Is 2024 the Year Disney Stops Releasing Major Animated Films on Disney+?

Disney animated features have always been essential in the realm of cinematic entertainment. This year, audiences witnessed the triumph of two monumental releases: the record-breaking Inside Out 2 and the groundbreaking Moana 2. A few years back, however, Disney found itself navigating a dramatic shift in its distribution strategy with the onset of the COVID-19 pandemic. Just as they were launching their Disney+ streaming service, the decision was made to release major animated films directly to the platform, bypassing traditional theater releases entirely.

This streaming strategy, while initially justifiable during the pandemic, continued long after theaters reopened, emphasizing shorter release windows and even day-and-date models. Yet, the impressive financial success of Inside Out 2 and Moana 2 — collectively raking in over two billion dollars — may signal a pivotal change. The enthusiastic response to these sequels illustrates a renewed desire for the cinematic experience, emphasizing that the trend of sidelining theatrical releases for major animated titles must come to an end.

The Backlash Over Disney’s Streaming-First Approach

Controversy Arises From Fans, Creators, and the Industry

The announcement in 2020 that Pixar’s highly awaited film Soul would skip theaters in favor of Disney+ was met with widespread disappointment. Disney and Pixar have long been synonymous with magical family experiences, arthouse visuals, and blockbuster storytelling. Fans anticipated the thrill of shared storytelling in theaters, while exhibitors thrived on filling seats. However, the streaming shift led Disney to follow Soul with a series of films like Raya and the Last Dragon, Luca, and Turning Red, effectively sidelining traditional releases.

This pivot resulted in minimal theatrical windows or in some cases, no theatrical release at all, diminishing the magic that Disney films are known for. Exhibitors faced harsh economic consequences, creatives felt disheartened, and audiences were deprived of the cherished communal experience. By prioritizing streaming, Disney diminished the cultural resonance of these films, transforming what could have been defining cinematic moments into mere digital offerings. Additionally, this trend impacted Disney’s wider business ecosystem; animated films often contribute significantly to merchandise sales and overall brand value, signaling that Disney left both money and magic unclaimed during this period.

Streaming Shift: A Covid-Era Necessity that Overshadowed its Purpose

Continuing the Pandemic-Era Strategy Proved Costly

As the pandemic unfolded in 2020, film studios scrambled to adapt. With shooting schedules disrupted and cinemas shut down, many opted to utilize their streaming platforms as alternative distribution avenues. Disney’s early decision to release Soul was more of a pragmatic response than a calculated strategy, providing families with entertainment while increasing Disney+ subscriptions.

However, as cinema gradually reopened, studios hesitated to embrace traditional releases again. With the boost in streaming subscribers, many explored hybrid release strategies, including limited theater runs followed by quick transitions to streaming. While some films met with success, others like Strange World floundered under these constraints, suffering from minimal marketing efforts and low box office returns before being relegated to Disney+.

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This continued dependence on streaming eroded the prestige of Disney’s animated offerings. In stark contrast to the live-action films, which enjoyed theatrical releases, Disney’s animated projects often felt marginalized. This approach led to audience alienation and diminished the brand’s reputation for delivering significant animated experiences — at least until the debut of Inside Out 2.

The Box Office Triumph of Inside Out 2 & Moana 2 Highlights the Importance of Theatrical Releases

Reviving Theatrical Releases: A Path to Financial Success

Released in June 2024, Inside Out 2 quickly surpassed expectations. Following the acclaimed first installment, the sequel’s revenue reached nearly 1.7 billion dollars globally (via Box Office Mojo), making it the highest-grossing animated film in history. Additionally, Moana 2, which was initially slated for Disney+ release, was adapted into a theatrical feature and released over the Thanksgiving weekend of 2024, garnering over 700 million dollars worldwide (via Box Office Mojo).

The financial implications are profound. Both films achieved blockbuster status that streaming could not have replicated. Furthermore, their success has paved the way for increased interest in related merchandise, theme park attractions, and later streaming views, establishing a lucrative cycle of revenue. The theatrical experience transforms these films into culturally significant events, generating essential word-of-mouth that often escapes streaming releases.

Disney’s legacy relies heavily on its animated classics, and the recent achievements signify that the demand for animated films remains robust. By focusing on theatrical releases for significant animated projects, Disney can restore its reputation as the premier source of unforgettable family-oriented entertainment.

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