Disney will Boost Investment in Disney Plus Through 2024, Focusing on Global Content Expansion, Worldwide Content Expanding, and Expand Content Over 2025, Disney is intending to bolster investment in the company's wealthiest assets
Disney CEO Bob Chapek told investors Wednesday that the company is increasing its multibillion dollar spending on content for Disney Plus as it adds more local and regional content to worldwide audiences.
The amount would now rise. In December of 2013 Disney projected that it would spend between $8-$9 billion on content for its premiere streaming service in 2024, and Chapek said that would increase.
As you know, we announced last Investor Day that we expect our total content expense to be between $8 and $9 billion in fiscal 2024, and we will increase that investment further, with the primary driver being more local and regional content, Chapek said on Disneys Q4 2021 call.
The Disney chief wanted to win a big relaunch on Disney Plus, after the media conglomerate gained only 2.1 million subscribers for its flagship service in the September 2021 quarter well under Wall Street forecasts and the slowest growth since it launched two years ago.
Aside from the fact that there are more than 340 local titles in various stages of development to be released on Disney Plus over the next few years, Chapek said, and the emphasis on local and regional content is key as the company announced that Disney would be available in more 120 countries by next year, compared to roughly 60 countries now.
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We are now in over 60 countries and more than 20 languages, and next year, we plan to bring Disney Plus to consumers in 50-plus additional countries, including Central, Eastern Europe, Middle East and South Africa. Our goal is to more double the number of countries we currently in to over 160 by fiscal year 2023.
The COVID pandemic delays disrupted the planned rate of series and film premieres until the second half of 2022, when the "dam will break" on the highly anticipated titles revealed at the December 2020 investor day.
The majority of our highly anticipated titles will come to Disney Plus in fiscal year 2022, with the majority coming from July through September. This is the beginning of the surge of new content shared last December at our Investor Conference 2.0, Chapek said.
Chapek highlighted the titles such as Hawkeye and The Book of Boba Fett, Battle of the Beatles, Get Back or Encanto for the end of 2021.
In this current quarter, the studio will release nine titles until the end of the year, compared with only two in the quarter. She said that the continued recovery we had in theatrical and increased costs owing to higher programming and marketing costs.