Over the past 18 months, we’ve seen the pandemic cause multiple delays on almost everything in our lives, which has had a significant impact on what content has been released on Disney+. We’ve seen many series and films delayed, including “The Falcon And The Winter Soldier” and “Ms Marvel”. And the resurgence of the new Delta variant has caused more delays for upcoming releases.
Recently, Disney CEO Bob Chapek spoke in a virtual Q&A session at the Goldman Sachs 30th Annual Communacopia Conference and provided a little more insight into the current situation:
That’s actually impacting us across the globe and that’s the impact of COVID-induced production delays, which then is a kink in the supply chain from new content coming to the service. Now, this is very short-term. In fact, it’s so short-term that right now, our studio alone has 61 new movies in production, and they’ve got 17 different episodic programs that are in production. Our TV group has hundreds of new programs in production, and we’ve got 200 local productions across the globe in production.
So the supply chain is healthy just like we talked about last December, it’s flowing, but the resurgence of COVID and Delta did impact some of our productions, so that we’ve got a lighter product quarter in Q4 than we might have expected. All to say, again, we are very bullish and confident about our long-term sub growth, but we are going to see a little bit more noise than I think maybe the Street expects in terms of our ultimate projections quarter-to-quarter.
It’s not a huge surprise to see Disney is still dealing with delays, as it only requires a single test to come back positive for an entire schedule to go out the window. Some areas in the world are still in lockdowns, and restrictions are slowing down production due to a limited number of people being allowed on the set and other issues.
Hopefully, as things improve, production gets back to full capacity and with cinemas, multiple streaming services and television networks to make content for.
This could explain why Disney has pushed back the release of “Ms Marvel” to early 2022, to help fill the void, but it has left Disney+ with a lack of any big heavy-hitting mainstream audience appealing originals.
Shares in the company fell about 3% after Bob Chapek’s statement as many investors realised that Disney still isn’t running on full cylinders yet.
After the last 18 months, we should all be more aware of how things change, and no date is set in stone. Unfortunately, this looks like it might be a problem for a little longer.
What do you think of all these delays?