The recent expansion of The Walt Disney Company’s (NYSE: DIS) premier streaming service, Disney+, has sparked debate among US subscribers. However, in terms of financial success, the choice to add additional shows may make more sense in the long run.
The firm has been chastised for adding films and series rated for adult audiences to the list of content available in the United States. Some viewers thought it was a mistake considering Disney+ is primarily a family channel.
At the same time, the media behemoth has never made any explicit guarantees concerning the material, so the criticism that has developed is more likely the consequence of certain American consumers’ misguided assumptions.
Because of the fierce competition, Walt Disney is growing its collection with more adult-rated films and shows. The majority of competing services feature specific locks that allow parents to regulate what their children see.
As a result, the selected streaming operator has no trouble storing R-rated films in its repertoire (those under 17 years of age are admitted only if accompanied by a parent or guardian). Outside of the United States, Disney+ contains films with this classification, although, in the United States, the selection was previously limited to just family-friendly items.
Disney+ management stated at the start of the year that the rich content library has become one of the key drivers of development in international markets, thus the firm aims to expand the offer to the US market. Despite opposition from certain neighborhood organizations, this might be a win-win situation for Walt Disney in the long term.
The United States has the world’s largest video streaming market, valued at around $34 billion, or 85 percent more than China’s second-largest market. Any severe content limitation might harm Disney+’s competitive position in the United States and result in subscriber losses. The extension of the library, on the other hand, will help the corporation maintain its leading position by making Disney+ a more diverse and comprehensive platform.