Disney CEO Admits The Mandalorian and Grogu and Moana Missed Box Office Expectations, But There’s a Twist
Disney is admitting that two of its biggest movie releases this year did not perform as well as expected at the box office, but the company says the value of those franchises goes far beyond ticket sales.
During Disney’s latest earnings call, CEO Josh D’Amaro addressed the theatrical results of Star Wars: The Mandalorian and Grogu and the live-action remake of Moana. While both films fell short of Disney’s box office goals, D’Amaro explained that they still helped the company through merchandise, theme parks, gaming, and streaming.
“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,” D’Amaro said.
According to the Disney CEO, The Mandalorian and Grogu continued to create value for the Star Wars brand despite its theatrical performance. The movie helped increase Star Wars merchandise sales, brought visitors to updated Millennium Falcon attractions at Disneyland and Walt Disney World, and generated more interest in gaming.
D’Amaro also pointed to the future streaming impact of Moana. He said the live-action remake is expected to perform strongly on Disney+, especially because the original animated movie remains one of the most-watched films on the platform.
Disney also reflected on these results in its earnings report, saying that the two films were examples of franchise investments that created value beyond their theatrical releases.
The Mandalorian and Grogu opened during Memorial Day weekend and earned $81 million domestically in its first weekend. While that number would be considered strong for many films, it was viewed as disappointing for a Star Wars release. The movie eventually earned around $345 million worldwide, much lower than previous Star Wars films such as The Rise of Skywalker and The Last Jedi, which both crossed the billion-dollar mark globally.
The live-action Moana remake also struggled to reach expectations. The film, starring Dwayne Johnson returning as Maui, has earned around $262 million worldwide. With a reported budget close to $250 million, industry reports suggested the movie could lose around $100 million from its theatrical run.
Disney CFO Hugh Johnston agreed with D’Amaro’s view that movie success cannot only be measured by box office numbers. He explained that the company benefits from owning major franchises that can continue generating revenue across different areas.
“Theatrical performance is important to us, of course, and we certainly aspire to deliver consistent financial results for our films,” Johnston said. He added that the movie business is unpredictable, but Disney’s larger entertainment ecosystem helps balance those ups and downs.
“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 lay it into the entirety of the Disney flywheel,” Johnston explained.
Despite discussing recent disappointments, D’Amaro also highlighted a major success for Marvel. He congratulated Sony Pictures and Marvel Studios on the record-breaking performance of Spider-Man: Brand New Day, saying the film’s success shows audiences are still willing to return for major theatrical experiences.
“Congratulations to Sony, Kevin Feige, and the Marvel Studios team. It’s an unbelievable result, and it’s one more example that audiences will turn out in force for great theatrical experiences,” D’Amaro said.
He added that Spider-Man’s continued popularity across movies, merchandise, theme parks, and streaming shows the strength of the franchise and could be a positive sign for Disney’s upcoming Avengers: Doomsday.
With Disney relying on its biggest franchises to drive multiple parts of the business, the company is betting that long-term value matters just as much as opening weekend numbers.
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