Disney Considers Moving Releases to Disney+ Instead of Theaters

Disney is considering releasing certain productions on Disney+ streaming instead of theaters, a media report says.
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Disney  (DIS) - Get Report said it is considering moving its planned cinematic releases to its streaming effort Disney+ instead of in theaters as Covid-19 cases rise, according to media reports.

The move includes live-action Disney classic adaptations that were scheduled for release, such as "Cruella," "Pinocchio" and "Peter Pan and Wendy," according to Deadline.

Pricing on the films over Disney+ is unclear, the website reported.

Disney has been focusing on the direct-to-consumer approach as it continues to build up Disney+.

Disney+ subscriptions grew to 73.7 million as of October. The growth is attributed to the "Star Wars" spinoff series "The Mandalorian" and the Disney+ release of "Mulan," according to the Deadline.

Last week, the Burbank, Calif., entertainment giant's shares jumped after it reported fourth-quarter results that topped analyst expectations, showing strong growth in its streaming businesses.

Disney reported an adjusted net loss of 20 cents a share on revenue of $14.71 billion. Analysts were expecting a loss of 71 cents a share on revenue of $14.28 billion.

The company's direct-to-consumer and international revenue jumped 41% year-over-year to $4.9 billion.

“Even with the disruption caused by covid-19, we’ve been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth,” Chief Executive Bob Chapek said in a statement. 

“The real bright spot has been our direct-to-consumer business, which is key to the future of our company."

When it first launched Disney+, the company stated that it aimed to reach 60 million to 90 million subscribers by 2024.

At last check Disney shares were trading up 0.4% at $142.30.