Disney Pledges $5B to U.K. and European Production for Next Five Years

Disney is set to invest a substantial $5 billion in production across the U.K. and continental Europe over the next five years, according to Jan Koeppen, European chief of the company.

Koeppen, who oversees Disney’s operations in Europe, the Middle East, and Africa, expressed optimism about the sustainability of superhero films. He reflected on the genre’s success following the release of “Deadpool & Wolverine,” which has grossed $903 million globally, setting a record for R-rated film openings. Produced at the U.K.’s Pinewood Studios, the film’s success indicates that Disney is on a roll again when it comes to movies.

The U.K. has been a significant hub for Disney’s production activities for years, with the company having invested approximately $3.5 billion in the country over the past five years. British studios have long been home to iconic franchises like “Star Wars,” with all nine Skywalker saga films produced in the country.

Looking to the future, Disney has several high-profile projects lined up for Pinewood Studios. “Snow White,” “The Fantastic Four: First Steps,” “The Roses,” “The Amateur,” and a new Star Wars film are all in the pipeline.

Disney’s investment strategy also includes leveraging its streaming service, Disney+, as a crucial component for their European expansion. Koeppen pointed out the platform’s broad appeal, noting that more than half of its global subscribers are adults without children.

The company is exploring local productions across Europe as well. Upcoming projects include a TV adaptation of Jilly Cooper’s “Rivals” in the U.K. and “The Lions of Sicily” in Italy.

Despite increasing its European footprint, Koeppen acknowledged challenges in certain markets, particularly France’s film distribution system. He described the French system, which mandates domestic movie quotas and regulates film release windows, as “uniquely complicated and complex.” Koeppen noted that Disney is actively working with French authorities to “modernize” this system to foster competition and enhance consumer choice.

Disney has high hopes for upcoming releases like “Mufasa: The Lion King.” The company is also expanding its theatrical presence in Europe, with ongoing stage versions of “The Lion King” and plans for a “Hercules” musical in development.

While Disney faces stiff competition from rivals like Netflix, Amazon Prime, and Warner Bros. Discovery’s Max, Koeppen remains confident in Disney’s content creation capabilities. He emphasized that their “amazing content” will be the key to long-term success.

Disney’s latest quarterly results reflect this optimism. The record-breaking performance of “Inside Out 2” has boosted profits, and the company’s consolidated streaming business has become profitable for the first time. Total revenue for the quarter increased 4%, reaching $23.16 billion, while operating income surged 19% to $4.23 billion for the three months ended June 29, marking Disney’s Q3 of fiscal 2024.

Source: Financial Times