Disney's recent issues with activist investor Nelson Peltz may have been facilitated by the company's struggles to reclaim the stratospheric box office records of 2019. The company released seven billion-dollar movies in only four years, helping to bring in over $13.2 billion at the box office worldwide. In that year, the studio entertainment sector brought in $11.1 billion in sales and $2.69 billion in operating profits.In 2022 and 2023, the House of Mouse saw revenues drop below $9 billion. Additionally, the company's content sales business—which houses its home entertainment and box office divisions—had operational losses for six consecutive quarters. Pandemic shutdowns, two worker strikes in Hollywood, and a lack of communication with Disney's theater industry is going through a difficult time due to the audience.
With the exception of 2022's "Avatar: The Way of Water," which Disney purchased for $71 billion in exchange for the majority of 21st Century Fox, the studio has not released a film that has brought in more than $1 billion since the 2019 Star Wars films, according to Comscore statistics. "Spider-Man: No Way Home," which grossed $1.9 billion, was produced and released by Sony, with Disney's Marvel Studios serving as a co-producer. Disney's films, "Guardians of the Galaxy: Vol. 3" in 2023 and "Doctor Strange in the Multiverse of Madness" ($955 million), "Black Panther: Wakanda Forever" ($859 million), and "Thor: Love and Thunder" ($760 million), all came close to breaking the $900 million mark worldwide at the box office.
However, a few of high-profile franchise movies have failed. "Ant-Man and the Wasp: Quantumania" brought in $476 million worldwide, which was a record-breaking amount for a Marvel movie (until "The Marvels" crossed $200 million late last year), while Pixar's "Lightyear" brought in less than $250 million worldwide in 2022. "Indiana Jones and the Dial of Destiny" brought in $378 million worldwide in 2023. As Peltz pursues a position on the board for himself and former Disney CFO Jay Rasulo, the company's recent box office setbacks have provided valuable material for Trian Fund Management. The Disney board has come under fire from Peltz, who claims that the board "lacks focus, alignment and accountability" and has done little to address the company's declining profits, reputation, and stock price. The board will be decided by Disney shareholders.
As Peltz pursues a position on the board for himself and former Disney CFO Jay Rasulo, the company's recent box office setbacks have provided valuable material for Trian Fund Management. The Disney board has come under fire from Peltz, who claims that the board "lacks focus, alignment and accountability" and has done little to address the company's declining profits, reputation, and stock price. At the company's shareholder meeting on Wednesday, Disney stockholders will cast their votes for new board members. The fund included "Wish," "Indiana Jones and the Dial of Destiny," "Lightyear," "The Marvels," and "Haunted Mansion" as instances of recent box office setbacks for the studio in its white paper, which was made public in early March.
"We are worried about Disney's studios and creative processes as they are right now throughout Peltz has openly questioned Disney's so-called "woke" programming approach. The creative staff of the organization has made a concerted effort to develop television programs and motion pictures featuring non-white and non-male characters, as well as to investigate stories that defy heteronormativity.
"People watch a show or a movie to be entertained," Peltz stated in a recent Financial Times interview. "They go not to receive a message."
He specifically criticized Marvel movies that include the African prince-turned-king Black Panther and the female U.S. Air Force pilot Captain Marvel, who acquires tremendous cosmic powers.
"Why must I own an all-female Marvel team? It's not that I'm against women, but why must I do it? Why am I not able to own Marvels who are both? Later in the FT interview, he said, "Why do I need an all-Black cast?"
There was no all-Black cast for the movie "Black Panther," and there was no all-female cast for the films "Captain Marvel" and "The Marvels," which include Captain Marvel as the main character.
Peltz's remarks are consistent with those made earlier by Ike Perlmutter, the former chairman and CEO of Marvel Entertainment. Peltz is friendly with Perlmutter and supports his proxy challenge; Perlmutter was fired from Disney last year.
Peltz has also expressed dissatisfaction with Disney's fragmented streaming strategy and its unsuccessful succession plans.
According to CEO Bob Iger, Disney also overstretched its Marvel brand with an excessive number of Disney+ offshoot series and live sequels.Disney has also had to deal with a fast evolving customer base that requires more than a throwback movie to entice them out of their couches and into theaters, particularly as finances grow tighter.
Iger took back control of the corporation in late 2022, and since then, he has addressed these theatrical issues several times.
At the Morgan Stanley Technology, Media, and Telecom Conference in March of last year, he said that he wanted Marvel to produce less sequels and more original content—or, at the very least, to be more picky about whose sequels it approves. In November, he expressed his opinion once more during He also said at the DealBook Summit in New York that he would no longer put up with his company's partners and creative team putting messaging ahead of narrative.
It will take time for Disney's studios to change, especially after production was hampered by last summer's writer and actor strikes that shut down the company. Box office analysts do, however, anticipate a strong reversal for the business in 2026.
A third Avatar movie is scheduled for release in mid-December 2025, which means that ticket purchases for that year will carry over into 2026. The summer of that year will then begin with an Avengers team-up movie called "The Kang Dynasty," which would be followed during Memorial Day weekend by a "Mandalorian" Star Wars feature. Disney's historic year will conclude with a second Star Wars movie in December 2026.
The history of those franchises indicates that they have the potential to generate enormous box office revenue.
Writing By Ethan Stone
Head Editor & Chief : Kennedy Lucas Patterson
Presented By "Kennedy Lucas & Associates
© 2024 "Kennedy Lucas Patterson" Entertainment
© 2024 Kennedy Lucas & Associates
© 2024 The Vox Times By K.L.P Entertainment
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