Disney + could have another hit original series

Walt disney (NYSE: DIS) came out of the door loud with The Mandalorian topped its list of Disney + originals when it launched in late 2019. The series based in the Star wars The universe has helped propel the streaming service to tens of millions of subscribers around the world.

While subscription growth remained strong through 2020, as Disney + expanded globally, some investors may be concerned about Disney’s ability to grow its library of original titles for the platform. But Disney is showing that it can apply the same formula it uses to create a theatrical success after the fact on the small screen. The new Marvel series WandaVision may be a bigger hit than The Mandalorian. And there is more where it came from.

A strong opening weekend

About 1.6 million households broadcast at least one episode of WandaVision on its first weekend, according to data from Samba TV. In addition, 655,000 people watched the first episode on the day it premiered. That compares to 1.04 million homes for the Season 2 premiere of The Mandalorian in October.

It was one of the most streamed shows of the weekend across all platforms, ranking at the top of ReelGood’s engagement chart with a 9.3% share. This part was way above The Mandalorian season 2 premier, which collected a 5.7% share.

The data suggests that Disney did a great job of marketing the series and pushing it past 87 million global Disney + subscribers when it premiered. Indeed, one of the biggest advantages of Disney’s existing scale is its ability to push its followers to watch what they want them to watch.

Also, Netflix (NASDAQ: NFLX) has been able to revisit traditional marketing over the past year and focus primarily on maximizing the impact of its content investments by showing previews on its home screen. This makes their marketing and content investments more effective. Disney is already on this path, but it has certainly spent a lot of money on ads outside of its own platform to WandaVision.

Double draw

Disney has a lot to do WandaVision. Not only is the series its latest big release for Disney +, it also fits into the storyline of the Marvel Cinematic Universe, which has generated billions in box office revenue for Disney over the years. The move is a departure for Marvel, which has historically separated its TV series from its films.

In addition to attracting additional subscribers for Disney +, WandaVision could also cause them to leave their homes for the next installments of the Marvel film series. While there are several movie releases slated for 2021, Wanda Maximoff won’t make her next movie appearance until the next one. Doctor Strange film in 2022.

WandaVisionThe brand’s popularity could also increase engagement with the 12-year catalog of Marvel films available on Disney +. The entire catalog is now available on the platform following the conclusion of its contractual commitments with Netflix.

The series will also run in the first of The Falcon and the Winter Soldier series in March. Ultimately, both versions of Marvel could help Disney get the most out of its relatively small content library compared to bigger streaming competitors like Netflix.

Running the playbook

Over the years, Disney has built a repeatable playbook offering its fans new content in familiar environments. The strategy took him to dominate the box office in theaters, and now he’s adapting it to streaming. The first results of The Mandalorian and WandaVision indicate that this is paying off, as subscribers show high demand for the series.

Disney plans to expand its original content efforts starting this year. On its Investor Day in December, the company highlighted 100 new titles it plans to release on its streaming services (some of which will hit theaters first). It plans to release 100 new titles per year in the future, and its content budget for Disney + will double its initial expectations by 2024.

All of this is rapidly pushing Disney towards its new outlook of 230 million to 260 million global subscribers by 2024. And if it does, it will become a massive source of consistent free cash flow for the media company. It will stabilize the impact of more variable revenue sources such as box office receipts and park use, while offsetting the decline in its cable networks as more consumers cut the cord.