Why Do Disney Parks Need a Streaming Service?

Ben Gilbert argues that Disney parks need a widely available streaming service because it is the only way to put franchises like Encanto in front of the maximum number of people and generations. Audiences no longer go to the movie theater except for a huge event movie, so they will not go see Ratatouille, Encanto, or Tangled.

The old Disney business model seeded new stories and characters, and reinvigorated old ones, through the movie theater. People now go once or twice a year, for something like Toy Story 5. New Pixar films from the last 9 or 10 years have set no new records. The only record setters are sequels. Pixar has not gotten worse. The original films have been great and still made 200, 300, or 400 million at the box office. The bogey moved because the market changed. Ratatouille reaches consumers through the Netflix algorithm, the YouTube algorithm, or a first-party streaming service Disney owns, which can also put Soul, Turning Red, Elemental, and Encanto in front of people.

Running the service is not that profitable. Disney parks make $10 billion, and the films feed the parks, so Disney needs a way to make sure people see them.