In a move that sent shockwaves throughout the video entertainment industry in the region, Disney has announced that it is pulling the plug on 18 channels effective October 1 this year.
According to a news report by ContentAsia, the decision was announced to Disney staff in Singapore during a townhall meeting on April 27 (Tuesday). It is unclear how many people would leave the company as a result of the move.
What is clear is that after two decades, 18 Disney-owned channels will disappear from Southeast Asian networks as the company ramps up efforts to expand its direct-to-consumer business, which consists of Disney's streaming services like Disney+.
The Disney+ streaming service has surpassed
100 million
global paid subscribers since its initial launch on November 12, 2019.
Disney+ is already
available
in Indonesia and Singapore, and the service is expected to become available in other Southeast Asian countries like Malaysia in the months to come.
List of services affected:
Disney:
Disney Channel, Disney Junior
Fox:
Fox, Fox Crime, Fox Life, FX, Fox Movies, Fox Action Movies, Fox Family Movies, Fox Sports, Fox Sports 2, Fox Sports 3
(It's worth noting that Fox's sports channels own rights to major sports events like Formula One, Australia Open, US Open, Wimbledon and French Open).
National Geographic:
Nat Geo People
Star:
Star Movies China, SCM Legend, Star Sports 1, Star Sports 2
Music:
Channel V
Only four networks will make the switch the direct-to-consumer streaming model, namely Chinese-language channels Star Chinese Channel and Star Chinese Movies, and factual entertainment channels National Geographic Channel and Nat Geo Wild.
In a statement sent to
Lowyat.net
, Disney confirmed that it is pivoting towards a direct-to-consumer-first model to further grow its streaming services.
"Effective 1 October 2021, Disney will operate a streamlined television portfolio that covers Chinese language channels (Star Chinese Channel; Star Chinese Movies) and Factual Entertainment (National Geographic Channel; Nat Geo WILD).
"These efforts will help us align our resources more efficiently and effectively to current and future business needs."