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When Hamilton landed on Disney Plus last week, it seemed like everyone was clamoring to watch it. In a new company all-hands, CEO Bob Chapek stressed that Hamilton brought in a lot of new subscribers and played an important part in Disney Plus’ growth, according to an audio recording obtained by The Verge.
Chapek didn’t give out numbers on how many new Disney Plus subscribers the movie brought in, but told employees that “there were a lot of them.” More importantly, Chapek — who was joined by Disney’s new head of streaming, Rebecca Campbell — noted that Hamilton was able to accomplish a much bigger task: bring in people who might not have been interested in Disney Plus before.
“a different target audience, a different demographic than what we normally get.”
“That particular audience was very important for Disney Plus because it represented a tangent of an audience that we don’t necessarily get that often on Disney Plus,” Chapek said. “A great percentage of the new viewers that came into Disney Plus, and there were a lot of them, were a different target audience, a different demographic than what we normally get. That was nice to see.”
Disney Plus works for a very specific audience; the company doesn’t have to worry about losing subscribers who use the streaming service to entertain their kids or diehard Marvel and Star Wars fans. It’s other movie lovers that Disney is trying to court. Having a film like Hamilton can help convince someone to spend $6.99 a month on a subscription. Disney could also use its catalog of movies that it got after acquiring 21st Century Fox last year to do the same thing. It helps Disney find a more general audience for Disney Plus and grow the platform.
Data from third-party firms have also shown Hamilton being a whopping success for Disney Plus in terms of engagement and subscriber additions for the company. Chapek spoke a bit about Hamilton’s impact on the country and the world right now, pointing to global conversations taking place about anti-racism and a need for more diverse companies.
“I think it was so impactful because in such a divided country, in such a divided world, there are few things that fit in that Venn diagram in the middle that sort of please everybody and bring us together rather than push us apart,” Chapek said. “I think that’s what the magic of Disney can do. I think that’s the magic of the brand can do. Certainly, what the affinity to the Hamilton product can do for the world and especially for the United States right now. The message of diversity that’s implicit in the production really gives us hope for a better, more unified tomorrow.”
Chapek, who streamed Hamilton at home with his wife and children, said that the fact Disney could release it early and through its streaming service was a major win for the company. He said that Hamilton had actually been slated to come to theaters “in a year or so,” but by being nimble enough to take advantage of this time when more people are streaming than ever before, the company saw strong results.
Chapek blatantly stated that Disney’s streaming division, which includes Disney Plus, Hulu, and ESPN Plus, is “the most important strategic initiative we have going right now, and probably had had going for the last several decades.” Disney Plus was able to “provide some stability in some way” when it comes to Disney’s business and product, Chapek said. He added Disney was “just really lucky that we had the direct-to-consumer business up and running from a content and media standpoint.”
He added that Disney has the opportunity to take Hulu and ESPN Plus to “the next level using the same bold and aggressive forward-looking approach that we did with Disney Plus.”
“Disney Plus has been great for our company for what it is, but frankly that only scratches the surface in terms of what it’s done,” Chapek said.
Although the all-hands meeting was held with employees in the company’s streaming division, another point of conversation was Disney’s decision to start opening its parks in the United States. Disney World in Florida is set to open its doors on Saturday, July 11th, with new social distancing measures in place. Disney’s decision to open the park comes with immense backlash, including from employees (referred to in the company as cast members) who are worried about their safety.
One cast member who works at Disney World, and asked to remain anonymous, told The Verge that she’s disappointed with Disney’s lack of communication with employees and seeming lack of extra precaution when it comes to testing employees.
“The burden is completely on us to determine we’re healthy”
“The burden is completely on us to determine we’re healthy at the time,” she said. “I know a lot of people have already decided to get tested on their own, whether for the virus or for antibodies, but I don’t know if the company is providing any testing.”
Disney will do temperature checks for all guests at the park, but employees are instructed to take their own tests at home. While checking temperature isn’t a surefire way to see if people are carrying the novel coronavirus, Disney employees are left to wonder why they can’t receive the same checks guests get upon entering the park.
“I do believe if one does not have means to take their own temperature, they may request a thermometer but I believe that’s as far as it goes,” the employee told The Verge. “If we suspect we have it, we will be paid for sick leave, but transmission is the huge problem right now.”
While the all-hands meeting was taking place, the Actors’ Equity Association, which represents Disney’s cast members, filed a grievance against Disney over ongoing safety concerns its employees are facing.
Chapek told employees they “can’t afford not to have our cast working for 18 months.” He added that the company has “developed plans to open responsibly.” Chapek also reportedly brought up the idea that Disney Parks are among the safest places to be, outside of employees’ own homes. He said the “issue is not going to be demand for our parks,” but figuring out what the company feels comfortable with doing “given the six-foot social distancing guideline.”
What’s clear from the call is Disney is trying to move forward in what Chapek repeatedly referred to as the “new normal.” Take Disney’s Parks business; that alone generates $20 billion a year in revenue for the company. Disney’s approach to business is to try to find ways to continue operating within the pandemic, instead of waiting for it to be over. Chapek added that eventually, when the company can get back into active movie production, which he hopes is “sometime soon,” working within the new constraints will be a “new normal as well.”