Disney Announces It Will Produce Movies and Series in Brazil

RIO DE JANEIRO, BRAZIL – Disney’s big bet for the streaming market, Disney+ reaches Brazil on November 17th. Despite the current diversity of platforms, the American giant guarantees that it will attract subscribers by exclusively offering its productions, as well as other brands belonging to the group, such as Marvel, Pixar, Star Wars, and National Geographic.

In a conversation with VEJA news magazine, Diego Lerner, president of the group for Latin America, says that Disney will produce movies and series in Brazil, with local actors and directors. “Brazil is one of the ten most important markets in the world,” he says. About an old dream of Brazilians, he says: a theme park in Latin America is not ruled out.

Disney+ premieres in Brazil on November 17th. Brazilians now have a number of streaming platforms like Globoplay, Netflix, and Amazon Prime at their disposal. How do you intend to establish your territory in such a well-serviced market?

Brazil is the main market in Latin America and moves fast because Brazilians are hungry for the digital offer. This is evident in the success that platforms have been having here. But, with all due respect to our competitors, our proposal is unmatched. There is a distinction with respect to the other brands.

No one would wear a shirt printed by these other platforms, for instance. Disney has an unmatched emotional connection with consumers. This is compounded by the differentiated content. It will only be possible to have access to Disney, Marvel, Pixar, Star Wars, and National Geographic content through Disney+. And, in a reduced form, on Disney Channel. There will no longer be the option of online content booking.

We are experiencing a moment of crisis. Will the price of Disney+ be competitive?

We will charge in local currency, not in dollars. We will be in Netflix’s lower price range (currently R$21.90) because we want massive penetration in Brazil.

Will there be content made to order for Brazilians?

Of course there will. We will have content for Brazilians made by actors and directors here. There will be investment in series and movies. The streaming allows us to have this diversification. It is a richer experience than TV, allowing us to offer options such as classics, movies in Spanish, art movies. In fact, everything that is being shown on Disney+ around the world will be available in Brazil too.

Is the investment in streaming in Brazil comparable to other countries you are entering?

Brazil is among the top ten markets for Disney. Therefore, the investment will be proportional to its scale and relevance.

What you are saying is that there is a bet on these brands. Are there research studies that prove this preference?

This has been Disney’s strategy throughout its existence. We always focus on content and not on its distribution. When the company invested in the purchase of Star Wars, Marvel and Pixar, we did it because they were very strong products, with absolute connection with the public.

Why does Disney consider Brazil one of its most important markets?

First, Brazilians are highly attached to technology. Your enthusiasm is impressive. Second, there is a clear reduction of the pay-TV industry in the domestic market, as a consequence of consumers’ migration to digital offers.

Each year, nearly one million Brazilians visit Florida’s parks. Does this relationship of enchantment help in the launching of Disney+?

In most developed countries, Disney is a brand of family entertainment for children. But in Latin America, and particularly in Brazil, an interesting phenomenon occurs. Here, Disney is perceived as a utopia, an ideal world. It is an escape valve from the madness in which we live, with an economic crisis, urban violence. In other words, the complex socioeconomic situation in Latin America gives Disney extra weight.

Did the pandemic boost streaming?

Of course, but it is a temporary situation. I think we are learning about household consumption like never before. And there are lessons that will remain, even when there is a vaccine. With the squeeze on the economy, Brazilians are selective in spending on entertainment.

Cable TV, for instance, has been suffering greatly. You pay a lot for a service that offers over 100 channels. And in fact, you watch ten at most. This kind of product will be more and more challenged. This should trigger healthy competition in the industry.

Is there any service that you consider Disney+’s main competitor?

I’m not belittling other competitors, but I can’t place our products on the same level. Netflix and Amazon Prime have created a digital consumption habit with their own features. But if you go to Netflix, you search for movies and series, not for the brand itself. It’s different in our case.

The investment in streaming can impact other Disney businesses, such as cinema and cable TV. Bob Iger, the group’s ex-president, said he had to face internal resistance to these changes. Where does the conviction lie that streaming will work?

It is not the company’s intention to eliminate other experiences, but rather to create a new one. No one can question the reality that we are experiencing: there is a digital convergence that has come to stay. When Bob Iger decided to create a platform to concentrate all our content, this was well accepted internally, because we believe in our brand value. It’s no coincidence that we’ve reached 60 million Disney+ subscribers in only 11 months.

The release of ‘Mulan’ directly on the streaming platform annoyed movie theaters.

Our movies will be available both in theaters and on Disney+. There will be two windows to watch our productions. We believe that the attitude of going to the cinema will continue, it is a social experience. There are those who prefer to go to the cinema for the experience, there is a giant screen.

And there are those who prefer to stay home. There are audiences for everything. Disney doesn’t want to kill the movie theater. But there is convergence in technology and we need to be pragmatic. I believe that the two forms of consumption will coexist from now on.

But there’s no denying that streaming competes with movie theaters.

Just as it did when the DVD was released. People could wait for it to be released in video clubs and rent it. However, there was no cannibalization as expected. You can’t protect an industry only by an individual decision.

Particularly in a region like Latin America, where consumers are more careful when it comes to spending their money. I think that the world cinema will be transformed. Maybe it will be more segmented and there will be a change in the number of days in which a movie will be on display.

Abroad, Disney+ subscribers paid an extra fee to watch the movie ‘Mulan’. What will it be like in Brazil?

Mulan premieres in Brazil on December 4th and there will be no extra fee here. The same goes for all the other future releases.

‘Mulan’ has been criticized for being recorded in Xinjiang Province, China. Was it a mistake to shoot a film in a region where there is ethnic repression? Is it true that Chinese authorities were consulted regarding the plot and cast?

Disney will never edit a production, allowing room for government interference. We don’t interfere in the politics of any country. We tell tales about values, not about politics or controversial situations.

‘Mulan’ was almost entirely produced in New Zealand. To recreate certain environments, it was also filmed in about 20 Chinese villages. When you shoot in China, you need authorization from local authorities. That’s all that happened. We thank China as well as New Zealand.

Still on the political issue, is Disney in favor of progressive issues? How does the company deal with the conservative wave?

We don’t define ourselves as progressive or conservative. We display powerful values that need to be present in all our activities. In the way we express ourselves publicly, in diversity, in the inclusion of all minorities. It is a mindset open to the reality of the world in which we live.

When you come to a country like Brazil, which at the moment is on a more conservative path, does that somehow make you rethink your plans? Or is it a purely economic decision?

Whenever Disney was forced to negotiate its principles, it chose to stay out of that market. In fact, I can say that this has never happened in any Latin American country.

Last week, the group announced the dismissal of 28,000 people. Are more cuts expected?

It’s a very difficult moment, of a worldwide crisis. The company has 50 percent of its business completely paralyzed, including movie theaters, theme parks, shows. We are trying to tackle the situation with great awareness. In Latin America, for instance, we won’t make any employment cuts. We will reduce costs without dismissals.

A great curiosity of Brazilians is to know if there is any plan to build parks around here. Is it a possible dream?

In the company, we have always discussed the opportunity to build a theme park somewhere in Latin America. For now, I can say that there are no specific plans.

But it is a discussion that has not ended?

It is a conversation that remains on the table.

Source: Veja