Is Disney’s Future Parks or Streaming?

A LOT has happened with the Walt Disney Company this year. There were controversies, the loss of the Reedy Creek Improvement District, dropping stock prices, and a surprising change in CEOs.

It also seems like Disney is split on where to focus its future efforts. There are the Disney Parks, which are doing well even after historic closures in 2020. But there’s also Disney+, which is one of the newest kids on the streaming block.

Okay, so let’s talk about Disney Parks. It’s no secret that Disney has BIG plans for Disney World AND Disneyland, and we got some hints as to what direction both parks might go in at the 2022 D23 Expo. Of course, much of what was suggested for the parks seemed more like ideas, rather than full-fledged concepts, but it does feel like Disney wants to somewhat expand both parks stateside.

It makes sense, too. In the 2022 Q4 Earnings Call, we learned that the revenues for Disney Parks, Experiences and Products increased to $7.4 billion, compared to $5.5 billion during the same quarter in 2021. Then-CEO Bob Chapek stated that the parks often exceed capacity, with new attractions driving demand.

However, there is ONLY so much capacity the parks can take. Disney World and Disneyland would need MAJOR expansions to continue to meet that demand if it continues. That would mean some costly additions to the parks — and, of course, many guests would like to see a fifth theme park in Florida as one of those additions. Disneyland, though, doesn’t have as much space to expand.

Okay, well, what about Disney+? Disney entered the streaming game in 2019, and the service has continued to add content since then, including big-budget Marvel and Star Wars TV shows, as well as a ton of movies. Other original content also appears on the service, including National Geographic content. However, the company quickly learned that streaming ALWAYS needs to be fed more content.

Constantly adding content to the service will also be costly. PLUS there’s the issue with Hulu, which Disney holds a majority stake in. So with so many streaming services struggling right now, Disney could buy the rest of Hulu and create a massive streaming service with even more content. But that doesn’t stop the need for creating more shows and movies for the service.

©Hulu

There is another option, though. The Hollywood Reporter has reported that NBC Universal, the minority stakeholder of Hulu, could end up “making a push to acquire Hulu from Disney, which could be more likely given management changes,” according to an analyst.

This would take Hulu off of Disney’s hands, meaning the company would only have Disney+ to worry about, but at the same time, it creates a smaller streaming service that might not appeal to as many subscribers as a larger one that included Hulu would. However, Disney would also have to make a decision about ABC’s programming that is currently on Hulu — would it stay there or would Disney move that programming to Disney+?

One thing we do know, returned CEO Bob Iger has already started reorganizing Disney’s Media and Entertainment Distribution division. Kareem Daniel, a Chairperson of Disney Media and Entertainment Distribution, was the first to leave the company.

This shake-up could determine the focus of Disney’s future, whether that be Disney Parks or streaming. Ultimately, we expect both sides of Disney’s business to continue, but as to which one will be the company’s priority moving forward, we’ll just have to see.