Photo Credit: Disney
In the world of cinematic magic, not all spells cast a profitable enchantment. Disney’s animated feature ‘Wish’ serves as a testament to this reality, having conjured up a global box office of nearly $255 million. Despite this seemingly impressive figure, the film is labeled a financial disappointment, with a reported net loss of $131 million.
The film, directed by Chris Buck and Fawn Veerasunthorn, was Hollywood’s fourth-largest financial misstep in 2023, trailing behind other Disney ventures such as ‘The Marvels’, ‘The Flash’, and ‘Indiana Jones and the Dial of Destiny’. The question arises: how does a film with a quarter-billion-dollar gross end up in the red?
The math behind the magic reveals that Disney’s share of the box office revenue was a mere $106 million. Supplementing this were home entertainment revenues of $40 million and TV/streaming revenues of $85 million, totaling $231 million. However, the spell’s cost was steep: a production budget of $200 million, $100 million in prints and advertising, and $62 million in residuals, interest, and overhead, culminating in expenses of $362 million.
Despite the loss, ‘Wish’ fared better than its predecessor ‘Strange World’, which fell $197 million short of breaking even. As Disney looks to the horizon, it adapts its strategy with ‘Moana 2’, the first theatrical feature produced between its Burbank and Vancouver studios. This new international production model aims to curtail costs and perhaps restore the fiscal magic that has long been associated with Disney’s animated endeavors.
The Walt Disney Company’s recent financial report reflects a broader strategic transformation, with significant cost reductions and a target of $7.5 billion in annualized savings by the end of fiscal 2024. With a focus on efficiency and profitability, particularly in its streaming services, Disney remains optimistic about its future earnings and cash flow2. As ‘Moana 2’ sets sail for its November release, the industry watches to see if Disney can navigate the turbulent financial waters and find its way back to the treasure trove of success.
