Analyst Reacts To Disney Indefinitely Delaying 'Mulan' Release

Walt Disney Co DIS said Thursday it will indefinitely delay the theatrical release of its "Mulan" film and management is likely considering the possibility of a streaming release on Disney+.

What Happened: One of the deciding factors that would impact where and when "Mulan" is released would be if consumers even want to return to theaters, Rosenblatt Securities analyst Bernie McTernan said during a Fox Business interview. Typically, Disney generates a higher return on investment if a movie goes through the theater channel first.

But so far, McTernan said there hasn't been a studio to take the plunge and release a big-budget film on a streaming channel first. However, studios are releasing a lot of content to streaming channels. This certainly benefits streaming video providers like Netflix Inc NFLX, where streaming data is "off the charts."
Why It's Important: McTernan said there are some questions related to the sustainability of the recent growth in streaming content. Specifically, Netflix highlighted in an investor deck presentation that net customer additions may have dipped negative at the end of June.

"We are really wondering if this is just a pull-forward of demand instead of a TAM [total addressable market] expansion," the analyst said.

What's Next: The at-home fitness industry may be more attractive for investors, especially Peloton Interactive Inc PTON, the analyst said. A proprietary survey found that 40% of respondents are "at least three months away" from wanting to return to a gym or waiting for a vaccine.

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