Business Maverick: Disney Gains After ‘Mulan’ Fuels Optimism About Streaming Growth

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Walt Disney Co. shares rose the most in more than in a month, fueled by optimism that the online release of “Mulan” will bolster the company’s position in streaming.

Walt Disney shares gained as much as 3.9% to $137.14, the largest intraday increase since Aug. 4, after preliminary data from researchers suggested that that “Mulan” helped spur downloads of the Disney+ app. Deutsche Bank AG also upgraded Disney to a buy recommendation from a hold, citing its streaming prospects.

“Mulan” was the most-watched movie online over the weekend, according to the streaming platform Reelgood, which has 2 million customers. It accounted for 15% of streams for the top 20 titles on the platform, compared with 9.1% for the No. 2 film, “I’m Thinking of Ending Things.”get new films online — an approach called PVOD, or premium video on demand. The Covid-19 crisis, which shut down theaters around the world, has prompted Hollywood studios to experiment with different PVOD strategies.

This approach is more economical than releasing movies through third parties because “Disney keeps more of the revenue, captures the data and adds value to the overall Disney+ subscription,” he said.

 

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