Disney Chief Fails on Mandalorian and Moana

The Art of the Portfolio: How Disney is Turning Box Office Quirks into Empire-Building Assets

In a world obsessed with blockbuster results, recent theatrical performance figures for major Disney properties have sparked some candid conversation within the company. Speaking at the latest earnings call, CEO Josh D’Amaro acknowledged that films like The Mandalorian and Grogu and the live-action remake of Moana did not meet expectations at the box office this summer.

The numbers tell a nuanced story. While The Mandalorian and Grogu opened to $81 million domestically, which was the lowest mark for a major Star Wars release, it still amassed a healthy $345 million globally. Meanwhile, the live-action Moana, despite a reported production cost of $250 million, earned $262 million worldwide—a figure that some analysts suggested could mean a potential loss for Disney in theatrical revenue.

Yet, D’Amaro quickly pivoted the narrative, framing these outcomes not as failures but as successful investments. He emphasized that the true value of these core properties lies far beyond the cinema screen. “Even when our franchise films don’t meet our box office expectations,” he stated, “our investments in these core properties fuel other parts of our company.”

The financial magic is found in ancillary revenue streams. The Star Wars content, for instance, drove significant growth in retail sales and drew enthusiastic crowds to theme park attractions like the updated Millennium Falcon ride at Disneyland and Walt Disney World. Furthermore, these properties generated substantial engagement in gaming and merchandise.

This strategy of viewing film as a catalyst rather than the endpoint was echoed by CFO Hugh Johnston. He pointed out that the nature of the film industry demands a broader perspective. “The theatrical window is just one data point,” Johnston explained, “and the real value of that intellectual property is the cumulative benefit of decades-long storytelling and our ability to take that IP and lay it into the entirety of the Disney flywheel.”

It is a testament to a long-term vision. By leveraging accumulated narrative history, Disney transforms its cinematic universe into an interconnected ecosystem generating value across multiple platforms.

This focus on maximizing engagement extends into the digital realm. In a move designed to harness the power of fandom and creator culture, the Walt Disney Company and TikTok have announced a landmark global partnership. This collaboration will bring curated, fan-created content directly from TikTok onto the Disney+ app.

Participating creators will gain access to assets across Disney’s vast library of beloved IP—from Star Wars and Pixar to classic animated series—allowing short-form videos featuring these characters and stories to live simultaneously on both TikTok and Disney+. This strategic integration signals a future where enduring franchises are not just consumed, but actively co-created by their most devoted fans.