Part 10/12:
In the traditional Hollywood model, studios offset such losses through licensing, physical sales, and streaming rights—for instance, selling rights to Netflix or selling DVD/Blu-ray copies. However, Disney has systematically de-emphasized these revenue streams, favoring the rapid release of content through Disney+. Yet, this streaming service is currently operating at a colossal loss and has yet to become a profitable venture.
For example, recent efforts to release “The Little Mermaid” on PVOD (Premium Video on Demand) within weeks of its theatrical debut aim to maximize revenue. However, without substantial physical media sales or Disney+ streaming revenue in the immediate term, recouping the enormous production costs remains uncertain.