Has 2024 Signaled The End Of Disney Pushing Blockbuster Animated Movies Onto Disney+?

Disney animated films have long been cornerstones of theatrical entertainment. So it should come as no surprise that they had two box office juggernauts this year with the highest-grossing animated movie of all time, Inside Out 2, and another milestone-setting movie, Moana 2. However, it was only a few years ago that a seismic shift occurred in Disney's release model. As the COVID-19 pandemic hit, Disney had just entered the streaming wars with Disney +. What resulted was Disney deciding to release major animated films directly to their newly minted streaming service, skipping a theatrical release altogether.

While this strategy initially made sense during the pandemic, it stuck around long after theaters reopened, favoring shorter release windows and day-and-date models. That could all change with the success of Inside Out 2 and Moana 2. These hotly anticipated sequels have thus far brought in over two billion dollars collectively, demonstrating that audiences are still craving the cinematic experience. Inside Out 2 alone can change the game for Disney. There's not only reignited excitement around their animated offerings, but it's also sending a clear signal: the era of skipping theatrical releases for major animated projects needs to end.

Disney's Decision To Put Animated Movies On Disney+ Instead Of In Theaters Caused Backlash

Disney's Streaming Strategy Sparked Controversy From Fans, Creators, And The Industry

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When it was announced in 2020 that Disney Pixar’s highly anticipated new feature, Soul, was skipping theaters and going straight to Disney +, for many it sparked disappointment and anger. For decades, Disney and Pixar had been a gold standard many relied on. Fans looked forward to a magical communal experience, exhibitors were able to get audiences to theaters, and the people who made the movies could see their hard work played out on the biggest screens in town. However, Disney instead doubled down on their new streaming strategy, following Soul up with Raya and The Last Dragon, Luca, and Turning Red.

Related Disney Has Two Best Animated Movie Oscar Contenders This Year & It Needs One To Win To Avoid Making History Disney and their storied animation arm has the chance to remind audiences and critics alike why it has dominated this space for decades.

When these films were given very short specialized theatrical releases, or altogether thrown onto Disney +, many felt the magic was lost. Exhibitors took a massive hit, creatives felt demoralized, and fans lost out on that Disney magic. The streaming-first strategy reduced the film's cultural impact, transforming films that could have been cinematic events into mere digital releases. The potential financial losses may have also percolated throughout other Disney verticals, as animated movies historically generate not just ticket sales but also merchandise and home media demand. For Disney, it was a clear case of leaving money (and magic) on the table.

Disney's Streaming Shift Started During The Covid-19 Pandemic (But Continued Too Long)

Disney's Pandemic-Era Strategy Overstayed Its Welcome And Cost Them Big Time

When the COVID-19 pandemic hit in 2020, studios were in a scramble. Filming came to an abrupt halt, theaters shuttered their popcorn machines, and release dates had to be pushed out indefinitely. Luckily, most studios had recently (or were about to) launch their respective streaming services. In a way, they had a get-out-of-jail-free card; a means to release their films straight to the public in the safety of their own homes. Disney’s decision to release Soul was a practical necessity. For families confined to their homes, these streaming releases were a welcome reprieve, and Disney+ subscriptions soared.

The box office earnings of Inside Out 2 and Moana 2 far surpassed what they could have achieved through streaming alone.

However, when COVID-19 eased and the world began to open up, studios weren’t eager to run back to theaters. They had subscriber numbers to keep them happy, after all. Instead, most opted for hybrid models. Depending on the movie, they could put it in theaters for a short window before punting it to streaming, they could release it day-and-date (the film is released in theaters and streaming on the same day), or they could throw it straight onto streaming. Disney opted for this strategy, but it didn’t always pay off. Strange World suffered due to this hybrid model, receiving limited marketing and underwhelming box office numbers before quietly dumping on Disney+.

This post-pandemic reliance on streaming undermined the prestige of Disney's animated releases. The contrast with Disney’s live-action films was striking. While blockbusters like The Little Mermaid remake received theatrical launches, animated projects were relegated to Disney+, giving the impression that animation was no longer a priority. This prolonged streaming-first strategy alienated audiences and tarnished the brand’s reputation for delivering must-see animated events – until Inside Out 2 was released, that is.

The Success Of Inside Out 2 & Moana 2 Proves Disney Needs To Release Its Big Animated Movies In Theaters

Theaters Should Still Matter To Disney If They Want To Repeat Their Recent Success

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Inside Out 2 was released in June 2024. It was the follow-up to the highly successful and acclaimed Inside Out. There was a lot of hype for this sequel. Everyone was excited to revisit Riley’s emotional world. However, no one could have imagined the numbers it would pull in. To date, Inside Out 2 has earned nearly 1.7 billion in gross internationally (via Box Office Mojo), and is the highest grossing animated movie ever. Disney didn’t stop there. Moana 2, which was originally supposed to release episodically on Disney +, was quickly retooled into a feature and released to theaters Thanksgiving weekend, 2024. The decision turned out to be worthwhile, as Moana 2 has currently earned over 700 million worldwide to date (via Box Office Mojo).

Related 2024's Top Trending Movies Confirm Pixar Is Truly Back After A Disappointing 4 Years Pixar had a rough run from 2020 until 2024, but the revelation that Inside Out 2 is the year's top trending movie on Google proves this is over.

From a financial perspective, the numbers speak volumes. The box office earnings of Inside Out 2 and Moana 2 far surpassed what they could have achieved through streaming alone. The success will also spark increased interest in merchandise, theme park attractions, and, eventually, Disney+ streams, creating a cycle of revenue. These successes underscore the importance of Disney releasing their animated films in theaters. The cinematic experience elevates these movies, creating something of cultural significance. In turn, it generates word-of-mouth buzz that streaming debuts often lack.

Disney’s legacy is built on its animated classics, and their recent hits prove that the appetite for animated cinema is stronger than ever. By prioritizing theatrical releases for its big animated projects, Disney can restore its reputation as the premier studio for unforgettable family entertainment.