Disney CEO Reveals The Mandalorian and Grogu and Moana Fell Short at Box Office
Disney has acknowledged that two of its major film releases this year did not meet box office expectations, but the company emphasizes that the value of these franchises extends well beyond ticket sales.
During Disney’s recent earnings call, CEO Josh D’Amaro discussed the theatrical performance of ‘Star Wars: The Mandalorian and Grogu’ and the live-action remake of ‘Moana’. Although both films did not achieve Disney’s box office targets, D’Amaro noted their contributions to merchandise sales, theme parks, gaming, and streaming.
“Even when our franchise films don’t meet our box office expectations, as with ‘Mandalorian and Grogu’ and the live-action ‘Moana,’ our investments in these core properties fuel other parts of our company,” D’Amaro stated.
According to D’Amaro, ‘The Mandalorian and Grogu’ continued to enhance the Star Wars brand despite its box office results. The film boosted Star Wars merchandise sales, attracted visitors to updated Millennium Falcon attractions at Disneyland and Walt Disney World, and sparked increased interest in gaming.
D’Amaro also highlighted the anticipated streaming success of ‘Moana’. He mentioned that the live-action remake is expected to perform well on Disney+, especially since the original animated film remains one of the most-watched titles on the platform.
Disney also reflected on these results in its earnings report, indicating that the two films exemplify franchise investments that generate value beyond their theatrical releases.
‘The Mandalorian and Grogu’ debuted over Memorial Day weekend, earning $81 million domestically in its opening weekend. While this figure would be considered strong for many films, it was deemed disappointing for a Star Wars release. The film ultimately grossed around $345 million worldwide, significantly lower than previous Star Wars entries like ‘The Rise of Skywalker’ and ‘The Last Jedi’, both of which surpassed the billion-dollar mark globally.
The live-action ‘Moana’ remake also struggled to meet expectations, earning around $262 million globally. With a reported budget nearing $250 million, industry estimates suggested the film could incur a loss of approximately $100 million from its theatrical run.
Disney CFO Hugh Johnston echoed D’Amaro’s sentiment that a film’s success cannot solely be gauged by box office figures. He explained that the company benefits from owning significant franchises that continue to generate revenue across various sectors.
“Theatrical performance is important to us, of course, and we certainly aspire to deliver consistent financial results for our films,” Johnston remarked. He added that the movie business is unpredictable, but Disney’s broader entertainment ecosystem helps mitigate those fluctuations.
“The theatrical window in a lot of ways is just one data point, and the real value of that IP is the cumulative benefit of decades-long storytelling and our ability to take that IP and lay it into the entirety of the Disney flywheel,” Johnston explained.
Despite discussing recent setbacks, D’Amaro also celebrated a significant success for Marvel. He congratulated Sony Pictures and Marvel Studios on the record-breaking performance of ‘Spider-Man: Brand New Day’, stating that the film’s success demonstrates that audiences are still eager for major theatrical experiences.
“Congratulations to Sony, Kevin Feige, and the Marvel Studios team. It’s an unbelievable result, and it’s one more example that audiences will turn out in force for great theatrical experiences,” D’Amaro remarked.
He added that Spider-Man’s ongoing popularity across films, merchandise, theme parks, and streaming illustrates the strength of the franchise and could bode well for Disney’s upcoming ‘Avengers: Doomsday’.
With Disney depending on its most significant franchises to drive various aspects of the business, the company is banking on the notion that long-term value is just as crucial as opening weekend figures.
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