Disney Channel, Disney XD and Disney Junior will cease to exist in the United Kingdom on October 1, as Disney moves the titles of those channels exclusively to Disney Plus.
The move comes after Disney failed to reach a distribution agreement with Sky and Virgin Media, according to a trade publication. To transmit. Sky, owned by Comcast, is one of the UK’s largest pay TV services. Sky’s premium pay-TV service Sky Q also offers Disney Plus to its customers. Disney’s other television channels, including National Geographic, Nat Geo Wild and Fox, will continue to air. Sky will also continue to carry non-Disney shows, including ViacomCBS ‘Nickelodeon channel.
Attracting more than 54.5 million subscribers worldwide in its first seven months, the direct-to-consumer service will now premiere all the latest movies, series and specials from all three Disney channels, in addition to offering a rich and expansive Later catalog of Disney Channel Titles in the UK,“Disney said in a statement to Hollywood reporter.
This is not the first time that Disney has removed its channels from certain stations. In late 2019, the aforementioned Disney channels were removed from Sky in New Zealand. It happened shortly after the launch of Disney Plus. With Sky and Disney in the UK now echoing those moves, questions have arisen over whether Disney will be removed from television in the US The quick answer is no, at least not soon.
“The Walt Disney Company remains committed to the business of our children’s channels and continues to execute distribution agreements for Disney channels in many markets where Disney + is also available,” said a Disney spokesperson. Hollywood reporter.
On the surface, this story is about a simple transportation dispute. These happen all the time. Cable operators pay for networks and studios to transport those channels. If networks, studios and cable providers cannot reach an agreement, operators stop broadcasting certain channels. This often happens with local sports affiliates. “Blackouts” refer to periods when such channels are not available. Often customer pressure puts enough weight on companies to find a middle ground and make a decision.
Except that at the center of this debate is Disney Plus. Disney can refocus its efforts on building a streaming empire, where they retain a higher percentage of revenue through direct subscriptions than with linear television in markets like the UK. Instead of playing catch with Comcast to carry the channels, Disney can point everyone to their crown jewelery streaming service. If people want access to a catalog of classic Disney Channel titles and ongoing series, they will need to sign up for Disney Plus.
In a 2019 earnings call, Disney Chief Executive Officer (and later CEO) Bob Iger told analysts that Disney Plus “is a gamble for the future of this business.” That includes almost every part of Disney’s business, from his studio movies (some of which are now targeting Disney Plus as exclusive) to elements of his television business. That doesn’t mean Disney is going to suddenly give up on television: ad revenue is not something Disney is going to shy away from. But in areas where it might make more sense for Disney to give up having a linear presence on television and move things exclusively to Disney Plus, it’s something we might start to see happen more regularly.
