‘Mulan’ release postponed in China due to Coronavirus

Walt Disney has announced to have postponed the release of Mulan in China due to Coronavirus (COVID-19). In FY19, Disney grossed $11.1 billion revenue from its movie releases. While 2020 also had a few big releases, it wasn’t expected to match The House of Mouse’s performance last year. But the outbreak of Coronavirus has stalled Disney’s momentum. Mulan was supposed to be released in China this month, and it was expected to be one of Disney’s biggest releases of the year, but with theaters closed all over China, it has been postponed. Mulan is set to hit big screens on 27 March in the U.S.  Mulan had a budget of $200 million and was specifically aimed at a Chinese audience given its significant roots in Chinese lore. China in general has been a crucial market and Disney relies on international markets to pad its studios revenue. Last year, The Lion King made $543 million at the box office domestically but generated $1.1 billion in ticket sales overseas.  The spread of Coronavirus presently seems to have slowed down in China, with over 80,000 cases reported till date in mainland China. Apple has already reopened its factories and some stores there, so the situation in China may be stabilising, which might limit the impact on Disney. Overall, Disney has certainly been affected by the worldwide outbreak, given its theme parks also been temporarily closed in Shanghai and Hong Kong, which makes up roughly half of the company’s annual revenue.