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Disneys Strategic Use of IPs: A Detailed Analysis

February 02, 2025Film2258
Why Does Disney Keep Changing Successful IPs to Loss-making Franchises

Why Does Disney Keep Changing Successful IPs to Loss-making Franchises?

When discussing Disney's Walt Disney studio and their approach to managing IPs like Marvel and Star Wars, it's essential to delve into the financial metrics and strategic decisions that drive their success. This article will explore why some films and TV shows under the Disney banner may not be as profitable as expected, while others continue to thrive.

Star Wars Films: Profitable Hits and Box Office Successes

Let's take a closer look at the numbers for Star Wars films. Contrary to the perception that some of these movies were loss-makers, the data reveal a different picture:

The Force Awakens

Gross: Over $2 billion Impressive Box Office Performance

The Last Jedi

Gross: Over $1 billion Despite mixed reception, this film still significantly contributed to earnings

Rogue One: A Star Wars Story

Gross: Over $1 billion Appeal among fans

Solo: A Star Wars Story

Budget: $275 million Gross: $392 million Personal Enjoyment: The filmmakers' perspective indicates a positive experience

While Solo may have been met with criticism, the box office performance still indicates profitability. On the flip side, The Rise of Skywalker despite a mixed reception, maintained strong box office numbers:

Gross: Over $1 billion

The Case of MCU Films and Show

The Marvel Cinematic Universe (MCU) offers a different perspective. Out of the numerous MCU films, only two did not break even at the box office: The Marvels and Black Widow. However, the latter made up for its box office earnings through streaming revenues, rendering it ultimately profitable.

MCU Box Office Successes

Deadpool
Gross: Over $1 billion Wolverine
Gross: Over $1 billion

Despite this, the MCU continues to generate massive box office numbers and box office success, with only one movie, The Marvels, currently marked as a loss. The remaining films have consistently delivered both financial and critical success.

Streaming and Risk Tolerance

Disney's use of streaming services as a risk sector is another key aspect of their strategy. For instance, the success of The Mandalorian as an original series on Disney led to plans for a standalone Mandalorian movie. This approach allows Disney to experiment with various content, trying new ideas, and gauge audience reception:

Marvel TV Shows on Disney

Marvel's strategy with streaming is similar, but the success of some shows has been mixed:

Diminishing Returns of Hawkeye and Secret Wars

Hawkeye faced a decline in viewership and critical reception, indicating the over-reliance on a single franchise can be risky. Secret Wars also struggled, leading to a need for more strategic staggered releases.

Disney has learned from these missteps, understanding the importance of strategic content scheduling and avoiding market saturation with homogenous content.

Disney Classics and Legacy Films

It's also worth noting that Disney's Classic films are part of its legacy and do not necessarily need to generate additional revenue. Fantasia and Pinocchio initially faced box office failures but have since made money through home video and streaming:

Initial Failure
Fantasia and Pinocchio struggled during their initial releases. Long-Term Success
After the 1980s and the advent of streaming, these films became profitable.

Disney's Revenue Trends

A chart showing Disney's revenue from 2010 to 2024 clearly demonstrates the studio's financial health:

Except for a sharp drop in 2020 due to the pandemic, Disney is currently doing better than ever. This reinforces the assertion that Disney is effectively leveraging its IPs, just in unconventional ways that some may not personally prefer.

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