Report: Disney+ Generated $270 Million in ‘Mulan’ PVOD Sales

The Walt Disney Co.’s calculated foray into premium VOD distribution for original movie Mulan reportedly has been a fiscal home run. Yahoo! Finance, citing data from 7Park Data, contends the movie has been purchased by 9 million Disney+ subscribers for $29.99 each through Sept. 12. That tally would suggest the $200 million budget movie, which was released on Sept. 4, has generated an impressive $270 million in direct-to-consumer revenue.

Unlike a typical PVOD transaction that gives a viewer a limited time period, usually 48 hours, to watch the movie, the Disney PVOD system, dubbed Premier Access, is set up to allow Disney+ subscribers to pay the premium fee to unlock the movie on Disney+ for as long as they are subscribers, effectively giving those who pay early access to the movie before it becomes available to all subscribers in a few months.

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App download tracking firm Sensor Tower previously disclosed that downloads of the Disney+ app skyrocketed 68% through the Labor Day weekend (Sept. 4-6), compared with the previous-week time period. Samba TV, which tracks viewership on smart TVs, reported that 1.1 million U.S. households watched Mulan on Labor Day weekend.

Disney has not officially released any Mulan sales data, but CFO Christine McCarthy Sept. 10 told an investor group the media giant was “very pleased” with PVOD sales data thus far.

The results, if true, would be another dagger to the theatrical window and suggests that Disney’s theatrical brand resonates (at significantly higher margin) as much with consumers in the home as at movie theaters. Disney generated a staggering $11.1 billion at the global box office in 2019 — including 33% of all domestic box office ticket sales. It was the first time a studio had controlled that much of the North American box office since 1999, according to Comscore.

Regardless, the movie, which stars Liu Yifei in the iconic Mulan role, had received middling reviews, plenty of controversy over filming locations in China accused of violating the human rights of ethnic Muslims, and lackluster box office sales in the Communist country.

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