A new deal signed by Walt Disney Co. DIS might be “smooth like butter” and may provide a boost to the entertainment giant's streaming platform.
What Happened: Korean pop group (K-pop) BTS — one of the most popular bands in the world — signed a content deal with Disney and its Asia Pacific division.
BTS’s management group Hybe Corporation was behind the deal.
"This will be the start of a long-term collaboration, where we present worldwide audiences a wide range of Hybe content for fans who love our music and artists," Hybe CEO Park Ji-won said.
The deal includes the global distribution of five titles, with three being disclosed already.
The titles under the deal that have been announced include:
- “BTS: Permission to Dance On Stage”: A live concert in Los Angeles at SoFi Stadium in November 2021. The concert was the first time the band performed in person in two years due to the COVID-19 pandemic.
- “In the Scoop: Friendcation: A travel show that includes BTS singer V and friends including Choi-woo-shik, star of “Parasite.” The show centers on five friends traveling on a surprise trip.
- “BTS Monuments: Beyond the Star: Docuseries of the band showing the rise of the seven-member K-pop group. The show will provide “unprecedented access” according to the companies.
Related Link: White House Ropes In K-Pop Band BTS To Deliver An Important Message
Why It’s Important: BTS has a loyal following that could help boost viewership and demand for the shows from Disney+ and Hybe, a company that went public in 2020.
On Twitter Inc. TWTR, BTS has over 46 million followers. A tweet by band member Jungkook in 2021 is one of the ten most liked tweets of all time.
On YouTube, the video platform owned by Alphabet Inc. GOOGGOOGL, BTS is one of the biggest stars with songs like “Dynamite,” “Boy With Luv,” “MIC Drop” and “IDOL” all having more than 1.1 billion views each. The band’s 2021 hit “Butter” has over 780 million views for its official video.
In March, a concert film of the band “BTS Permission to Dance on Stage: Seoul” played in 800 theaters for $35 a ticket and made $6.8 million. The movie was the third highest opening of its weekend in theaters.
The new deal could give Disney exclusive, high-demand content for its streaming platforms, which include Disney+, Hotstar and majority ownership of Hulu.
Disney ended the second quarter with 137.7 million subscribers, a figure that was up 33% year-over-year. Domestic subscribers grew 19% year-over-year, trailing 39% growth for the international Disney+ subscribers (excluding Hotstar).
While BTS is popular in the U.S., their massive global audience could help provide a boost to Disney+ subscribers even if temporary around the launch of the new BTS-themed shows.
In the highly competitive market for streaming subscribers, landing a big name like BTS could be a win for Disney in grabbing some domestic and international subscribers.
DIS Price Action: Disney shares are down 3% to $90.30 on Thursday.
Image courtesy of Shutterstock
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