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Disney Acknowledges Two Summer Tentpoles Underperformed at Box Office

Executives said the films still delivered value through merchandise, theme-park attendance, gaming engagement plus streaming interest, so the company will continue investing in franchise projects.

Overview

  • On Wednesday, Aug. 5, Disney executives told investors that Star Wars: The Mandalorian and Grogu and the live-action Moana “underperformed” their box-office expectations during the company’s Q3 earnings call.
  • The Mandalorian and Grogu finished its run with roughly $345.2 million worldwide and Moana with about $262–263 million, with industry estimates saying Moana’s reported ~$250 million production budget could translate into an estimated ~$100 million theatrical loss.
  • Disney argued the films created value beyond ticket sales by driving retail growth, boosting visits to Star Wars and Moana park attractions, and increasing engagement with related games and merchandise.
  • Executives pointed to strong audience scores versus critics on Rotten Tomatoes as proof of fan interest, and CFO Hugh Johnston said theatrical receipts are only one data point in a diversified business model.
  • Disney signaled no major change to its strategy and plans to keep building familiar IP across platforms, with projects such as live-action Tangled, Lilo & Stitch 2, Star Wars: Starfighter and Ahsoka season 2 already in the pipeline.