The release of 'Inside Out 2' in theaters could potentially achieve a 100-day run, but this feat is becoming increasingly uncommon.

• This weekend, "Inside Out 2" is set to hit theaters with a goal of earning a $100 million opening.
• The animated sequel is expected to have a 100-day theatrical run, which is nearly unheard-of for animated features and non-blockbuster action flicks, indicating Disney's confidence in the film.
• After pandemic restrictions eased, both Walt Disney Animation and Pixar faced challenges in reclaiming their market position at the box office.

Pixar's "Inside Out 2" is set to bring some joy to theaters with its upcoming release.

The animated sequel is predicted to surpass $85 million in domestic ticket sales during its opening weekend, making it the highest-grossing film in the US and Canada in 2024. Some predict it could even reach over $100 million in sales, a feat not achieved since July 2023 with "Barbie."

"Toy Story 4" generated $12 million on its Thursday previews and snared $120.9 million for its opening weekend, while "Inside Out 2" has already tallied $13 million from Thursday night preview showings in North America.

Pixar has been struggling to regain its position at the box office after the pandemic, but Disney is optimistic about "Inside Out 2" as it is predicted to have a 100-day theatrical run, which is rare for animated features and non-blockbuster action movies.

For cinema operators and box office analysts, a commitment to more than three months of exclusivity on the big screen is a significant deal.

The 90-day theatrical window was the industry standard before the pandemic, though the average was actually around 75 days in reality, according to market research firm The Numbers.

Few films would continue to be shown in theaters after a certain date, typically those being massive franchise films or blockbuster hits. After that time, they could be released on home video platforms such as digital downloads, DVD and Blu-Ray discs, and streaming sites. However, films would still play in theaters, but would then compete with home-market sales.

Due to the pandemic's impact, theaters were shut down, prompting studios to decide whether to postpone film releases until cinemas reopened or put them on streaming or video-on-demand platforms.

During that time, Disney chose to release some of its animated content for sale in the home market.

As theaters reopened, studios renegotiated the time frame for films to be released on the big screen before they could be made available for home viewing. This was due to the emergence of new Covid variants and the limited availability of a vaccine, which caused many moviegoers to stay home. As a result, each studio negotiated its own deal with major cinema chains, resulting in a widely variable time frame of exclusivity.

In order to transition to premium video on-demand platforms, movies had to play in cinemas for at least three weekends or 17 days.

"According to Jeff Kaufman, senior vice president of film and marketing at Malco Theaters, the sustainability of 90-day windows was always questionable. The pandemic merely sped up the process."

The shifting theatrical windows has left studios and cinemas with a complex equation.

A shorter window

Daniel Loria, senior vice president of content strategy and editorial director at the Box Office Company, explained that studios had been striving to reduce the size of the window prior to the pandemic in an effort to minimize marketing costs.

Studios spent a considerable amount to market films for their theatrical release and later had to generate buzz again for a film's transition to the home market. With shorter windows, studios don't need to spend as much to remind audiences of a film as it's likely still fresh in their minds from its debut.

Loria stated that her perception of movies being released on premium video on-demand platforms early is often a choice to avoid reallocating marketing funds.

In 2024, the average run of a widely released film is currently 29 days, according to The Numbers. However, as larger blockbuster titles are released in the summer months, this figure is expected to increase.

In 2022, "Top Gun: Maverick" played for more than 200 days in cinemas before heading to the home market.

The wait for films to become available for rent in the home market is typically longer than the wait for them to be included in subscription streaming services, which are often perceived as "free" by subscribers.

In 2023, the average time between a theatrical release and streaming subscription launch was 108 days, as reported by the numbers.

Simultaneous releases of films in cinemas and streaming platforms were initially tried, but this practice eventually declined as studios discovered it harmed sales and increased piracy rates.

In 2021, actress Scarlett Johansson sued Disney for releasing the 2020 Marvel film "Black Widow" on streaming and in theaters at the same time. She claimed that her agreement with the company guaranteed an exclusive theatrical release for her solo film, and her salary was based, in large part, on the box office performance. The case was settled for an undisclosed monetary sum.

Universal has experimented with the simultaneous release of horror movies on theaters and streaming platforms, most recently with "Five Nights at Freddy's." Despite a successful opening weekend with $80 million in domestic box office sales, ticket sales decreased by over 76% in the second weekend, reaching only $19 million.

While shorter exclusivity and lower ticket sales can negatively impact theater chains, some believe that getting the release date incorrect can harm the film as well.

According to Sean Gamble, president and CEO of Cinemark, a sufficient window is crucial not only for exhibitors but also for studio partners, as it is essential to maximize the promotional and financial benefits of a film's theatrical release, which ultimately increases the film's lifetime value across all distribution channels, including streaming.

Disney's dilemma

It's a lesson that Disney learned in the wake of the pandemic.

Disney+ has been a major factor in Walt Disney Animation and Pixar's struggles to regain a foothold at the box office after pandemic restrictions lessened and audiences returned to theaters.

The company aimed to strengthen its new streaming service by adding content, which put a strain on its creative teams and resulted in the direct release of theatrical movies to digital platforms.

Parents were trained to look for new Disney streaming titles instead of going to theaters, even when Disney decided to bring its films back to theaters.

Since 2019, no Disney animated feature from Pixar or Walt Disney Animation has grossed more than $480 million worldwide, in contrast to "Coco" which made $796 million, "Incredibles 2" which earned $1.24 billion, and "Toy Story 4" which generated $1.07 billion.

Pixar's future prospects will be gauged by box office experts based on the success of "Inside Out 2." If the film resonates with audiences and performs well financially, Pixar will regain its favor with both audiences and the industry.

A 100-day window for "Inside Out 2" may be the key.

Disney doesn't have a traditional premium video on-demand window, according to Sebastian Gomez, a research and data analyst at The Numbers. Instead, once the theatrical window is over, the movie will be available on Disney+ for free, without an intermediate rental option.

Disney is indicating that its latest Pixar film is a "must-see" by postponing its at-home release.

The 2015 release of "Inside Out" grossed $90.4 million during its first weekend and achieved a global box office total of over $850 million.

Disclosure: Comcast is the parent company of NBCUniversal and CNBC.