Movies

Pixar needs original animated hits. They’re much harder to come by at the box office

BBG News

For decades, Pixar could hardly miss with its original animated films.

No matter if the topic was toys, fish, or an irascible old man, the computer animation studio in Emeryville consistently produced one successful project after another.

Due to the onset of the COVID-19 pandemic, Pixar and similar animation companies have found it difficult to make an impact at the box office with their original films. In contrast, sequels like “Inside Out 2” have become dominant in this genre instead.

Over the upcoming weekend, the original movie “Elio,” produced by Pixar under Disney’s ownership, is set for release and will present its creators with another significant challenge. This heartfelt tale centers around a young boy who yearns for companionship with extraterrestrial beings, as he feels isolated on our planet.

The projected earnings for the movie’s opening weekend in the U.S. and Canada are estimated to be between $18 million and $25 million, as stated by box office analysts. It’s worth noting that the film’s production budget is said to be around $150 million to $200 million.

In simpler terms, this means that Pixar’s latest release might be considered a gentle introduction by their usual standards because the animation industry, including movies as a whole, struggles with original content. People may say they want new stories, but they tend to buy more tickets for sequels, remakes, and familiar productions instead.

Hollywood Inc.

As a dedicated enthusiast, I can’t help but marvel at the success of long-awaited sequels such as ‘Twisters’ and ‘Beetlejuice Beetlejuice.’ Now, the question on everyone’s mind is: Will the glory of ‘Gladiator II’ keep this trend going?

Doug Creutz, a senior media and entertainment analyst at TD Cowen, pointed out that to maintain a vibrant pipeline, it’s crucial to roll out new franchises. He explained that since the pandemic ended, original animated films have been struggling at the box office, regardless of their quality.

Despite this, Pixar leaders emphasize their dedication to creating unique narratives, as these are essential for the longevity and prosperity of the animation industry.

Pixar as we know it today wouldn’t exist without ‘Toy Story,’ our debut original film 30 years ago,” wrote Pixar Chief Creative Officer Pete Docter via email. “Though we enjoy exploring fresh aspects of established worlds and characters through sequels, there’s a certain excitement in uncovering a brand-new tale.

2023 saw Disney and Pixar’s original film “Elemental” earn $29.6 million during its debut weekend, which initially led industry experts to label it as a failure. However, positive word-of-mouth recommendations boosted the movie, resulting in an impressive global box office total of $496 million.

Similarly to its sister studio, Walt Disney Animation Studios, has encountered challenges with original productions lately, such as “Strange World” in 2022 and “Wish” slated for release in 2023.

During the pandemic, attendance at animated movie theaters significantly decreased due to restrictions and health guidelines. To cater to families’ needs for entertainment during the lockdown periods caused by COVID-19, studios like Pixar started releasing their new animated films on streaming platforms instead of cinemas, thereby reducing the chance of spreading the virus.

These films, such as “Soul” (2020), “Luca” (2021), and “Turning Red” (2022) were all released directly on Disney+ streaming platform instead of being shown in cinemas. Even though they received high praise, including an Academy Award for “Soul” in the animated feature category, these movies generated only $121.9 million globally in box office earnings.

Although movie theaters resumed operations, families hesitated returning because of health concerns and comfort with home viewing. This reluctance affected the financial success of animated films, including Pixar’s 2022 “Toy Story” spinoff “Lightyear”. The poor box office performance can be attributed to its release timing, quality issues, promotional difficulties, and controversy surrounding a same-sex kiss in the movie.

Hollywood Inc.

Initially released in 2002, the original animated “Lilo & Stitch” only earned $273 million at the box office. However, the character Stitch’s fame continued to thrive over time, boosting merchandise sales and even leading to a new live-action film adaptation.

Other studios, too, face challenges with originals.

2023’s original animated film “Migration” by Universal Pictures had a relatively low earnings at the box office. In contrast, during the same year, Universal Studios garnered over a billion dollars in revenue from “The Super Mario Bros. Movie,” which is based on the famous Nintendo video game series.

In the previous year, “The Wild Robot,” an adaptation of a 2016 children’s book from Universal Studios, received favorable critic reviews. However, it only managed to generate $333 million at the box office, in contrast to the $492 million earned by Paramount Pictures’ “Sonic the Hedgehog 3.

Now family films are ruling the box office.

Thus far in the summer season, numerous movies driving the box office success have been family-oriented. These include “A Minecraft Movie” by Warner Bros. Pictures, as well as live-action adaptations such as Disney’s “Lilo & Stitch” and Universal’s “How to Train Your Dragon.

Last year, the sequel to Pixar’s “Inside Out” earned approximately $1.7 billion in global box office sales, surpassing Universal and Illumination Entertainment’s “Despicable Me 4” which grossed around $969.6 million worldwide, as well as Disney’s “Moana 2”, which made an impressive $1 billion.

A shared trait across these movies is that they are either continuations (sequels), fresh starts (reboots) or build upon established ideas (intellectual properties).

However, experts within the industry caution that continually producing new installments of established narratives might lead to monotony in the realm of animation.

According to Creutz from TD Cowen, if your goal is to expand your business, it’s essential that you create fresh content, explore new franchise opportunities, and offer novel experiences to excite customers.

Additionally, Pixar’s unique productions don’t just rely on box office success. They can also gain visibility and stimulate business within various sectors of Disney. For instance, movies eventually become available on Disney+, characters appear on merchandise, and they might even make an appearance in theme parks. This multi-faceted approach broadens a film’s influence.

David A. Gross, who writes a movie industry newsletter, stated that Pixar has a long-term focus. They aim to produce enduring stories, and while a successful sequel is welcome, their content also holds significant value for streaming platforms. In essence, there are multiple ways they can generate income from these films.

Pixar plans to put out three films every two years, with their approach being to create a new movie for each sequel. For example, the film “Elio,” initially scheduled for release in 2024, was postponed because of the simultaneous writers’ and actors’ strikes in 2023. As a result, it was exchanged with “Inside Out 2” as sequels tend to progress more smoothly through production due to existing resources.

As a passionate admirer of animated cinema, I can confidently say that Pixar has been pivotal in shaping the aesthetic, emotional resonance, and overall vibe of computer-animated films.

The firm finds itself at a critical juncture, attempting to strike a delicate balance between productions that already have a dedicated viewer base, as stated by Holliday. Simultaneously, they are striving to preserve their reputation as a pioneering studio, constantly challenging and expanding the frontiers of computer animation.

In the year ahead, Pixar intends to unveil two new films – “Toy Story 5” and an innovative production titled “Hoppers,” which centers around a groundbreaking technology that facilitates communication between humans and animals. Fast-forwarding to 2027, Pixar has announced the launch of an original movie entitled “Gatto,” a captivating tale about a remarkable feline character who possesses multiple lives.

Doctor believes that people appreciate original content just as much,” he stated. “Admittedly, it’s more challenging to make an impact amidst today’s vast amount of content, but if we dedicate ourselves to crafting something truly captivating, we have faith that the audience will respond favorably.

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2025-06-19 22:01

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