This year, three Disney films may surpass the $1 billion mark at the box office, following a period of sluggish performance.

• Disney's post-pandemic box office has been inconsistent, but by mid-2024, the studio seems to have found its rhythm.
• At the global box office, 'Inside Out 2' has surpassed all other animated films and grossed over $1.5 billion.
• An R-rated film, "Deadpool & Wolverine," had the best domestic opening and has earned over $850 million in global ticket sales.
• "Moana 2," the eagerly awaited sequel to the 2016 hit "Moana," is set to be released this year.

In 2024, after years of fluctuating box office success, seems to have found stability.

"Inside Out 2" has become the highest-grossing animated film of all time, earning $1.5 billion at the global box office, while "Deadpool & Wolverine," the first R-rated Marvel Cinematic Universe film, set a new record for an R-rated movie and is expected to surpass the $1 billion mark before its run ends.

And the box office hits aren't expected to stop there.

The studio is set to release "Moana 2," the highly anticipated sequel to the 2016 hit "Moana," over the Thanksgiving holiday. Despite generating only $700 million at the global box office, the first film's popularity is expected to drive high ticket sales in November. In fact, it was the most streamed film of 2023.

"Inside Out 2" has generated nearly double the $850 million its predecessor secured in 2015, resulting in Disney's success from its animated franchises this year.

"Disney has experienced a remarkable comeback year, landing a trifecta of hits in the same year, despite the growing exclusivity of the billion-dollar club."

The studio's wild card for December is "Mufasa: The Lion King," a prequel to the 2019 blockbuster "The Lion King." Although its predecessor grossed $1.6 billion worldwide, with over $1.1 billion coming from international markets, it remains uncertain how receptive audiences will be to this photorealistically animated sequel.

Disney has consistently been a major player in the box office, generating substantial revenue both domestically and internationally. Although its theatrical business accounts for only a small portion of its overall annual earnings, it plays a significant role in Disney's overall strategy. The company leverages its theatrical successes across various departments, including franchises such as Star Wars, Marvel, Avatar, and Pixar, which have expanded beyond the big screen to become popular theme park lands, TV shows, and merchandise.

Despite Disney's theme parks experiencing rapid growth and generating substantial revenue, the recent box office slump was exacerbated by lower consumer demand and inflation in the Disney parks and experiences segment.

The success of its theatrical business is crucial for Disney to drive growth in other areas of its business.

Billion-dollar track record

More than half of the 53 billion-dollar hits at the box office have been produced by Disney, according to Comscore data.

Two billion-dollar films, "Avatar" and "Titanic," were produced by 21st Century Fox before the merger with Disney, but are now considered part of Disney's collection. Meanwhile, two Marvel Spider-Man films co-produced by Disney and Sony have surpassed $1 billion, but they are not included in Disney's total revenue because they were distributed by Sony.

Despite having seven theatrical releases gross over $1 billion in the year prior to the pandemic, Disney experienced a cinematic downturn due to theater closures, production halts, and a strained creative team.

Disney faced criticism for prioritizing quantity over quality in its major franchises, as well as for content that became too focused on social messages.

Despite the success of "Avatar: The Way of Water" and several Marvel movies grossing over $800 million worldwide, Disney experienced some of its lowest animated feature earnings in recent years and its lowest-ever MCU release.

"Disney's recent box office performances have been disappointing, but it is unwise to underestimate the studio's ability to recover, according to Shawn Robbins, founder of Box Office Theory. The studio has made strategic moves to address their commercial struggles and is now seeing early success with their renewed focus on quality franchise content and the moviegoing experience."

Since his return to Disney in late 2022, CEO Bob Iger has frequently spoken about the company's struggles in theaters.

Disney's decline in theatrical success, according to him, was due to several reasons. During Covid lockdowns, the company shifted its focus to streaming, which conditioned audiences to expect its films that way. The pandemic also made it challenging for executives to manage the increased number of film and television productions. Furthermore, he stated that Disney's efforts to provide more content for Disney+ led to a decline in quality.

Iger pledged to investors that Disney's creatives would turn things around, and so far, it seems like he's keeping his word.

During the most recent quarter, the company's outperformance in its content sales and licensing division was attributed to "Inside Out 2" by him. The first "Inside Out" resulted in over 1.3 million Disney+ sign-ups and more than 100 million views globally since the first trailer for "Inside Out 2" was released last November.

He also boasted about the company's upcoming franchise offerings in the near future.

"Iger announced during Wednesday's earnings call that the company will be releasing several movies in the next two years, including "Moana," "Mufasa," "Captain America," "Snow White," "Thunderbolts," "Fantastic 4," "Zootopia," "Avatar," "Avengers," "Mandalorian," and "Toy Story." These movies have the potential to drive both box office success and global streaming value, making the company's future prospects bullish."

Disney's biannual D23 Expo in Anaheim, California this weekend will provide investors with a bigger glimpse into its theatrical plans.

"Disney's influence on the industry's present and future is undeniable, as evidenced by the success of Marvel, Pixar, and the potential for a Star Wars rebound under Lucasfilm, according to Robbins."