The cinema results fell below Disney’s expectations
Disney says both films delivered disappointing theatrical revenue despite their established franchises. Live-action Moana currently stands at a $263 million box office gross against a reported production budget of $250 million.
Additional marketing costs leave little room for the film to recover that spending through cinemas. Its reception had already been clouded by questions about the need for a live-action remake of an animated film that remained prominent within Disney’s catalogue.
Star Wars: The Mandalorian and Grogu finished its theatrical run with $345 million against a $165 million budget. That gross was stronger relative to its budget than Moana’s result, but it was still the lowest box office total for a live-action Star Wars film, falling below Solo.
The contrast across Disney’s slate was sharp. The company celebrated Toy Story 5 reaching $1 billion at the box office and said The Devil Wears Prada 2 had performed well, particularly internationally.
Disney is pointing to retail and streaming value
Disney argues that the franchises continued to generate value through merchandise and streaming potential. In its financial results, the company said the investments contributed to value beyond their theatrical releases.
The Mandalorian and Grogu “drove healthy growth in retail sales for the Star Wars franchise during the quarter”, according to Disney. That is the clearest evidence offered for the film supporting another part of the business even as ticket sales disappointed.
For Moana, Disney expects the live-action film to become a strong title on Disney+. The company based that expectation on the streaming performance of the original film and the franchise’s wider presence across three films, an EPCOT themed area, and a global merchandise business.
Disney did not provide a Disney+ release timetable for the live-action film. Its wider effort to increase engagement on the service also includes a Disney and TikTok short-form content-sharing deal, although that initiative is separate from the company’s plans for Moana.
The films leave their franchises in uncertain positions
Disney has not announced a live-action Moana sequel or another appearance for the Mandalorian and Grogu. The company’s earnings comments instead focused on the existing films continuing to support streaming, retail, and broader franchise activity.
The financial case presented to shareholders is wider than box office alone, but the theatrical results remain disappointing by Disney’s own assessment. Merchandise sales and future streaming performance can extend a film’s commercial life; they do not erase the challenge of two major franchise releases falling short in cinemas.
Leave a Reply