
After these stores shut down operations, we’ll have only 25 Disney Stores remaining.
Why is Disney taking this approach so close to the holidays? The company has come up with a more viable business model.
Target just announced that it will add more than Disney shops inside its retail stores.
You may recall that some Target stores already included these Disney sections. Now, the two businesses have cemented their business relationship.
For Disney, this idea works better. Target will pay for the retail space and then take a cut of Disney’s merchandise sales.
We’re moving toward an era where companies cut out the middlemen, something we just discussed with Disney+ and movie theaters.
However, the expense of leasing retail space matters more to Disney than giving Target a part of its revenue. So, this was an easy call.
For Disney fans, this decision falls somewhere between lateral move and win.
Sure, Disney Stores are gone. However, you can get everything you need at Target AND buy some Disney merchandise while you’re there. That’s more convenient.
The Perils of Child Acting
Do you know who Christy Carlson Romano is? Disney Channel fans of a certain age definitely do.
Romano played the role of Shia LaBeouf’s sister on Even Stevens. But, more importantly, at least for me, she voiced Kim Possible.
Folks, Kim Possible is the greatest thing in the history of the Disney Channel, and I will FIGHT anyone who says differently…unless they say Phineas & Ferb.
Anyway, the semi-retired actress hosts an almost brutally honest channel on YouTube. Her latest video, which I’ll link here, discusses her finances:
While I recommend you watch this and pretty much all her videos, as she’s a refreshingly open person, this one resonates.
In this clip, Romano explains how she earned and then lost millions of dollars. Thankfully, it’s not a sad story about drugs or the like.
Instead, she details how she wasn’t aware of how to save money. In a single year, book and music deals earned her more than $1 million…and she spent it all that year.
For fans of Romano, this clip will actually make you like her better. Still, if you want to watch something more upbeat, here are Ron Stoppable and her making Nacos:
Folks, this video has 100k upvotes against 700 (!) downvotes. It’s everything that Kim Possible fans want and need.
Betting on Disney
We’ll call this one an informed rumor rather than a fact right now. However, Disney stock received a sudden $4 boost on Friday due to an intriguing report.
The Wall Street Journal suggests that Disney wants to get into legalized gambling. Well, that’s not quite what’s happening.
Instead, Disney is conversing with potential business partners like DraftKings and Caesars Entertainment.
The idea is that Disney would sell licensing rights to the ESPN brand in exchange for a fat wad of cash.
Specifically, Disney could receive $3 billion for these naming rights for a few years.
Theoretically, Caesars could change the name of its sportsbook to include ESPN. Think about Fox Sports turning into Bally Sports. It’s like that.
Similarly, DraftKings would use ESPN identifiers for its contests.
To the casual consumer, DraftKings and Caesars don’t possess the reliability of the ESPN brand.
So, Disney would be cashing in on the respect that ESPN has earned over the years.
Meanwhile, DraftKings and Caesars would pay for the privilege of connecting their brands with ESPN.
The U.S. Census Bureau performed a joint study with Gabelli Securities that suggests Americans currently spend $2.1 billion on legalized gambling.
The study indicates that this industry could grow to $10 billion by 2028. Disney is plotting the best course of action to take advantage of this expansion.
Obviously, none of this would involve the actual Disney brand, though, just ESPN.
Still, that’s a LOT of money just for naming rights. So don’t be surprised when the announcement of a deal happens.
Feature Image: Getty Images