Disney Prepares for another Dominance at the Cinema Box Office
Disney Prepares for another Dominance at the Cinema Box Office
There wasn't much Disney (DIS -1.36%) content consumed at the local cinema over the past weekend. The huge box office player this year didn't release any of the top eight draw films. You've got to go down to the ninth spot, where A Real Pain, produced by Disney's Searchlight Pictures, managed a meager $2.3 million in ticket sales even after expanding to more screens.
This week is expected to be tougher for Disney. Rival studios are releasing Wicked and Gladiator II, two highly anticipated movies that should top this weekend's box office charts.
Disney's stock reached a six-month high last week following its impressive financial results. A fantastic summer for its theatrical releases contributed to its strong quarterly performance.
Has Disney lost its magic? Are we back to last year's worries about Disney not resonating with moviegoers? No and no. Patience pays off, and Disney is expected to end 2024 with four of the year's six highest-grossing films.
Adding pop to the popcorn
Let's not ignore the fact that Disney is lacking a blockbuster in cinemas at the moment. It still has this year's two biggest draw films, Inside Out 2 and Deadpool & Wolverine, which have set records domestically. Inside Out 2 now holds the crown as the highest-grossing animated film of all time and the top PG-rated release. Deadpool & Wolverine broke records for R-rated releases. All the higher lifetime grosses carry PG-13 ratings.
As for A Real Pain's poor performance, independent films don't typically perform well on the silver screen. The successful ones usually gain traction over time through word of mouth and become cult favorites. Disney itself didn't produce the film. It performed well at the Sundance Film Festival earlier this year, and Disney's Searchlight secured the rights to distribute the Jesse Eisenberg-led project.
One final point: Venom: The Last Dance has been the top draw for the past three weekends since its late-October debut. It was only dethroned to second place this past weekend. Sony (SONY -3.08%) is the studio behind the superhero movie, but it's based on a Disney-owned Marvel franchise. In simpler terms, Disney is still earning from this successful fall release.
A tale as old as time
Disney investors aren't worried. The studio took a break during the seasonally slow fall season. It's preparing to release two films that should be major holiday season releases in the coming weeks.
Moana 2 hits theaters next week. The project was initially intended for a Disney+ series, but executives were so impressed with the initial work that they shifted it to a full-length theatrical animation release.
Demand won't be an issue. Disney saw the first trailer for the film receive 200 million views within its first day of availability, a record for a Disney animated film. With Disney working on a live-action Moana for the summer of 2026, you can bet they'll do everything they can to ensure the sequel to the 2016 original is a success.
Next month, it should be Mufasa: The Lion King at the top of the box office charts. Detractors may argue that Disney relies too heavily on its established franchises instead of creating original properties, but all 10 of this year's highest-grossing films are sequels. By the end of this year, only Wicked will be among the 13 biggest releases that isn't a sequel.
Disney knows what it's doing. The media company has the ideal ecosystem to boost its biggest releases. It can promote new releases through its theme parks, as well as its network and streaming products. Disney shares are soaring right now -- and soon, cinemas will be filled with audiences flocking to its highly anticipated holiday releases.
Despite the current lack of a blockbuster in cinemas, Disney's anticipated releases, such as "Inside Out 2" and "Deadpool & Wolverine", are breaking records and expected to boost its overall performance. In the realm of investing, Disney's stock continues to soar, demonstrating faith in the company's strategic decisions and potential successes.
Given the financial success of its sequels, Disney is persisting with its strategy of leveraging established franchises, rather than relying solely on original properties. The company's multifaceted ecosystem, encompassing theme parks, network, and streaming services, provides a powerful platform to promote its major releases and attract audiences to cinemas.