Walt Disney Co (DIS)

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Disney+ to Stream Blockbusters on Same Day They Debut in Theaters
By: TheStreet | March 24, 2021

Disney (DIS) announced changes to its movie release strategy and schedule on Tuesday, delaying the highly-anticipated releases of "Black Widow," as well as five other movies, with plans to debut them on Disney+.

Following the HBO Max/Warner Bros. model, Disney will make "Black Widow" and "Cruella" available for streaming on Disney+ for an extra fee on the same day the films are released theatrically. "Black Widow" will debut in July, while "Cruella" will be released on May 28.

“Today’s announcement reflects our focus on providing consumer choice and serving the evolving preferences of audiences," said Kareem Daniel, Disney's distribution chief. “By leveraging a flexible distribution strategy in a dynamic marketplace that is beginning to recover from the global pandemic, we will continue to employ the best options to deliver The Walt Disney Company’s unparalleled storytelling to fans and families around the world.”

The films will be available to Disney+ subscribers for an additional $30 on top of their monthly subscription fee.

The studio also postponed the releases of "Free Guy," "Shang-Chi and the Legend of the Ten Rings," "Deep Water," "The King's Man" and "Death on the Nile."

Disney shares were rising 0.8% to 190.20 in pre-market trading on Wednesday.

The latest move by Disney is seen as a blow to an already struggling movie theater industry that has suffered from the pandemic lockdowns and a new distribution strategy that allows customers to rent new releases at home as opposed to seeing them in theaters.

Shares of AMC Entertainment (AMC) dropped more than 14% Tuesday afternoon on the news, but the stock recovered a bit in pre-market trading Wednesday, rising roughly 2.7%.

AT&T's (T) Warner Bros. and HBO Max have employed the same home release strategy for all major releases this year and plan to continue the practice with highly-anticipated films like "Godzilla vs King Kong" and "Matrix 4" slated to release on the subscription service.

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