The Walt Disney Companyhas the most prized content in the world. No other entertainment and media company has Buzz Lightyear, Donald Duck, Indiana Jones, Luke Skywalker, and Mickey Mouse, to name just a few iconic Disney-owned characters. Moreover, Disney has Marvel and theStar Warsuniverse. It doesn’t get better than this.
2023 marked the 100-year anniversary of the founding of the Walt Disney Company. It was supposed to be a year of celebration with many high-profile projects that would set the box office on fire. Yet many of their films have been disappointments (Ant-Man and the Wasp: Quantumania,Indiana Jones and the Dial of Destiny), while others have been outright flops (Haunted Mansion,The Marvels). OnlyGuardians of the Galaxy Vol. 3andElementalcan be seen as hits for the studio.
Disney is facing the worst year they have had in many years. It feels like their box office domination of 2019 is so far away, and the cracks are starting to form in the company. The COVID-19 pandemic greatly impacted Disney, and it is still recovering from it. Here is how Disney has become a failing brand and what the future holds for it.
Update August 21, 2025: This article has been updated following a string of Disney’s recent box office disappointments and changes made within the studio.
Disney: More Equals Less
Disney CEO Robert Igerrecently announced a planned reduction in both content spending and creation at Disney, specifically regarding the Marvel andStar Warsfranchises, which Iger believes have been lessened by a surge of Marvel andStar Warstelevision shows in recent years.
In 2009, Disney acquired Marvel Entertainment for approximately $4 million, and while the Marvel brand has grossed billions of dollars for Disney in the ensuing years, beginning with the blockbuster success of 2012’sThe Avengers, the sizable grosses of the Marvel films have been offset by mammoth marketing and production costs, as indeed Disney’s overall film business is on pace to post a loss of over $900 million for 2023.
However, Disney doesn’t control the most valuable Marvel superhero character, Spider-Man, as while Disney has a co-production and licensing agreement for the appearance of Spider-Man in Disney films, beginning with 2016’sCaptain America: Civil War, the ultimate distribution, financing, ownership, and the creative direction, of theSpider-Manmovies is controlled by Sony Pictures.
Related:10 Best Disney Movies That Grossed $1 Billion at the Box Office, Ranked
In 2012, Disney bought Lucasfilm for approximately $4 billion, and while Disney has certainly recouped this investment with various film and streaming projects, beginning with the blockbuster success of 2015’sStar Wars: Episode VII – The Force Awakens, subsequentStar Warsfilms, especially 2018’sSolo: A Star Wars Story, encountered dwindling box office and enthusiasm.
Moreover, as there hasn’t been aStar Warsfilm since 2019, with the reviledStar Wars: Episode IX – The Rise of Skywalker, and as the brand has been subsequently entirely focused on acclaimed Disney+ shows likeAndor,The Mandalorian, andObi-Wan Kenobi, theStar Warsbrand, to Iger’s overarching point, has now become so identified with the streaming universe that it might be difficult for Disney to pivot audiences toward futureStar Warsfilm projects, which will struggle to compete with their streaming counterparts.
COVID-19 Impact
COVID-19 greatly impacted Disney, more so than any other studio. The streaming service launched just four months before the pandemic, which meant it needed more programming at a time when people were stuck at home and needed new material to watch. Disney moved up the release ofFrozen 2on the streaming service and releasedOnwardshortly after its theatrical release window was cut short. Films likeArtemis FowlandThe One and Only Ivanwere sent straight to Disney+, and soon so were high-profile films likeCruella, Black Widow,andMulanon Disney+ for an added $30.
The same thing happened with Marvel. The MCU expanded with various Disney+ series, which overwhelmed audiences and made so much material fans felt like they could not keep up. That, combined with films arriving on Disney+ so quickly after release, meant audiences did not need to rush out to theaters as quickly to see these films. It is cheaper for a family of four to watch a movie at home on Disney+ than a night out at the theater. While Disney+ was originally seen as the company’s future, it has nowbecome a major hindrance at the box office.
Disney Has Become a Lightning Rod of Controversies
Intentionally or not, Disney can’t seem to stop courting controversy. Most recently, Disney became the target of outrage after it was revealed that Disney’s upcoming live-action remake of the beloved 1937 animated fantasy filmSnow White and the Seven Dwarfs, titledSnow White, will be replacing the beloved seven dwarfs from the 1937 film with non-dwarf, taller “magical creatures” characters, for the purpose of not misrepresenting dwarfism and promoting inclusivity.
Also, it was recently revealed that the conservative-orientedaction filmSound of Freedom, which was completed in 2018 and has become the sleeper hit of 2023, having surpassed the $100 million mark at the domestic box office, was shelved by Disney after Disney’s acquisition of the film’s original distributor, Disney subsidiary 20th Century Studios, was finalized in 2019. Accordingly, many of the film’s supporters have ascribed political motives to Disney’s decision, which almost certainly had the effect of boosting the film’s box office gross. Whether this is true or not,Sound of Freedomhas become the latest rallying symbol in the growing backlash against Disney’s continually polarizing creative and management decisions.
Disney has become the target of conservative backlash following many legal battles in Florida, mainly against Governor Ron DeSantis and his “Don’t Say Gay” Bill, which bars discussion of sexuality and gender in public schools. Disney, which operates Disney World and one of Flordia’s biggest tourist attractions, was quiet on the controversial bill at first, but various individuals in Disney called out then-CEO Bob Chapek.
Once Disney did take a stand against the issue, DeSantis fought back and turned Disney as the avatar of a culture war fight he was wagging. This has led many on the right to accuse Disney of “going woke” and pushing political agendas in their films. Whilethey may want to claim ownership of Disney’s reduced box office, they only make up a small percentage. It does show, though, that Disney is at an interesting crossroads in terms of its future.
No Magic Wand To Fix This Problem
Disney CEO Bob Iger’srecent announcement that he was open to the possibility of selling some of Disney’s streaming and television assets suggests an acknowledgment on Iger’s part that the entertainment and media conglomerate has become too big and overextended for its own good and needs to be seriously streamlined to be profitable, especially in terms of Disney’s streaming business, which had a $4 billion loss for the 2022 fiscal year.
Related:Pixar: How the Animation Studio Has Changed Over Time
While a reduction in spending seems like the most obvious solution to Disney’s problems, as Disney’s blockbuster status has become so inextricably tied to the company’s identity, how will this affect Disney+, which seems to be absolutely dependent on a continual influx of blockbuster-level content for its very survival?
YetDisney is now acquiring full ownership of Hulu, which will mean more money spent. Disney could be going for a bigger play, with a few years of financial hardship for long-term gain. While some audiences might want to boycott Disney, can they resist not having access to Hulu and various shows that are not part of Disney’s image but still are made by the company, likeFamily Guy,It’s Always Sunny in Philadelphia,The Kardashians, and TheBear?
Disney’s Future
Following the box office disappointment ofWish, Disney is ending its 100-year anniversary on a bitter note. The WGA and SAG-AFTRA strikes have had significant impacts on their 2024 schedule. Not counting their 20th Century Pictures releases likeKingdom of the Planet of the Apes, the first official Disney movie in 2024 is currentlyInside Out 2in June of that year. That is six months without a major Disney-branded film.Various MCU films were delayed to 2025leavingDeadpool 3as the sole Marvel Studios film of 2024, the first time sinceThe Avengersback in 2012 that only one MCU film was released in a year.
While Disney is refocusing its efforts astwo sequels toFrozenare in the works, as is a sequel toZooptopiaandToy Story 5, the studio is also now looking to reduce its output. Possibly focusing on the core brands will help breathe new life into the studio. They also should not forget to innovate with new ideas, new concepts, and new voices. Disney cannot rely on the same old stories forever.
