Disney's decision to bypass theaters for 'Mulan' sparked outrage among cinema chains worldwide, transforming the landscape of film distribution during the pandemic.
In a significant move that redefined film distribution during the pandemic, Disney announced the direct-to-Disney+ release of its live-action remake of Mulan on September 4, 2020. According to ComicBook.com, this decision was met with considerable backlash from theater chains around the globe.
Originally anticipated as a major theatrical release, Mulan was affected by the COVID-19 pandemic, which drastically altered the film industry's landscape. Rather than delaying the film alongside other major releases like Black Widow and Dune, Disney opted for a strategy that allowed Mulan to be sold on Disney+ for an additional fee of $29.99 to subscribers in the United States. Meanwhile, theaters had reopened, but they faced diminishing box office returns, with no film grossing over $500,000 due to reduced audiences. This decision angered theater operators, who viewed it as a betrayal amidst their efforts to recover financially from the pandemic.
Despite the theatrical availability in selected international markets, Mulan grossed only $69 million globally—a stark contrast to the original 1998 animated film, which earned over $300 million. The contrasting revenues led to outrage among cinema chains, particularly due to Disney's decision to retain all profits from the Disney+ sales while theaters saw none. One prominent incident even involved a theater owner in France destroying an advertisement for Mulan with a cricket bat, a viral moment that illustrated the deep frustration within the industry.
Although Mulan did not perform well at the box office, Disney's release strategy set a precedent for subsequent films during the pandemic. In 2021, Disney followed a similar model with films like Raya and the Last Dragon, Cruella, Black Widow, and Jungle Cruise. While these films earned more than Mulan, they still underperformed relative to their substantial budgets. Theater chains responded negatively, with AMC openly criticizing Disney's decisions and Cinemark refusing to screen Raya and the Last Dragon as a protest.
Fast forward to 2022 and beyond, and the tensions between Disney and theater chains appear to have eased somewhat. The premier access model has not been utilized since that period, and Disney has successfully released several major hits in theaters, including more live-action adaptations. Nonetheless, the strategic choice made for Mulan stands as a pivotal moment that initiated significant shifts in Hollywood's distribution practices.
The release of Mulan directly to Disney+ represents not just a response to an unprecedented global crisis but also a long-term change in how studios might approach film distribution in the future. While tensions with theater chains have cooled, the shift has marked a new era in the film industry that seeks to balance traditional theatrical releases with the growing popularity of streaming services."
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