Walt Disney Co (DIS)

[swanlinbar]

DIS > Disney and Pixar Hope To Spark Animation Revival With 'Elemental'
9:19 am ET June 15, 2023 (Benzinga) Print
Walt Disney Company (NYSE:DIS) and subsidiary Pixar are hoping to break out of their recent animation rut with the release of their latest feature, “Elemental.”

The film, a romantic immigrant story told through anthropomorphic elements of nature, comes at a time when Disney is under pressure to prove its animation prowess amidst stiff competition from Universal’s Illumination and DreamWorks.

What Happened: Disney’s Pixar studio is looking to rebound from the box-office disappointment of “Lightyear,” which garnered just $226.7 million at the global box office in 2022, a fraction of what past Pixar films have generated.

“Elemental,” Pixar’s 27th feature film, is expected to debut between $35 million and $45 million domestically, according to industry analysts, CNBC reports. This is in the midrange for a typical Pixar release but well shy of the $120.5 million that Sony’s animated “Spider-Man: Across the Spider-Verse” picked up during its opening weekend earlier this month.

Why It Matters: Disney’s recent struggles with animation have been notable, with the company facing significant competition from other studios.

Universal’s Illumination and DreamWorks have been particularly successful, with hits like “The Super Mario Bros. Movie,” “Puss in Boots: The Last Wish,” and “Minions: The Rise of Gru” dominating the box office. This has put pressure on Disney to deliver with its upcoming releases.

The underperformance of “Lightyear” at the box office was a significant blow for Disney. The film, which was released a year ago, had a reported budget of $200 million and garnered a modest worldwide box office revenue of $226.7 million. The film’s underperformance was partly attributed to its inability to be screened in 14 Middle Eastern and Asian countries due to its depiction of a same-sex relationship, as reported by Benzinga.

Disney’s strategy during the pandemic of streaming-only distribution for several of their well-reviewed films, including “Soul,” “Luca,” and “Turning Red,” has also been cited as a factor in the company’s recent animation struggles. When “Lightyear” went to theaters, consumers were used to Pixar films going straight to streaming, leading to confusion and lackluster ticket sales.

Disney is hoping that “Elemental” will mark the start of a new era of animated success for its studios. With more family films in theaters after a drought in the slate, the company will have an easier time marketing its upcoming features to theatrical audiences.

The company is set to release the Disney Animation film “Wish” in cinemas over Thanksgiving and has two more Pixar films slated for 2024 — “Elio” and a sequel to “Inside Out.”