Inside Out 2: The First Test of Disney's New Strategy
Disney's Inside Out 2 represents the first test of Bob Iger's new strategy.
Inside Out 2 is poised to be the first big test of Disney's new theatrical strategy. This week, CEO Bob Iger spoke at the Morgan Stanley Conference and talked up the current strategy for Disney. Inside Out 2 represents the new vision for the company as it relates to sequels for popular franchises. In a cinematic landscape that's been changed forever by the last few years, Disney is targeting some fan-favorites to get people back into theaters. But, not just nostalgia plays, movies with emotional impact. Inside Out 2's new trailer is aiming straight for the heartstrings of viewers. It will be interesting to see if it can pull off better performance that the first movie.
Iger said at the conference, "A lot of people think it's audience fatigue, it's not audience fatigue. They want great films. And if you build it great, they will come and there are countless examples of that. Some are ours and some are others. Oppenheimer is a perfect example of that. Just a fantastic film."
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"Focus is really important. We reduced the output of Marvel, both number of films they make, and the number of TV shows, and that really becomes critical, but I feel good about the team," he continued. "I feel good about the IP we're making. I talked about a lot of the projects. We look years ahead, really. And it's iterative."
This is a year that sees Disney targeting big names like Moana, Deadpool, Planet of the Apes and more as tentpole films for the year. While the end of 2024 has all that stacked up, Inside Out 2 is the first real test. Pixar's movie is something that gets referenced a lot by fans. However, it never grossed $1 billion at the box office. The sequel probably won't do that. In spite of that admission, it should still clean up based on some fan-favorite additions to the cast and other factors.
The Early Returns For Inside Out 2 Are Positive
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If the starting blocks are any indication, Inside Out 2 is off to a good start. The sequel managed to notch Disney's biggest animated trailer launch ever. Inside Out 2 had a whopping 157 million views in the first 24 hours alone. The previous record-holder was Frozen 2. That performance would seem to indicate that audience interest is there. After all, Inside Out premiered all the way back in 2015. It's almost been a decade since viewers have checked in on Riley and her emotions. Tons of people have streamed the first adventure that saw Joy and her friends trying to help the young girl. Expect a lot of new viewers along for this new movie too.
Pixar's CCO had to thank the fans back when the trailer debuted. "We are thrilled so many people have tuned in to check out the new trailer for 'Inside Out 2,'" Pete Docter said. "When the first film came out, we knew that by telling a story where we could see our emotions — those little voices inside your head — there would be so much more to explore than we could possibly fit into one film. We couldn't be more grateful to see the kind of response the trailer has received so far. Thank you to all who have checked it out — we can't wait for everyone to see the film when it comes to theaters next summer."
Disney's Plans Moving Forward
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Previous investor calls have left little doubt of what Disney's plans for 2024 and beyond are. If Inside Out 2 beats projections, expect more of these sequels and big franchises moving forward. Bob Iger touted follow-ups to Zootopia, Frozen and Toy Story in the coming years. While Frozen and Toy Story have seen sequels of their own, this would be the first sequel to Zootopia. (Following the pattern set up by Inside Out 2.) You would also expect Marvel and other tentpoles to follow suit as well.
"And today, I'm so pleased to announce that we have sequels in the works from our animation studios to some of our most popular franchises: Toy Story, Frozen, and Zootopia. We'll have more to share about this production soon, but this is a great example of how we're leaning into our unrivaled brands and franchises."
"And so, with that goal in mind, we will focus even more on our core brands and franchises, which have consistently delivered higher returns. We will aggressively curate our general entertainment content," he continued. "We will reassess all markets we have launched in and also determine the right balance between global and local content. We'll adjust our pricing strategy, including a full examination of our promotional strategies."
How well do you think Inside Out 2 will do? Let us know down in the comments!