Disney Downplays 'The Mandalorian' Box Office Disaster Amid Streaming Pivot

Disney CEO Josh D'Amaro downplayed the box office disappointment of 'The Mandalorian and Grogu', citing its impact on retail sales and park attendance. The movie, released in May, is the lowest-grossing film in the Star Wars franchise, failing to reach $200M in U.S. box office sales.

D'Amaro argued that the movie drove growth in retail sales for the Star Wars franchise and attracted guests to the updated Millennium Falcon attraction at Disneyland and Walt Disney World.

Disney is also exploring a free, ad-supported streaming service, which D'Amaro sees as a way to expand its reach to price-sensitive customers. The company has partnered with TikTok to produce short-form content for Disney Plus, and announced plans to launch an ad-supported tier in the future.