Disney’s Little Mermaid Live-Action Was a Bigger Flop Than Anyone Thought — Remake Cost Nearly $380 Million & Sank at the Box Office

Disney’s lavish live-action adaptation of “The Little Mermaid” has unfortunately earned a place in the record books, but not for any positive reasons. As reported by Caroline Reid at Forbes, the production cost for this film skyrocketed to a staggering $379.8 million, making it one of the most expensive flops in Hollywood’s history.

A Budget That Just Kept Growing

Upon its debut in May 2023, there were whispers in the entertainment industry that Rob Marshall’s live-action version of “The Little Mermaid” had a production budget estimated around $250 million. This figure, being quite high, was considered extravagant for a musical remake of an iconic animated film.

It was later unveiled through UK filings that Disney’s actual expenditure was significantly more than initially stated. An examination of these documents by Forbes in 2023 and 2024 revealed that the spending had escalated to $297 million, which subsequently increased to $355.1 million, despite Disney seeking tax refunds.

Currently, newly revealed data shows the total amount has climbed once more, now standing at approximately $379.8 million. This figure does not account for global marketing costs, which insiders roughly estimate to be an additional $140 million.

Box Office Returns Fell Short

In terms of box office collections, The Little Mermaid didn’t bomb entirely. It earned approximately $569.6 million globally during its theatrical release. However, for the majority of films, that amount would be considered successful. Yet, when a production company invests nearly $380 million even before advertising costs, breaking even becomes an unattainable goal that lies far beyond reach.

Approximately half of the box office earnings usually goes to Disney after theaters have taken their share. This translates to an estimated earning of approximately $285 million from worldwide sales, which is significantly lower than their production expenses and doesn’t even begin to cover promotional costs.

In simpler terms, even without considering extra costs, The Little Mermaid struggled financially.

The Real Losses

After considering all factors, analysts calculate that the budget for Disney’s live-action remake totalled more than $520 million, including both production and marketing expenses. Despite earning approximately $285 million at the box office, the film is predicted to have lost hundreds of millions due to these costs.

This tale of “The Little Mermaid” can be found alongside other notable financial flops from Tinsel Town, such as “John Carter” and “Tomorrowland”. Interestingly enough, these are also creations that originated from Disney Studios.

A Pattern of Expensive Failures

Another way of stating this could be: Although The Little Mermaid is a notable instance of escalating expenses, it’s not the only film that has fallen short in Disney’s recent collection.

Mufasa: The Lion King (2024) – Billed as a prequel to Jon Favreau’s 2019 remake, Mufasa struggled to justify its massive production budget. Early estimates pegged the film at over $250 million, and it failed to capture the same box office lightning as its predecessor. While not an outright flop, it was certainly a commercial disappointment.
Haunted Mansion (2023) – Released just weeks after The Little Mermaid, this family-friendly remake cost around $150 million to make, not including marketing. It barely scraped past $115 million worldwide, making it one of Disney’s most glaring flops of the decade.
Strange World (2022) – Disney’s original animated adventure reportedly cost $180 million to produce. It flopped with only $73 million worldwide, resulting in estimated losses of around $200 million.
Indiana Jones and the Dial of Destiny (2023) – While not strictly a Disney-created IP, the Lucasfilm sequel carried a production cost north of $300 million and limped to $384 million worldwide. It has since become shorthand for blockbuster overspending.
Snow White (2025) – The long-delayed live-action remake starring Rachel Zegler has become another high-profile headache for Disney. With a budget reportedly over $200-$300 million due to expensive reshoots, the film faced public backlash before release thanks to Zegler’s controversial comments and the studio’s awkward marketing. The film made $207.8 million worldwide, with only $87.2 million coming from the domestic box office. That places Snow White firmly among the ranks of Disney’s costly misfires.

Looking at them collectively, these losses present a concerning image: Time and again, Disney takes considerable risks with inflated production costs which are hard to recover in the current movie theater industry.

Controversy Over Ariel’s Casting

One significant aspect influencing the response towards “The Little Mermaid” was Disney’s choice to portray Ariel differently ethnically compared to her original animated version. Prior to its release, the casting of Halle Bailey in the lead role ignited a broad conversation, generating debate well before it reached the silver screen.

Enthusiasts commended the remake as a contemporary refresh, yet detractors criticized Disney for inserting identity politics into a cherished tale. The uproar escalated on social platforms, with hashtags, petitions, and even global opposition – predominantly in areas where viewers felt less tied to the revamped character.

Although some media outlets brushed off the criticisms as simply “negative reviews,” the statistics reveal a more intricate narrative. The movie adaptation of The Little Mermaid, it seems, fell short in international markets where people have a stronger bond with Ariel’s original design. In countries such as China and South Korea, the film was met with apathy or outright rejection, which played a significant role in its failure to even approach the $1 billion target that Disney had anticipated.

Essentially, Disney’s attempt to modernize ‘The Little Mermaid’ might have backfired, leading to discord and isolating some parts of the worldwide audience. Moreover, the uproar about Ariel’s redesign likely contributed significantly to the film’s underwhelming performance at the box office, given the escalating production expenses.

Why The Little Mermaid Production Cost Matters

news about the escalating budget of “The Little Mermaid” couldn’t have arrived at a more inconvenient moment for Disney. The company is already grappling with weak earnings from its Marvel movies, expensive blunders in streaming services, and stiff competition from Universal’s Epic Universe theme park.

The remake was expected to be an unmissable cultural spectacle – a contemporary retelling of one of Disney’s dearest animated movies. However, it morphed into a high-cost warning story, highlighting the unsustainable nature of Disney’s production system as it currently stands.

If an established work such as “The Little Mermaid” struggles to make a profit despite its well-known status, widespread promotion across the globe, and extensive tie-ups with merchandise, what chance do more daring ventures have?

Currently, “The Little Mermaid” stands as one of our costliest box office disappointments to date, embodying the broader issues challenging Disney’s creative approach. If we don’t curb our expenses, future high-stakes ventures could similarly falter due to excessive ambition.

2025-09-04 00:00