After ‘Star Wars’ and Live-Action ‘Moana’ Disappoint, Disney Addresses Future of Recycled IP
Disney isn’t ignoring the box office struggles of its latest Star Wars movie and the live-action Moana. Instead, the company is offering a very different explanation for why those releases still matter.
After weeks of discussion among fans and industry observers, Disney finally addressed both films during its latest earnings presentation. While the company admitted the films didn’t perform as expected in theaters, it also made it clear that ticket sales are only one part of the equation. Disney believes these franchises continue generating value in other areas of its business, and that philosophy appears to be shaping its plans moving forward.
Disney Concedes Both Movies Missed Expectations
During its August 5 earnings call, Disney acknowledged that Star Wars: The Mandalorian and Grogu and the live-action Moana both “underperformed our box office expectations.”
The statement marked one of the company’s clearest acknowledgments that the two releases failed to reach their theatrical goals.
Star Wars: The Mandalorian and Grogu earned about $345.2 million worldwide during their theatrical run. Although many films would welcome that total, it fell well short of what was needed to cover its reported $165 million production budget once marketing expenses and theater revenue splits are factored in. Industry estimates placed its theatrical break-even point between $500 million and $600 million, making it the lowest-grossing live-action Star Wars movie released in theaters.
The live-action Moana also struggled to deliver the blockbuster numbers Disney expected. The remake debuted in July 2026 and has earned roughly $263 million worldwide. With a reported production budget of around $250 million, the film opened below expectations and never gained the momentum Disney typically enjoys with one of its live-action remakes.
Ordinarily, results like these could lead a studio to rethink its approach. Disney’s comments, however, pointed in another direction.
Disney Believes the Story Doesn’t End at the Box Office
While Disney admitted the theatrical results disappointed the company, executives also emphasized that audiences responded much more positively than critics.
According to Disney, Star Wars: The Mandalorian and Grogu hold an 86% audience score on Rotten Tomatoes compared with a 60% critics’ score. The live-action Moana shows a similar split, earning an 88% audience score despite a 31% critics’ score.
Disney used those audience reactions to support its argument that these franchises continue connecting with viewers even when ticket sales fall below expectations.
The company also emphasized that theatrical revenue represents only one source of value. Disney continues to measure the success of its biggest properties through streaming, merchandise, consumer products, and theme park experiences,s alongside box office performance.
That perspective explains why Disney isn’t viewing these releases as signs that fans have stopped caring about either franchise.
Popular Franchises Continue Delivering Value
Disney highlighted several successes while discussing the quarter.
Executives praised the company’s creative performance, pointing to Toy Story 5, which has already earned more than $1 billion worldwide.
Disney also stressed that Star Wars and Moana remain important brands across the company.
During the quarter, Star Wars: The Mandalorian and Grogu helped fuel healthy retail sales growth for the franchise. Disney also continues benefiting from major theme park experiences tied to both properties, including Star Wars: Galaxy’s Edge at Disneyland and Disney California Adventure, as well as Journey of Water, Inspired by Moana at EPCOT.
Executives also expressed confidence that the live-action Moana will become a strong performer once it begins streaming on Disney+.
Taken together, Disney’s message suggested that a disappointing theatrical run doesn’t necessarily diminish the long-term value of one of its biggest intellectual properties.
Familiar Franchises Will Remain a Priority
Disney’s broader strategy appears unchanged.
Rather than treating these box office disappointments as reasons to scale back, the company continues investing heavily in recognizable franchises that can generate revenue across multiple parts of the business.
That approach includes theatrical releases, Disney+, merchandise, licensing opportunities, and attractions inside Disney’s parks.
As long as those brands continue producing value beyond movie theaters, Disney appears comfortable continuing to develop sequels, spin-offs, remakes, and other franchise projects.
More Disney Projects Are Already on the Way
Disney’s upcoming lineup reflects that continued commitment to established properties.
The studio is still developing a live-action Tangled alongside Lilo & Stitch 2. Meanwhile, the Star Wars franchise continues expanding with Star Wars: Starfighter and Season 2 of Ahsoka.
Those projects reinforce Disney’s belief that its biggest brands remain central to the company’s future.
Disney Doubles Down on Its Biggest Franchises
Disney openly admitted that Star Wars: The Mandalorian and Grogu and the live-action Moana failed to meet its own box office expectations. Even so, the company believes those franchises continue succeeding in other parts of its business.
Strong audience scores, retail sales, Disney Parks attractions, streaming potential, and billion-dollar successes like Toy Story 5 all support Disney’s long-term investment in familiar intellectual property. Based on the company’s latest comments, fans shouldn’t expect Disney to move away from live-action remakes or major franchise expansions anytime soon.
