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Disney's film division faced a less-than-stellar summer at the box office this year. Both "The Mandalorian and Grogu," a "Star Wars" film transitioning from the small screen to cinemas, and the live-action remake of the animated "Moana," significantly underperformed expectations. The latter, produced for $250 million, has only grossed $260 million worldwide to date. The former, with a $165 million production budget, has earned $345 million globally. While seemingly adequate at first glance, "The Mandalorian and Grogu" still ranks as the lowest-grossing live-action "Star Wars" film in the franchise's box office history.
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Josh D’Amaro (pictured above), Chairman of Disney Parks, Experiences and Products, recently acknowledged during the company's earnings call that the box office numbers for these two films were indeed disappointing. However, he emphasized that both films still drove revenue growth in other areas of Disney's business. He noted that "The Mandalorian and Grogu" spurred healthy growth in "Star Wars" retail sales, attracted visitors to Disneyland and Walt Disney World to experience the upgraded Millennium Falcon: Smugglers Run attraction, and significantly boosted player engagement in the gaming sector. The live-action "Moana," he added, is poised for strong viewership on Disney+ later, building on the success of the original animated film — which is one of the most-streamed movies in the platform's history.
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Disney CFO Hugh Johnston (pictured above) also commented, stating that while theatrical box office is certainly important and the company aims for consistent financial performance from its films, the nature of the film industry makes it more of a portfolio game. The good news, he continued, is that Disney's diversified businesses help it navigate the volatility of the film industry. In many ways, he concluded, theatrical box office is just one data point, and the true value of these IPs lies in the cumulative effect of decades of storytelling and the ability to integrate these IPs across Disney's entire commercial ecosystem.