The Walt Disney Company is staring at an almost $900 million loss after a string of box office disappointments, which some attribute to the perceived progressive narratives within its latest releases.
Valliant Renegade, a platform analyzing the business and financial aspects of the film industry, reports that the last eight films from Disney have underperformed. The latest Guardians of the Galaxy installment and the live-action remake of The Little Mermaid fell short of projected performance, while films like Strange World and Lightyear barely made a mark at the box office.
Changes are also evident in Disney’s archives, with the introduction of contemporary, progressive narratives and removing what some consider outdated or offensive imagery from classic films and rides. Some conservative critics argue that these alterations have affected Disney’s appeal.
Valliant Renegade highlights that “Disney maintains the exclusive rights to its content post-theatrical release and no longer licenses its content, including the Marvel Cinematic Universe, to third-party platforms such as Netflix and Amazon. This approach has led to a loss of potential billions in licensing revenue.”
As a result, despite typically commanding lofty budgets and production values, the entertainment titan is struggling to see a return on its film investments. Its decision to feature content exclusively on its Disney+ platform rather than pursuing licensing agreements with established streaming services is seen as a financial misstep.
Despite these setbacks, Disney’s other profitable ventures, including theme parks & resorts and ESPN sports, are helping to sustain the company.
Despite its shaky start, The Little Mermaid is inching closer to the $500 million worldwide box office mark, boasting a domestic box office total of $270.2 million and foreign earnings of $229.1 million. However, despite a 94 percent audience score, the film’s controversial casting and a lukewarm 67 percent ‘Fresh’ rating on Rotten Tomatoes indicates that it may not hit the mark for all viewers.
Similarly, the film Lightyear, with a production budget of $200 million, managed only $226.7 million in global ticket sales and mixed reviews, a stark contrast to the overwhelming success of 2018’s The Incredibles 2.
Under CEO Bob Iger’s leadership, Disney’s perceived shift towards a more progressive stance has prompted changes such as inclusive greetings for park visitors and content warnings on older films with potentially insensitive content. This shift is also evident in Disney’s recent inclusion of an openly gay character in Lightyear and the casting of a Latina actress for the title role in the upcoming Snow White adaptation.
Simultaneously, Disney’s restructuring plan, aiming to cut $5.5 billion in costs, has led to layoffs and a merging of its film and television groups. This plan, and Disney’s contentious stance on a recent Florida legislation, have resulted in a tense standoff with Florida Governor Ron DeSantis. DeSantis, opposing what he sees as Disney’s inappropriate content, has assumed control of Disney World’s governing district, leading to legal battles and political maneuvers that continue to unfold.
Speculations suggest that the company’s shift towards a more progressive image under former CEO Bob Chapek, and the subsequent financial losses, may have contributed to his removal in November 2022. Under his tenure, Disney+ domestic subscriber growth stalled, and both public approval and stock prices took a hit.
As these struggles continue, it remains to be seen how this new approach to content and storytelling will impact the future of one of the world’s most iconic entertainment companies.
As the Walt Disney Company navigates a changing cultural landscape, it must balance its creative ambitions and corporate realities. Its attempts at inclusivity and representation have been met with both applause and criticism, making for uncertain box office returns. These hurdles and significant financial challenges, internal restructuring, and external legal conflicts signal a crucial crossroad for the company. As the Disney saga unfolds, audiences worldwide wonder what the next chapter holds for this beloved entertainment icon.
