The year 2023 is not a favorable time for the film industry, especially for Disney, which has faced significant challenges. Even Disney, the leading name in global cinema, is experiencing a “hardship” phase where films are struggling at the box office, impacting not just film releases but even their theme park business.
To clarify, Disney remains the dominant and most active player in the film industry despite several underperforming films and releases that have not met expectations. However, looking at the trajectory and the ongoing struggles of individual franchises, it is clear that the studio is facing a “decline” as it increasingly tries to diversify and reach a broader audience, resulting in more failures. Notably, this comes as the company approaches its 100th anniversary!
Over 21,000 layoffs… in one summer
Since the beginning of the year, Disney has launched several animated and live-action projects, including significant expansions within the Marvel Cinematic Universe. However, unlike previous years, Disney’s 2023 has been marked by continuous losses, despite major projects having budgets starting from $200-300 million.
Starting with the two flop projects, Lightyear and Strange World at the end of 2022, Disney has released over 10 films that have underperformed at the box office. Ant-Man and the Wasp: Quantumania, The Little Mermaid, Elemental, Indiana Jones 6, Haunted Mansion, The Marvels, and most recently, Wish have all faced disappointing returns, further aggravating the company’s financial woes. Notably, this is also a year where Disney has not had a film achieve a gross revenue of $1 billion. The only film considered a success was Guardians of the Galaxy Vol. 3, which grossed $845 million worldwide, but even that is not enough to offset the losses nearing $900 million this summer (according to Daily Mail).
Wish had the lowest opening weekend in Disney history with just over $80 million globally in its opening week
The Marvels recorded the lowest opening weekend in the MCU since 2008
The situation in the film industry has been dire, leading to a significant decline in Disney+ subscribers as well. According to Forbes, Disney+ has lost up to 11.7 million subscribers, a staggering number following the second quarter of this year, due in part to a continuous release of low-quality products, not just in Hollywood but globally. Projects like Loki and the Korean film Moving have not been enough to “retain” viewers. Additionally, the company’s decision to raise subscription prices has had minimal impact on audience sentiment.
Loki received praise but has not fulfilled its potential
Meanwhile, smaller studios like Searchlight and 20th Century Studios are also struggling, with projects like The Creator and The Boogeyman failing to make a mark. Conversely, box office trends have also dropped to their lowest levels since 2014, with audience attendance declining significantly compared to previous years, leading to a troubling stagnation.
Disney’s CEO: I am determined and do not intend to give up
According to reports from The Wrap, current Disney CEO Bob Iger is under immense pressure due to the company’s ongoing failures. He expressed feeling “exhausted and determined” as the company struggles to maintain its initial investment levels. Additionally, the departure of content chief Latondra Newton in June has been perceived as a significant setback for Disney’s future direction.
Bob Iger regrets returning as CEO of Disney after previously announcing “never go back”
Recently, Disney had to implement significant layoffs, totaling up to 7,000 employees, alongside a budget cut of $5.5 billion. This situation reveals that even the “flagship” of the global film industry is facing a serious crisis, leading to substantial deterioration and significant financial distress.
However, Bob Iger remains hopeful that Disney’s situation will improve in 2024. The company is making efforts to “recover” from significant losses, as well as heavily promoting upcoming major films such as Deadpool 3, Inside Out 2, and even Frozen. Nevertheless, the challenges ahead are still daunting, and the future of Disney remains uncertain as audience engagement continues to wane. Fans are also losing hope with Marvel and the live-action projects generating fierce debates (for example, Frozen was originally conceived as The Snow Queen).
Given the current situation of Frozen, Disney is not certain it can “reverse the tide”
With the impending challenges ahead, will Disney be able to navigate through this turbulent period, or will it continue to face setbacks as it tries to reestablish itself in the competitive landscape?
