Walt Disney (NYSE: DIS) came out of the strong gate with The Mandalorian leading its list of Disney + originals when it launched in late 2019. The series based on the Star Wars The universe helped propel the streaming service to tens of millions of global subscribers.
While subscription growth has remained strong until 2020, with Disney + expanding globally, some investors may be concerned about Disney’s ability to increase its library of original titles to the platform. But the Disney demo can apply the same formula it uses to succeed after success on the small screen. The new Marvel series WandaVision can be a bigger success than The Mandalorian. And there’s more where it came from.
An image of WandaVision. Image source: Walt Disney.
A strong opening weekend
About 1.6 million families transmitted at least one episode of WandaVision on its opening weekend, according to data from Samba TV. In addition, 655,000 watched the first episode on the day it premiered. This compares to 1.04 million families for the second season of The Mandalorian in October.
It was one of the most broadcast programs of the weekend on all platforms, ranking at the top of ReelGood’s engagement table with a 9.3% share. That part went well above The Mandalorian first season of the 2nd season, which obtained a 5.7% share.
The data suggests that Disney did an excellent job of marketing the series, and putting it in front of Disney + ‘s 87 million global subscribers when it debuted. In fact, one of the biggest advantages of Disney’s existing scale is its ability to get its subscribers to see what it wants.
Similarly, Netflix (NASDAQ: NFLX) managed to retreat into traditional marketing last year and focus primarily on maximizing the impact of its content investments by displaying previews on the home screen. This makes your marketing and content investments more efficient. Disney is already on that path, but it certainly spent a lot of money on ads outside its own platform to WandaVision.
Exercising dual function
Disney has a lot to gain WandaVision. The series is not only his most recent major release for Disney +, but also falls into the plot of Marvel’s cinematic universe, which has generated billions in box office revenue for Disney over the years. The move is a starting point for Marvel, which historically has kept its television series separate from its films.
In addition to attracting additional subscribers to Disney +, WandaVision it could also get them to leave home for the next episodes of the Marvel movie series. Although there are several film releases planned for 2021, Wanda Maximoff will not make his next appearance in the film until the next Doctor Strange film in 2022.
WandaVisionThe popularity of may also increase engagement with the 12-year catalog of Marvel films available on Disney +. The entire catalog is now available on the platform following the conclusion of its contractual commitments with Netflix.
The series will also fit into the premiere of The Falcon and the Winter Soldier series in March. Ultimately, the two Marvel releases could help Disney get the most out of its relatively small content library compared to larger streaming competitors like Netflix.
Running the manual
Over the years, Disney has built a repeatable manual of offering fans new content in familiar environments. The strategy led him to dominate the box office in theaters and is now adapting to streaming. The first results of The Mandalorian and WandaVision indicate that it is paying off, as subscribers are showing strong demand for the series.
Disney plans to expand its original content efforts starting this year. On investor day in December, the company highlighted 100 new titles it plans to launch in its streaming services (with some debuting in theaters first). It expects to release 100 new titles a year going forward, and its Disney + content budget will double its original expectations by 2024.
All of this quickly pushes Disney toward its new outlook of 230 million to 260 million global subscribers by 2024. And if it gets there, it will become a massive source of consistent free cash flow for the media company. It will stabilize the impact of more variable sources of revenue, such as box office revenue and park attendance, while offsetting the decline in its cable networks as more consumers cut the wire.