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Inside Out 2" debuts in theaters, potentially achieving a rare 100-day run, reflecting its anticipated popularity and viewer engagement.
Key Highlights:
Disney is anticipating a triumphant return to theaters with the upcoming release of Pixar’s "Inside Out 2." Initial forecasts predict that the animated sequel will achieve an impressive domestic opening weekend, with expectations set at over $85 million. Some industry analysts even project that the film could surpass $100 million in ticket sales, which would mark the highest debut for any film released in the United States and Canada in 2024, rivaling the success of Warner Bros.' "Barbie" in July 2023.
Boston Brand Media discovered the trending "Inside Out 2" has already made a strong start, earning $13 million from Thursday night preview showings in North America. Comparatively, "Toy Story 4" generated $12 million from its Thursday previews and went on to gross $120.9 million during its opening weekend in 2019.
For Pixar, achieving an opening figure above $50 million would be significant, given the challenges the studio has faced in rebuilding its box office presence post-pandemic. Despite these obstacles, Disney is expressing confidence in "Inside Out 2," planning for a 100-day theatrical run. This extended run is unusual in today's cinema landscape, particularly for animated features and non-blockbuster films.
Boston Brand Media looked into the discussion around theatrical release windows remains pertinent, with most audiences indifferent to the exclusive theater-first period before a film's streaming release. However, for cinema operators and box office analysts, Disney's commitment to over three months of exclusivity for "Inside Out 2" signals a noteworthy strategy.
Before the pandemic, the industry standard was a 90-day theatrical window, though the actual average was closer to about 75 days. Only a select few films, usually major franchise entries or blockbuster hits, extended beyond this window. Post-pandemic closures forced studios like Disney to navigate releasing films amidst uncertain theater reopenings, prompting simultaneous releases on streaming platforms and in theaters.
During this period, Disney opted to release several of its animated offerings for at-home viewing, reflecting evolving consumer behaviors and preferences. As "Inside Out 2" gears up for release, Disney's strategic choices and the film's strong early performance underscore renewed optimism for the theatrical experience and the enduring appeal of animated films in today's cinema market.
As theaters cautiously reopened amid ongoing pandemic concerns and fluctuating public health conditions, studios and cinema chains found themselves renegotiating the traditional theatrical release windows. Historically, films were required to have a significant exclusive run in theaters before being available for home viewing. However, the challenges posed by new Covid variants and the slow rollout of vaccines prompted studios to reassess these norms.
For instance, Universal and Focus Features struck a new deal that allowed their films to transition to premium video on-demand platforms after just three weekends, or approximately 17 days, in cinemas. This marked a significant departure from the previous industry standard of a 90-day theatrical window. According to Jeff Kaufman, senior vice president of film and marketing at Malco Theaters, the pandemic accelerated the inevitable shift away from longer theatrical exclusivity periods.
The adjustment in theatrical release windows has introduced a new layer of complexity for studios and cinemas alike. Each studio negotiated varying terms with major cinema chains, leading to a diverse range of release strategies. This variability reflects the industry's adaptation to changing consumer behaviors and the ongoing impact of the pandemic on moviegoing habits.
Overall, the evolving landscape of theatrical release windows underscores the industry's resilience and flexibility in responding to external challenges, while also highlighting the strategic recalibration necessary to meet shifting audience preferences and market conditions.
A Shorter Theatrical Release Window
Prior to the pandemic, studios had already been advocating for shorter theatrical release windows primarily to reduce marketing costs, as explained by Daniel Loria, senior vice president of content strategy and editorial director at the Box Office Company. Traditionally, studios incurred substantial expenses promoting films for their theatrical debut and then faced the challenge of rekindling audience interest months later for the home market release. By shortening these windows, studios could capitalize on the film's initial buzz and potentially save on marketing expenditures required for reintroducing the film to audiences.
According to Loria, the decision to release films early on premium video on-demand (PVOD) platforms often reflects a strategy to avoid duplicating marketing expenditures. When a film remains fresh in viewers' minds from its recent theatrical run, studios can leverage that familiarity to maintain momentum without the need for extensive re-marketing efforts.
In 2023, the average theatrical run for widely released films was 39 days, according to data from The Numbers. However, in 2024, this average has decreased to 29 days. As the summer blockbuster season approaches and major titles are scheduled for release, industry experts anticipate that the average theatrical run duration will likely increase.
These trends underscore how studios are adapting their distribution strategies in response to evolving audience behaviors and market dynamics. By strategically managing theatrical release windows and leveraging digital platforms, studios aim to optimize their marketing investments and maximize the reach and profitability of their films in an increasingly competitive landscape.
Average theatrical window by major Hollywood studio in 2023
The landscape of film distribution has undergone significant evolution, with studios navigating between traditional theatrical releases and the growing influence of digital platforms. While many films adhere to standard theatrical windows before transitioning to the home market, there are notable exceptions where films have extended their theatrical runs significantly.
In 2022, Paramount and Skydance's "Top Gun: Maverick" notably played in cinemas for over 200 days before becoming available for home viewing. This extended period underscored the film's box office longevity and the studios' strategy to maximize theatrical earnings before broadening its reach to digital rentals.
The timeline for when films transition from theaters to streaming subscription services varies considerably. According to The Numbers, in 2023, the average wait time between theatrical release and streaming subscription availability was 108 days. This delay aims to preserve the theatrical exclusivity and maximize revenue from traditional ticket sales before making content more widely accessible through streaming platforms.
Early experiments with day-and-date releases, where films debuted simultaneously in theaters and on streaming platforms, faced challenges. Studios discovered that such releases could potentially cannibalize box office sales and increase piracy rates. Consequently, the industry shifted away from this model, favoring staggered release strategies to optimize revenue streams and audience engagement.
Legal considerations also play a crucial role, as demonstrated by Scarlett Johansson's lawsuit against Disney over the release of "Black Widow." Johansson argued that the simultaneous streaming release breached her contract, which stipulated a theatrical debut that could impact her compensation tied to box office performance. The subsequent settlement highlighted the complexities studios face in balancing contractual obligations with evolving distribution strategies.
Despite the appeal of streamlined release windows, stakeholders across the industry recognize the importance of a sufficient theatrical window. Sean Gamble, president and CEO of Cinemark, emphasized that a robust theatrical release not only benefits exhibitors but also enhances a film's overall financial and promotional impact across all distribution channels, including streaming.
As studios and theaters continue to navigate these dynamics, finding the right balance between theatrical exclusivity, digital distribution, and audience preferences remains a critical challenge in shaping the future of film distribution strategies.
Disney's Current Dilemma
Disney's approach to releasing animated features directly on its streaming service, Disney+, during and after the pandemic has significantly impacted their box office performance and audience perceptions. This strategy aimed to bolster Disney+ content but inadvertently shifted consumer habits towards streaming rather than traditional theater-going for new Disney releases.
This shift was notable even after Disney resumed theatrical releases, as audiences had become accustomed to accessing new Disney titles on streaming platforms first. Consequently, Disney's recent animated features from Pixar and Walt Disney Animation have struggled to achieve the same box office success as their pre-pandemic hits. For instance, since 2019, no Disney animated feature has surpassed $480 million at the global box office, contrasting sharply with earlier successes like "Coco" ($796 million globally), "Incredibles 2" ($1.24 billion), and "Toy Story 4" ($1.07 billion).
The upcoming release of "Inside Out 2" is viewed as a critical test for Pixar's recovery and its standing within the industry. Box office analysts and industry observers are closely watching how well "Inside Out 2" performs during its opening weekend and beyond. If the film can capture audience attention and generate strong box office numbers, it could signify a resurgence for Pixar and bolster confidence in its future releases.
In essence, Disney's strategy of simultaneous streaming and theatrical releases during the pandemic has reshaped audience behavior and expectations, posing challenges and opportunities for the studio as it navigates the evolving landscape of film distribution and consumer preferences.
Recent Pixar domestic opening weekend results
A 100-day theatrical window for “Inside Out 2” could indeed be pivotal for Disney's strategy. Unlike many other studios that typically transition films to premium video-on-demand platforms after a few weeks, Disney's approach of forgoing this intermediate rental option and moving directly to Disney+ after the theatrical run underscores its commitment to maximizing box office revenue and emphasizing the theatrical experience.
For Disney, delaying the at-home release reinforces the message to audiences that “Inside Out 2” is best experienced in theaters, positioning it as a must-see event. This strategy aims to capitalize on the appeal of Pixar's storytelling and the immersive cinematic experience to drive box office success.
The original “Inside Out” film, released in 2015, demonstrated strong box office performance with a $90.4 million opening weekend and a total global box office gross exceeding $850 million. Disney likely hopes to replicate or even exceed this success with the sequel by maintaining a longer theatrical exclusivity period and leveraging audience enthusiasm for Pixar's acclaimed storytelling.
In summary, Disney's decision to extend the theatrical window for “Inside Out 2” reflects a strategic move to prioritize box office earnings and enhance the film's cultural impact, leveraging the anticipation and exclusivity associated with a theatrical release before transitioning to streaming platforms like Disney+.
For questions or comments write to writers@bostonbrandmedia.com
Source: CNBC
