Weekly News Round Up: Disney+ Gains Subscribers At Cinemas' Expense, Netflix Loses Ground In France.
Disney’s Addiction to Subscriber Gains Drives Disruption at the Expense of Theatrical Revenue
Price increases aside, Disney’s addiction to streaming is good news for consumers because the company will be driven to keep them happy....For theater owners, Disney’s addiction to streaming is dire news...Disney’s new business model makes more money by selling one more subscription than it does by selling one more ticket. Studios with company-owned streaming services also have greater leverage over theaters to dictate terms. This is likely to result in anemic theater revenue, income losses, potential bankruptcies and greater consolidation.
After the disruption settles and the industry reaches a new equilibrium, studios and consumers will undoubtedly come out as winners. Talent will probably break even. Theaters will lose. And while some may think that this was a result of the pandemic, these events were already in play because theatrical windows were already shrinking pre-COVID, consumers were already revealing a strong preference for streaming, and studios were already creating their own streaming services. The pandemic simply made the future arrive earlier, thanks to Wall Street’s expectations and Disney’s addiction.
Netflix Loses Market Share in France
Netflix in June reportedly lost market share in France, the one European market where the SVOD pioneer struggled to connect with consumers after launching in 2014. The streaming behemoth still commands French consumer attention with a 37% market share, which is down from 40%, according to new data from NPA Conseil. Gaining share: SVOD competitors Amazon Prime Video and Disney+, which grew market share to 22.9% and 15.4%, respectively.
French streamers subscribe on average to 1.9 services, reaching 52.8% market penetration in March, before falling to 49.8% in June. NPA Conseil reported that 70% of French consumers own at least one streaming media device, which includes connected televisions and related set-top boxes, as broadcasters TF1, France Télévisions and M6 aim to expand their joint SVOD venture, Salto, beyond 1 million subscribers this year.
‘Shang-Chi’ Ringing Up $140M Global Bow, Sets Pandemic Record In UK
Disney/Marvel’s Shang-Chi And The Legend Of The Ten Rings outperformed expectations at the global and international box office this weekend, coming in with $56.2M for the standard overseas frame, and a new Labor Day record $83.5M for the four-day domestic session ($71.4M three-day). Combined, and including the Labor Day estimate, the worldwide total is $139.7M.
On screens in 41 material offshore markets, the first Asian American Marvel superhero chimed in with No. 1s in all key hubs, including the biggest three-day opening weekend during the pandemic era in the UK ($7.7M). That market leads all offshore play, followed by Korea with $6.5M, France ($4.3M), Russia ($3.2M) and Japan ($2.8M). There is a fair amount of runway ahead for Shang-Chi which is looking at a potential 3.5 multiple overseas.
‘Top Gun: Maverick,’ ‘Mission: Impossible 7’ Releases Delayed Amid Delta Surge
The latest release date shuffle, marking the first domino to fall in late 2021, comes as the country’s COVID-19 cases remain stubbornly persistent. That has resulted in a significant decline in consumer confidence in returning to the movies. According to research conducted by NRG, 67% of moviegoers say they are “very or somewhat comfortable” visiting their local theater, which is down 11 points from July. Among family audiences, 58% of parents say they are “very or somewhat comfortable” taking their kids to the movies, which is down five points from last week and marks the lowest point since late April. Internationally, the box office has been struggling to draw crowds as well, making it difficult for big-budget films, such as “Top Gun: Maverick” and “Mission: Impossible 7,” to turn a profit theatrically.
‘Ghostbusters: Afterlife’ Takes Over ‘Top Gun: Maverick’s Pre-Thanksgiving Spot
Ghostbusters: Afterlife will inherit the Imax and premium large format screens originally booked by Paramount for Top Gun 2. Ghostbusters: Afterlife was previously dated on Nov. 11. Sony sneaked the movie to exhibition at the end of its presentation last week in Las Vegas, and there was immediate buzz with anecdotal comparisons to Steven Spielberg movies and Netflix’s Stranger Things.