Brandon Blake- Managing Partner at Blake & Wang P.A.
Disney has finally spoken- and it is in favor of theater exclusivity for its upcoming releases. While this development would have been very unexpected until the last month or so, it’s incredibly welcome news for the theatrical exhibition industry. They likely have the runaway success of Shang-Chi and the Legend of the Ten Rings to thank for it, too, as it’s no secret that Disney is pinning most of its hopes on their streaming services for future revenue generation. Entertainment attorney and experienced entertainment business figure, Brandon Blake, has the details.
Five of the upcoming six Disney titles will not go to streaming until at least 45 days after theatrical release. The remaining title, the animated film Encanto, will head to streaming after 30 days with no premium/additional access charge in order to capitalize on the Christmas childhood market. We knew it was unlikely we’d ever see the 90-day theatrical window return, or the lure of extra revenue from premium VOD abate, so this is likely to be as good as it gets for theaters going forward. This deal is for the domestic market only, with their future-based approach for international openings still up in the air.
Perhaps it’s worth mentioning that four of these films are 20th Century Fox productions, with inherited deals that offer Disney less flexibility, but clearly they aren’t hurting for streaming content if they can offer this sweetened package, either. Is it purely down to Shang-Chi’s runaway success? While overall pressures within the industry have played their part too, it’s not unreasonable to assume the success of Shang Chi (and the notable way in which Black Widow tanked after the opening weekend) has a lot to do with it.
This news will, no doubt, be well-received by the theatrical industry. Will other studios follow suit? That remains to be seen, but we will keep you in the loop.
