Disney’s Struggles with Original Animation

Pixar Animation Studio recently marked a troubling milestone, recording its worst opening weekend ever with “Elio,” which garnered a mere $21 million. This stark figure underscores a broader trend affecting not just Pixar but the entire animation industry, raising questions about the viability of original storytelling in an increasingly franchise-driven market.

The Shift in Box Office Dynamics

The challenges faced by “Elio” mirror a concerning pattern seen with other recent Pixar releases, such as “Elemental,” which previously recorded the studio’s lowest opening of $29.6 million. In contrast, sequels like “Inside Out 2” have thrived, opening at a staggering $154.2 million. According to Comscore data, audience preferences have gravitated sharply toward familiar IPs rather than new narratives.

Disney’s challenges aren’t isolated to Pixar. Its other animation division, Walt Disney Animation, along with competitors from Universal and Paramount, have similarly seen original projects falter in favor of sequels. Analyst Doug Creutz of TD Cowen noted that the disparity between the box office performance of original films versus sequels has markedly widened since the pandemic, complicating the task for studios seeking to diversify their intellectual property (IP) portfolios.

The Rise of Sequels

Disney’s historic dominance in animation began with the release of “Snow White and the Seven Dwarfs” in 1937. However, after Disney’s acquisition of Pixar in 2006, the tides turned in favor of original content like “Frozen” and “Inside Out.” Yet, as pandemic-related restrictions impacted in-theater attendance, Disney pivoted to direct-to-streaming releases for titles such as “Soul” and “Turning Red,” which many blamed for the diminishing box office appeal of non-franchise films.

With increased competition from studios like Sony and Warner Bros., families faced a deluge of choices across both theaters and streaming platforms. Consequently, parents became more discerning about what films warranted a trip to the cinema. “Elio,” arriving amidst the release of live-action adaptations like “Lilo & Stitch,” faced stiff competition at a time when audiences flocked to familiar franchises.

The industry has increasingly turned to sequels as a strategy for revenue amid these shifting dynamics. Peter Csathy, chairman of Creative Media, describes sequels as “comfort food” for audiences, emphasizing their predictable nature. In fact, since 2016, original titles rarely break into the top ranks of box office receipts, making it clear that studios are leaning into existing successes as a safer investment in an uncertain market.

While the outlook may seem grim for original content, there remains potential for films like “Elio” to gain traction post-release. Historical precedents, such as “Encanto,” illustrate that original works can find new life through streaming platforms long after their theatrical runs. This belated recognition can lead to renewed interest in franchises and merchandise opportunities that extend their marketability.