Well, change is inevitable.
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We’ve seen content come and content go on platforms like Netflix and Disney+ for years now. Most recently we’ve seen a lot of shows and series leaving Disney’s streaming platform and we wanted to share with you some insight as to why this is happening.
Disney+ recently announced the removal of over 40 series and films from its streaming platform, sparking questions about the motivations behind these decisions. With some insight from industry insiders (via ScreenRant) about factors that play a significant role in these content removals, let’s see if we can get a better understanding of what it all means for Disney+ subscribers.
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Let’s start with licensing. Licensing fees, paid to content owners, are the primary expense for streaming services like Disney+. Removing shows and films allows Disney to save money by avoiding these fees. Contrary to popular belief, artist residuals play a smaller part in the overall cost of streaming content. This means that licensing fees are a significant driving factor behind the removals.
©Disney
When Disney removes a show or film, they incur an impairment charge, writing off the content’s cost as not worth the investment. While this prevents the content from returning to Disney+ during the impairment period, it also allows Disney to explore other distribution and monetization options.
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The majority of removed titles are canceled shows from Disney+ or its affiliates, which indicates a higher risk of removal for such content. It also suggests that Disney+ might shift its focus away from smaller family comedies and prioritize established franchises. However, the removal of titles doesn’t necessarily mean they are lost forever. Similar to previous experiences, licensing deals could bring these titles back on free streaming platforms with advertisements.
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While some removed titles on other streaming services, like HBO’s Westworld, have found new homes on free streaming platforms, others have yet to resurface. This does raise questions about the future direction of Disney+. The platform’s content strategy will likely be shaped by ongoing evaluations of value and licensing opportunities.
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Overall, by removing content, Disney aims to reduce expenses while exploring alternative distribution and monetization options. That means subscribers should be aware that some of their favorite canceled shows and smaller titles face a higher risk of removal, but they might see those titles potentially resurfacing on other platforms with ads. As Disney+ continues to adapt its content strategy, subscribers can anticipate further adjustments and an evolving streaming landscape.
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In the meantime, we recommend getting caught up with all your favorite shows on Disney+ and click the link below to find out all that’s coming to the platform in June. We’ll let you know about any other Disney+ TV shows and movies, so stay tuned to DFB for more.
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It makes cents (pun intended) to remove most of the “underperforming” content and get the write-off. Disney+ overpaid for content and went for a lower entry price point hoping that the number of subscribers would offset the difference. It didn’t, this is what happens when these “assumptions” fail to materialize.