Disney: The Monopoly
For years now, most prominently since the Fox merger, audiences have been scared and cautious of the possibility that Disney becomes an entertainment monopoly. Some argue it already is.
Let’s look at the definition for a ‘monopoly’:
the exclusive possession or control of the supply of or trade in a commodity or service.
The ‘exclusive possession’ so via this definition, Disney is most certainly not a monopoly. After all, the company doesn’t own the whole entertainment industry.
However, Disney’s impact on the entertainment industry is becoming bigger and bigger and even more evident than ever. While they may not hold a direct stake at many other big production and distribution companies, their actions can and do affect the whole industry.
The news of this week:
Disney announced a new business model that focuses on streaming. Under this model, Disney is refocusing all of its money and energy and aiming those more towards Disney+ and less towards theatrical releases.
Disney CEO Bob Chapek has stated that under this model, a film release is not determined by the film’s grandeur, by its award potential, or the need to support exhibitors. There is one defining factor: where will the movie make more money? Bob Chapek has stated that ‘the consumers are the ones who make these decisions’ a.k.a. supply and demand. Is there more demand for video of demand? If yes, then new Disney films will go on Disney+. Simple as that.
Which brings us back to the original point in question —
Is Disney a monopoly? Again, via definition, no, but this might as well change everything as this action might have ripple effects over the whole industry. If Disney decides to move primarily to streaming, then movie theatres are going the way of drive-ins and may soon be completely forgotten.
We may sound dramatic, but we are not. Disney owns Star Wars, Marvel, Fox, and Pixar. Seven of the ten highest grossing films of 2019 were a Disney production. This company alone is responsible for a huge amount of movie-goers leaving the comfort of their couch and dragging themselves to the local cinema to see Avengers: Endgame on a Sunday.
If these blockbusters are moved to VOD, movies theatres will be dramatically impacted. Cinemas, all cinemas, will become a place for art house flicks and obscure indie releases. They will be a thing of the past. A thing with nostalgic value.
We are not ridiculing Disney for this decision. It’s just business.
They want to make more money. The consumer wants to stay home. The decision makes sense for all parties.
We only ask you to keep in mind your local cinema. Go there. Watch some obscure indie flick, you might be surprised. (Obviously, be mindful of the pandemic and go only if it’s safe & sanitary.) Disney is not a monopoly via definition, but it might as well be. It doesn’t own the whole entertainment industry, but it can (and already does) control the whole industry. It’s decisions affect us too. And we, the self-proclaimed cinephiles, need to strive to keep alive the thing we love dear: cinema.
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— Pouty Boy