Boardwalk Times: Stories from the Seashore — A Look Back at Disney’s Tumultuous Year
Originally published on March 29, 2021.
Bob Chapek would become the CEO of Disney on February 25, 2020. At the time Chapek and the world thought coronavirus would just be a “bump in the road.” Chapek would take over Disney at the worst time possible and he would have to navigate the financial whirlwinds of a unprecedented pandemic.
Hong Kong Disneyland and Shanghai Disneyland closed on January 25, 2020. Tokyo Disney Resort would close on February 28. Disney Cruise Line would stop sailing on March 12.
Then it was announced on March 15 that Disneyland Resort, Walt Disney World Resort, and Disneyland Paris Resort would all close. It would be a moment in history as it was the first time that all six parks were closed at once (add on for extended periods of time). Disney would also temporarily suspend the Disney College Program and other internship programs.
Chapek and Iger would take pay cuts. But still that wouldn’t help Disney’s inevitable tough decision-making. With all their theme parks closed and without theater revenue. Disney would have big decisions to make even though most of them wouldn’t come til later.
The parks weren’t the only part of The Walt Disney Company that was affected. Walt Disney Studios and Television productions had to shutdown due to the virus and release dates had to be shifted. Let’s take a look at some of the prominent ones.
The Release Date Shuffle
Jungle Cruise (moved from July 24, 2020 to July 30, 2021)
Untitled fifth Indiana Jones film (moved from July 9, 2021 to July 29, 2022)
Raya and the Last Dragon (moved from November 25, 2020 to March 12, 2021, and again to March 5, 2021)
West Side Story (moved from December 18, 2020 to December 10, 2021)
Three new Star Wars films moved from December 2022, December 2024, and December 2026 to December 2023, December 2025, and December 2027.
Black Widow (moved from May 1, 2020, then to November 6, 2020 and to May 7, 2021 to July 9, 2021 — First Marvel film to be available on Disney+ Premier Access )
Shang-Chi and the Legend of the Ten Rings (moved from February 12, 2021, then to May 7, 2021 and to July 9, 2021 to September 3, 2021)
Eternals (moved from November 6, 2020, then to February 12, 2021 and to November 5, 2021)
Spider-Man: No Way Home (moved from July 16, 2021, then to November 5, 2021 and to December 17, 2021)
Doctor Strange in the Multiverse of Madness (moved from May 7, 2021, then to November 5, 2021 and to March 25, 2022)
Thor: Love and Thunder (moved from November 5, 2021, then to February 18, 2022 and to February 11, 2022 and again to May 6, 2022)
Black Panther II (moved from May 6, 2022 to July 8, 2022)
Captain Marvel 2 (moved from July 8, 2022 to November 11, 2022)
Disney+ grew during the pandemic but the pandemic also caused Disney to shift some of its theatrical films over to the streaming service due to the lack of a theatrical box office and Disney+’s lack of originals due to production delays. For example, even though Disney paid $75 million to distribute Hamilton in theaters they moved the film over to their streaming service and Disney+ saw a huge jump in subscribers.
Disney would also shift The One and Only Ivan and Artemis Fowl from theatrical to Disney+. By September, Mulan would premiere on Disney+ Premier Access. Soul would also premiere on Disney+ but free to subscribers on Christmas.
Shanghai Disneyland was the first of the Disney Parks to reopen. By July 2020, Walt Disney World would reopen with limited capacity and other safety measures. Tokyo Disney Resort along with Disneyland Paris Resort would reopen but the latter would close again in October due to a surge in COVID-19 cases. Other Disney Parks like Disneyland would have a longer path to reopening.
In September 2020, Disney would announce it would lay off 28,000 cast members due to the massive effects of COVID-19 on its businesses. 67% would be part-time workers. The mass layoffs were gut-wrenching and it was a sign that Disney Parks, Experiences, and Products would have a long road to recovery in both revenue and in employing cast members who make the magic possible.
In October, Disney would restructure itself creating one single media and entertainment distribution division known as Disney’s Media & Entertainment Distribution. The division would help streamline the company’s efforts at becoming a direct-to-consumer company.
Even in 2021, Disney is still feeling the business after effects of the pandemic like shuttering Blue Sky Studios as Disney decided they no longer thought a third animation studio was viable. Then March brought the news that Disney would shutter 20% of its brick-and-mortar Disney Stores in North America pointing to more operational cuts across the board and Disney’s message of truly becoming a direct-to-consumer company.
Disney announced at its Annual Shareholders Meeting that Disney+ had 100 million subscribers. The streaming service was Disney’s crown jewel during the pandemic and it became the undeniable future of The Walt Disney Company.
Disneyland will finally reopen on April 30, 2021. Disney is also using its struggles from the past year with the California government to launch a movement called DisneylandForward, which has Disney seeking California to change its rules regarding how Disney’s uses its land for expansion. The movement if approved will create jobs for California’s economy.
The pandemic is nearing its end but Chapek and the gang find themselves making tough decisions like Black Widow becoming a theater/ Disney+ Premier Access title. Although it seems like theaters are coming back they had to still make a super tough decision there. It will be interesting to see if it pays off. As majority of the country will be vaccinated by July, making theaters a more suitable option than the Disney+ upcharge. Marvel is the one property that always brings in a huge box office. So, not going all in on theatrical may end up hurting themselves instead of letting the free market decide.
The year to year difference in Disney’s stock price shows a company that survived even though it may still have the scars to show for it. Disney’s stock price on March 27, 2020 was $96.40 and almost a year later on March 26, 2021 — fueled by Disney’s overwhelming success and positive vaccine news — Disney’s stock price closed at $185.92.
Chapek and Disney still have a lot to clean up in a post-pandemic world. Disney+ is the future but your other divisions have to recover. Disney+ can’t be your only line of substantial revenue. You need the theatrical box office and theme parks to return to full strength. You’re going to also have to invest in your theme parks so you don’t lose ground to your competitors. There is a lot that still needs to be done and hopefully Disney is up for the challenge.
Despite the pandemic winding down, Disney still has challenges ahead. Let’s take a look back at this in March 2022.
‘Luca’ Moves to Disney+
When Disney announced their reshuffling of dates and distribution plans. The one move that upset a ton of fans and media members was that Luca would be available to stream for free on Disney+ and that the film wouldn’t be given a traditional theatrical run.
Which as a pro-theater guy I totally understand the disappointment in Luca being a direct-to-Disney+ film but… let’s break this move down.
No, Disney isn’t giving up on Pixar. Are the optics bad that the last three Pixar films have all been basically straight to Disney+? Totally! But it’s also a key sign that the data is telling Disney that these films keep subscribers engaged and animated films have a rewatchability factor.
Disney also has to give away some kids content to entice subscribers because Netflix, HBO Max, and new competitor Paramount+ aren’t backing down from ramping up quality kids animation content.
Here is why Luca is a good straight to Disney+ candidate:
It’s an original IP so that’s a risk. Add in that the box office won’t be at full strength and that’s a problem.
Premier Access is essentially Disney’s way of sacrificing a film. Not a lot of subscribers are going to pay $30 to see a film (even Luca they wouldn’t pay for). PVOD doesn’t work but it may work for something major like Black Widow (even though people in the U.S. should be in theaters by then considering majority of the country will be vaccinated).
Premier Access is Disney’s way to get films off the slate like Mulan and Cruella. Disney got to a point where they realized they probably would lose money on both films so minuswell let it be a part of this “experiment.”
Luca is an animated film that probably suits the Disney+ expansion better than it would at the box office. After watching Soul I completely understood why the film was moved from theatrical to Disney+. If Luca is as deep and as sophisticated as Soul I could see that playing a part in the move to Disney+.
In the end, Luca coming to Disney+ is a good thing! It gives Disney+ a brand-new original film to kickstart the summer. It’s a shame it won’t be in theaters but then again DMED is gonna DMED. They have to make those tough decisions all in the name of churn, subscriber retention + engagement, and increasing value.
LINKS OF THE MONTH
— A feature on Kelly Marie Tran detailing Raya and the Last Dragon and how she overcame the hate and bullying she received after The Last Jedi. "She would introduce herself to everyone on the crew,” says The Last Jedi’s Johnson. “She’d poke her head in departments and ask, ‘What do you guys do in here?’ I’d turn around and she’d be helping sew in Porg feathers.” (The Hollywood Reporter)
— Boardwalk Times newest pod series Legacy of that Shield is an after-show to The Falcon and The Winter Soldier. You should check it out to hear the entire cast’s reactions, fan theories, and universal love for Sebastian Stan and Anthony Mackie. (Listen on Spotify or Apple)
— Universal is resuming construction on Epic Universe! This is a great sign for the themed entertainment industry. (Orlando Informer)
— Black Widow and other Disney films change dates. Black Widow becomes the first Marvel Studios title to premiere in theaters and on Disney+ Premier Access. (Boardwalk Times)
— Miley Cyrus writes a note to Hannah Montana? A Twitter account? Miley Cyrus chasing the Disney+ bag for a Hannah Montana continuation? (Variety)
— Peter Docter really knows how to make people cry. (Los Angeles Times)
— Bob Iger may be leaving Disney at the end of the year. But he won’t be retiring. (The Hollywood Reporter)
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See you next month for a new edition of Boardwalk Times: Stories from the Seashore!