Disney’s Summer Movies Didn’t Shine in Theaters—But the Company Says It’s Still Winning

The Big Picture: Box Office Flops vs. Overall Wins

Disney had a rough summer at the movie theater. Two big films—"The Mandalorian and Grogu" (a Star Wars movie) and the live-action "Moana" remake—didn’t make as much money as the company hoped. But Disney’s CEO, Josh D’Amaro, says that’s okay. Why? Because these movies still made money in lots of other ways.

Important Point:
Disney doesn’t just make money from ticket sales. A movie can be a "flop" in theaters but still be a huge success for the company overall.

What Happened at the Box Office?

1. "The Mandalorian and Grogu"

• Opened: Memorial Day Weekend
• Domestic Opening: $81 million (low for a Star Wars movie)
• Worldwide Total: $345 million
• Comparison: Previous Star Wars films like The Rise of Skywalker and The Last Jedi made over $1 billion each.

2. Live-Action "Moana"

• Opened: Last month (summer 2026)
• Worldwide Total: $262 million
• Production Budget: ~$250 million
• Result: Variety reports the movie could lose Disney $100 million in theaters.

So Why Is Disney Still Happy?

Disney leaders say these movies feed the "Disney Flywheel"—a cycle where one success powers many others. Here’s how:

Merchandise Sales

• The Mandalorian and Grogu drove healthy growth in Star Wars toys, clothes, and collectibles.

Theme Park Attendance

• The movie drew guests to the updated Millennium Falcon attraction at Disneyland and Walt Disney World.

Gaming Engagement

• Significant player activity in Star Wars video games.

Streaming Power (Disney+)

• The original animated Moana is one of the most-streamed movies ever.
• The live-action version is expected to be a strong title on Disney+, keeping subscribers happy.

The "Flywheel" Effect

CFO Hugh Johnston explained it best:
"The theatrical window is just one data point. The real value of that IP (intellectual property) is the cumulative benefit of decades-long storytelling and our ability to take that IP and lay it into the entirety of the Disney flywheel."

Translation: One movie feeds toys, parks, streaming, games, and more—for decades.

The Good News: Spider-Man Saves the Day

Disney pivoted to a huge win: Spider-Man: Brand New Day.

• Released by Sony, but part of Disney’s Marvel Cinematic Universe (MCU).
• Record-breaking success—audiences showed up in force.
• Spider-Man (65 years old!) remains a top seller in consumer products, parks, and streaming.
• This bodes very well for Disney’s next big bet: Avengers: Doomsday (coming December 18).

Important Point:
Even when Disney doesn’t distribute a movie (like Spider-Man), it still profits from the character across its empire.

How Disney’s "Portfolio Game" Works (In Simple Steps)

1. Make a movie (even if it might not hit $1B in theaters).
2. Launch toys, clothes, games tied to the movie.
3. Update theme park rides to match the movie.
4. Add the movie to Disney+ for years of streaming revenue.
5. Use the characters in future movies, shows, and attractions.
6. Repeat—building a library that pays off for decades.

Summary

• Two summer movies underperformed in theaters: The Mandalorian and Grogu ($345M global) and live-action Moana ($262M global vs. $250M budget).
• Disney says they’re not failures—they boosted merchandise, park visits, gaming, and future streaming.
• The "Disney Flywheel" means one piece of content powers many revenue streams.
• Spider-Man’s huge success proves audiences still love theatrical events—and sets up Avengers: Doomsday for a strong debut.

FAQ

Q: If a movie loses money in theaters, how can Disney still profit?
A: Disney owns theme parks, streaming (Disney+), merchandise licensing, video games, and more. A movie can drive revenue in all those areas long after it leaves theaters.

Q: What is the "Disney Flywheel"?
A: It’s a business model where each part of Disney (movies, parks, streaming, products) feeds the others. A hit movie → more park visits → more toy sales → more streaming subscribers → more demand for the next movie.

Q: Why did The Mandalorian and Grogu make so little compared to other Star Wars films?
A: The article doesn’t specify exact reasons, but factors could include franchise fatigue, competition, or audience preference for streaming series over theatrical spin-offs.

Q: Does Disney make money from Spider-Man: Brand New Day even though Sony released it?
A: Yes! Disney’s Marvel Studios co-produces and integrates Spider-Man into the MCU. Disney profits from merchandise, theme park attractions, Disney+ streaming rights, and the character’s value in future Avengers films.

Q: When is Avengers: Doomsday coming out?
A: December 18 (this year).