nothing like Andor would ever happen again. At first glance, they seemed more than a little egotistical; but that isn't how they were meant to come across.

That isn't how they were meant, of course. " "Not because we’re so great," he clarified, "but because no-one’s ever gonna start a show on this scale again, and shoot it practically, and have the resources and the protection to do something like this." Now, speaking at the ATX TelevisionFestival last Thursday, he's explored exactly why that's the case - and the reason is pretty shocking.

According To Tony Gilroy, "Streaming Is Dead"

Gilroy dropped something of a bombshell during the , when he openly discussed Andor's $650 million budget. "I mean, [for] Disney this is $650 million," he reflected, and then proudly added that he only ever had one note requesting a change for season 1. "In Season 2, they said, ‘Streaming is dead, we don’t have the money we had before,’ so we fought hard about money, but they never cleaned anything up." His thrust, of course, was the remarkable creative freedom he's been given; but that apparently throwaway comment, "streaming is dead," stands out.

Disney entered the streaming race six years ago, with the launch of Disney+. The pivot to streaming was one of the major drivers for Disney's $71.3 billion Fox purchase, because the House of Mouse needed a larger content library to be competitive. In addition, Disney required every studio to focus on content for their new streamer, in accordance with the argument that successful streaming platforms are dependent on new content.

It's long been clear Disney is shifting focus again, moving back towards theatrical releases. Marvel Studios has cut down on the number of MCU TV shows, while only one live-action Star Wars TV show has been confirmed - Ahsoka season 2, now in production and due out next year. Lucasilm and Marvel both intend to be "ramping up" movies instead. What's actually going on?

What's Gone Wrong With Disney+?

Disney+ was a hit in of subscriber numbers, dramatically exceeding Disney's wildest dreams. In spite of that, though, it's been a loss-making venture for the House of Mouse; according to Forbes, the Direct To Consumer (DTC) division reported operating losses of $11.4 billion between the platform's launch and April last year. Stringent cost controls, the launch of a new ad tier, a crackdown on sharing, and other measures improved matters by the first quarter of 2025.

Streamers are essentially spending money just to stand still in of subscriber numbers.

In truth, the problems are inherent in the streaming model itself; there's a risk of "churn," with subscribers canceling until new shows they're interested in are released. This results in significant pressure to have a constant stream of new content, in order to keep subscribers engaged. The market for this content has grown increasingly competitive, with costs ballooning, but streamers are essentially spending money just to stand still in of subscriber numbers.

Meanwhile, there's been real concern that the pivot to streaming has damaged theatrical releases for Disney. Pixar movies released on Disney+ during the pandemic, and there are indications the brand was damaged, with dramatically reduced box office takings afterwards. Marvel Studios' Disney+ TV shows are now seen as diluting the MCU's brand, while the studio lacked the bandwidth to properly produce these shows and movies - meaning quality has declined. Lucasfilm faced similar bandwidth problems, which helps explain why it's been six years since we had a Star Wars movie.

Disney Is Working Hard To Fix The Streaming Problems

Disney isn't getting out of streaming, of course; rather, I think we're heading into a period marked by a very different strategy for Disney+. There were initial hints of this as far back as February 2023, with reports Lucasfilm was under orders to "ramp up" movie production ahead of Star Wars Celebration 2023. Since then, it's become clear that Disney studios are back to focusing on theatrical releases. These releases then drop exclusively on Disney+.

There will still be Disney+ releases, of course, but these won't command anything like Andor's budget; they'll also include originals such as Percy Jackson, where costs are kept under much more careful control. But the sheer size of the aforementioned content library increasingly feels like Disney+'s biggest selling point. Last year, Nielsen data revealed that Moana has been among the four-most-watched films on any streaming service every year since the launch of Disney+ - showing this library's consider value.

It's probably an exaggeration to say that "streaming is dead." But it does feel as though a Rubicon has been crossed, a moment where the industry has changed. I can now see why Tony Gilroy faced more budgetary challenges over Andor season 2 than with the first season - and I think he's right that there will never be anything quite like it again.