Variety: Disney Commits $5 Billion to U.K. and European Production Over Next Five Years

Story from Variety:

Disney is set to invest at least $5 billion in production across the U.K. over the next five years, according to Jan Koeppen, the company’s European chief.

Koeppen, who oversees Disney’s operations in Europe, the Middle East and Africa, expressed optimism about the continued viability of superhero films. “[The genre] seems to have a lot of life left,” he told the Financial Times, reflecting on the success of “Deadpool & Wolverine.” The film, produced at the U.K.’s Pinewood Studios, has already raked in $903 million globally, setting a new record for R-rated film openings.

“We feel like we’re really on a roll again with movies, which is fantastic. I’ve been positive about people going to the movies again, and especially enjoying our movies,” Koeppen added.

The U.K. has been a significant production hub for Disney, with the company having spent approximately $3.5 billion there over the past five years. Iconic franchises like “Star Wars” have long called British studios home, with all nine Skywalker saga films produced in the country.

Looking ahead, Disney has lined up several high-profile projects for Pinewood, including “Snow White,” “The Fantastic Four: First Steps,” “The Roses,” and “The Amateur.” A new Star Wars film is also in the pipeline.

The investment strategy extends beyond theatrical releases, with streamer Disney+ playing a crucial role in the company’s European expansion. Koeppen noted that more than half of the streaming service’s global subscribers are adults without children, highlighting the platform’s broad appeal.

Koeppen told the Financial Times. “We have been over the past few years, and . . . we have a lot more growth ahead of us.”

The company is also exploring local productions across Europe, with upcoming projects including a TV adaptation of Jilly Cooper’s “Rivals” in the UK and “The Lions of Sicily” in Italy.

While Disney is increasing its European footprint, Koeppen addressed challenges in certain markets, particularly France’s film distribution system. He described the French system, which mandates domestic movie quotas and regulates film release windows, as “uniquely complicated and complex.” Koeppen stated, “It restricts competition and it restricts consumer choice,” adding that Disney is working with French authorities to “modernize” the system.

Looking ahead, Disney has high hopes for upcoming releases like “Mufasa: The Lion King.” The company is also expanding its theatrical presence, with stage versions of “The Lion King” running in Europe and plans for a “Hercules” musical in development.

While facing stiff competition from rivals like Netflix, Amazon Prime, and Warner Bros. Discovery’s Max, Koeppen remains confident in Disney’s content creation capabilities. “We’ve always had amazing content, and that is what really will make us win in the end,” he said.

Disney’s latest quarterly results overall sparked joy for the Mouse House recently — with the record-breaking “Inside Out 2” boosting profits and the company’s consolidated streaming business landing in the black for the first time. Total revenue for the quarter increased 4%, to $23.16 billion, and operating income shot up 19% to $4.23 billion for the three months ended June 29 (Disney’s Q3 of fiscal 2024).