As Disney executives tout blockbuster Toy Story 5, they’re also pressing the case that franchise films are key to other parts of the company even if they fall short at the box office like Moana and The Mandalorian and Grogu.
“Even when our franchise films don’t meet our box office expectations, as with The Mandalorian and Grogu and the live action Moana, our investments in these core properties fuel other parts of our company,” CEO Josh D’Amaro said in a letter to shareholders with Disney’s quarterly earnings.
The Mandalorian and Grogu “drove healthy growth in retail sales for the Star Wars franchise, drew guests to the updated Millennium Falcon attraction at Disneyland and Walt Disney World, and led to significant engagement in gaming as well, said the new chief executive.
“Moana is expected to be a strong title on Disney+, building on the success of the original film, which is one of the most streamed movies of all time,” he added.
“Look, theatrical performances is important to us. of course, and we certainly aspire to deliver consistent financial results for our films. But the nature of the film industry is such that it is more of a portfolio game,” said CFO Hugh Johnston on a call after the June quarter numbers.
“The good news for us is our diversified business helps us basically cover the volatility that comes out of the film business. The results today, I think, in a lot of ways, illustrate that the growth drivers for the company right now are Experiences and Streaming, right? Underpinning those growth drivers are clearly the IP. But 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 play it into the entirety of the Disney flywheel.”
More to come
