A whole new world as Stan hopeful of keeping Disney

There is increased speculation about whether Stan can hold onto its Disney content in the future with the expected launch of Disney+ streaming.

The Walt Disney Company has lodged two Australian trademarks for its service, the Sydney Morning Herald reports.

Nine CEO Hugh Marks said: “We’d love to extend our relationship with them, we’ll see whether we can or we can’t. Either way Stan will be a good business,” he said.

But he ruled out changing the name of Stan, which would undoubtedly impact on the kind of content it could showcase.

“There are a number of ways for us to look at how Disney+ can get branding in the market without having to change the name of Stan – Stan is an aggregator and always will be.”

Meanwhile the Australian Financial Review quoted Stan CEO Mike Sneesby saying Stan’s scale and the money it paid Hollywood studios for content was meaningful.

“I think there is a perception that Stan licenses content and at the end of a licensing deal, well, maybe that deal is going to end and the studios just pop up shop right next door,” he said.

“The opportunity cost that you have to give up in licensing in a market is significant, particularly when we’re paying a large amount of the licensing fees as part of our sustainable cost base. There is a big marketing cost that you have to invest on top of that to be able to get yourself to a scale where your financial returns are back to where you were as a licensing business.”

Stan’s one-year deal with Disney expires in December.

7 Comments:

  1. I think Disney will cancel with Stan. It was a great idea for Disney to get all their movies etc to Mass Market before launching their own streaming service. It was a great marketing ploy from them.

  2. Jᴏʜɴɴʏ1ᴘ5

    Well Stan that perception of the licensing agreement ending when Disney sets up shop is because that is what they do. If you think they’re worried about giving up licensing fees from someone else then you are being naive as that is what they have done to Netflix and forgoing US$350 million in annual revenue (also no Fox content will be on HBO after 2022). Sure the US may be a different market where they have ABC, FOX and Hulu, however if the price point is right here in a smaller market owning all their content would be a bonus and if it is Disney+ and Hulu they bring here then they’ll want it all (so like in the US Family Shows on Disney+ with more Adult skewing on Hulu).

    When Edihad Stadium became Marvel Stadium (just named 2019 Global Venue of the Year) the cogs where already turning so watch the venue advertising be littered with Disney+ (and maybe Hulu), wouldn’t be surprised…

    • WarnerMedia will also be joining the increasing streaming lineup soon, owned by AT&T it will include HBO and Cinemax, whether this will effect the current HBO offerings seen on pay to view TV elsewhere only time will tell, but the multi billions spent buying these content libraries suggests that some financial return will be expected so selling broadcast rights worldwide outside the USA should continue as before. I would suggest that Disney will likely be doing the same.

  3. rocthecasbah

    They should only get the deal again if they actually put Aladdin in the playlist and fix the random Marvel movies that are missing too.

  4. Geez the deal was only one year? I can smell a lot of complaints if the deal doesn’t get extended considering Disney content on Stan was being advertised heavily and still is. Interesting space to watch…

    • No problem with them heavily advertising a product they have for paying customers. When it ceases that advertising ends and customers can freely cancel Stan if they wish. Not sure what the complaints would be about, not being able to stream Frozen when their demanding 6 year old wants it?

  5. Speculation? The only speculation is whether Disney+ rolls out internationally at launch or not. If it does, and Australia is a launch territory, then no chance of a licence renewal for Stan. If Disney need another year to build their content delivery network then Stan can get another year.

    So, basically, Stan have no say here.

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