"Mulan" Looks Like a Big Win for Disney+
If you were wondering if Disney's (NYSE
IS) decision to take Mulan straight to at-home audiences would pay off, the answer looks like a resounding yes. While Disney has not released specific data about the performance of the live-action remake of the animated hit on Disney+, a number of third-party metrics indicate that the move was an overwhelming success.
Several delays after releasing the film in theaters, Disney decided to make it available directly to Disney+ subscribers, for an additional fee of $29.99, starting on Sept. 4.
Downloads for Disney+ spiked 68% on Labor Day weekend compared to the prior weekend, according to Sensor Tower, nearly as good as the 74% jump the app got when Hamilton was released over the July 4 weekend. Even better, consumer spending in the app jumped 193%, showing consumers were eager to fork over $30 for some new family entertainment.
Additionally, nearly 29% of U.S. households that subscribe to Disney+ purchased Mulan through Sept. 12, according to 7Park Data. Disney has about 60 million subscribers on Disney+, though it hasn't broken out the percentage of those coming from the U.S. Still, if about half of the subscribers are in the U.S., and 29% of those paid for Mulan, which had an estimated production budget of $200 million, that would be equal to roughly 9 million accounts, or $270 million in revenue in just nine days. Since Disney owns Disney+, it keeps all of that revenue -- as opposed to splitting it 50/50 with a theater operator, as is the usual protocol with box office receipts. That would represent a huge windfall for Disney, and make Mulan profitable on the basis of Disney+ U.S. sales alone. Disney CFO Christine McCarthy also said the company was "very pleased" with the result so far, though she didn't report any numbers.
https://www.fool.com/investing/2020/09/19/mulan-looks-like-a-big-win-for-disney/
