Disney Downplays Box Office Flops: The Mandalorian, Moana Drive Growth Elsewhere

Disney's latest earnings call highlighted the mixed performance of two high-profile releases: The Mandalorian and Grogu, and Moana. Both films underperformed at the box office, grossing $345 million and $262 million worldwide, respectively.

While these numbers might be impressive for smaller studios, they pale in comparison to the previous installments of their respective franchises, which have made over $1 billion. Disney CEO Josh D'Amaro acknowledged that these films didn't meet box office expectations but emphasized that other parts of the company benefited from them.

According to D'Amaro, The Mandalorian and Grogu drove growth in retail sales for the Star Wars franchise, drew guests to Disneyland and Walt Disney World's updated Millennium Falcon attraction, and led to significant engagement in gaming. Similarly, Moana is expected to be a strong title on Disney+, building on the success of its original film.

Disney CFO Hugh Johnston further explained that the company's diversified business helps cover the volatility of the film industry. He stated that the theatrical window is just one data point, and the real value of an IP lies in its cumulative benefit over decades-long storytelling and its ability to be integrated into other parts of the Disney flywheel.