Disney releases ‘The Rise of Skywalker’ in honor of Star Wars Day

In honor of Star Wars Day, Disney is launching ‘The Rise of Skywalker’ on Disney Plus two months early. Yahoo Finance's Dan Roberts breaks down the details.

Video Transcript

BRIAN SOZZI: Quick reminder, today is Monday. And not only is it May 4, but it is also considered Star Wars Day with may the fourth be with you. Say that a couple times fast. This is usually a time for fans of the franchise to get ahold of new merchandise or content. But Disney is using it as a reason to launch "The Rise of Skywalker" on Disney+ two months early. Yahoo Finance editor-at-large Dan Roberts is here. Dan, does it make sense to release this early?

DAN ROBERTS: Yeah, I think it does, Brian. And what they're really touting is all nine of the Skywalker movies are now on Disney+. All the Star Wars movies except "Solo," which comes later on in June, I believe-- but those nine Skywalker movies, it's a way for them to tout the service and try and reap new subscribers.

Now, of course, the most recent subscriber number we had had for Disney+ was 50 million back in early April. That was shared. And that's a big number. But I expect that when we get Disney's earnings tomorrow, especially because the company is going to be looking for some kind of good news to tout, we might get an updated figure.

And maybe it'll be significantly higher than 50 million. They're trying to add that number right now by saying, hey, if you've held off on paying for Disney+, now you've got the newest Skywalker movie. Don't you want to see it again?

Of course, mixed reviews, more mixed than the other Skywalker movies. But it did very well in theaters. So I suspect that it should work in getting at least a few more people to finally pay up for Disney+ or start their trial.

ALEXIS CHRISTOFOROUS: Hey, Dan. The news the street's really talking about this morning, and probably why the stock is coming under pressure here this Monday, is because of a downgrade by an analyst at MoffettNathanson downgrading Disney to neutral from buy. What's his thought process there?

DAN ROBERTS: Yeah, so this is going to be Disney's Q2 earnings. So it includes February, March, and April. And it's very likely that the earnings will not be good. A lot of people are projecting that even once the coast is clear from coronavirus and various states have reopened-- which of course, is a process already starting to happen-- even once Disney Parks have reopened-- and of course, all the parks in the US are still closed-- a lot of people are now kind of projecting that there will be damage to the parks' traffic even all the way till 2022.

I think that goes a little far personally, but no one really knows anything for sure. And a lot of analysts now are agreeing that the picture is not going to be very rosy for Disney, not only for 2020 but at least 2021. And as I mentioned, a lot of people think it will take a couple of years for the parks to come back. The thinking is, even once the parks are reopened, you know, people might be afraid to go, social distancing. I mean, it's not like the virus is going to be gone completely, even if there is treatment or a vaccine.

So you know, Disney has begun selling character-themed masks. And they're probably going to have to test people even when the parks reopen at the gates. And this changes things. I mean, you know, I think in many ways, the Disney Parks are a bit similar to the problem with summer camps right now. I've been writing about whether summer camps can open this summer.

Someone in an article I wrote said social distancing is the opposite of summer camp. And I think Disney Parks are the same way. I mean, it's very hard to imagine the parks opening and trying to keep people six feet apart and wearing masks. I mean, there are kids all over the place. They're touching everything.

So to bring it back to the MoffettNathanson downgrade, which is to neutral from buy, this analyst makes clear to say we've always been big believers in Disney, especially in the portfolio of IP and their brands. But this time really hurts this company. And it's not just parks and resorts. It's cruises. And it's not just cruises. It's the studio division, because filming is on hold.

So a lot of the Marvel original shows that were slated to hit Disney+ weren't quite finished and weren't quite polished and ready and now cannot hit Disney+ on time and have been delayed. You know, "Falcon and the Winter Soldier," "Loki." Now luckily, "The Mandalorian" Season Two was finished, so that's going to hit at in the fall. But it's even affecting Disney+.

And then of course, if you want a third example of Disney businesses that hurt, ESPN. There's no live sports right now. And that affects ABC, which is also owned by Disney. So a lot of reasons to expect that tomorrow's earnings report is not going to be very good. But if you're a believer in Disney, you believe that this coronavirus hit is eventually going to be handled.

BRIAN SOZZI: Hashtag #DeepThought, Dan Roberts. I've never seen a "Star Wars" movie, but maybe I'll watch that today right ahead of there.

DAN ROBERTS: You must.

BRIAN SOZZI: I know, I know. I know, it's been a tough life. All right, Yahoo Finance editor-at-large Dan Roberts. Thanks so much.