Part 8/13:
The Business Model Shift: Merchandising Over Box Office
A significant aspect of Hollywood's current economics involves a strategic pivot: movies are increasingly serving as advertisements for merchandise rather than standalone revenue streams. Disney, notably, keeps its content self-contained, avoiding licensing out to platforms like Netflix and instead emphasizing direct-to-consumer streaming via Disney+. Yet, this strategy faces obstacles, as streaming viewership often fails to translate into new subscriptions, let alone significant ancillary revenue like merchandise sales.