It's Officially the End of an Era for Disney+ - MCE Notices | California State Portal

Disney+ is at the dawn of a new era. The streaming giant remains one of the biggest competitors in the ongoing “Streaming Wars,” delivering big-budget spectacles for the small screen in a way that would have been impossible just a few years ago. Now, seven years into its run, the platform is turning a new page with The Mandalorian and Grogu.

The new Star Wars spin-off film is an extension of The Mandalorian, which ran for three seasons on Disney+. This is also the first theatrical release spun off from a Disney+ original series. While the film has experienced unexpected hiccups at the box office in its first few weeks, its very existence may be enough to prove that Disney+ is entering a brand-new era unlike anything it’s ever done before.

The Mandalorian and Grogu Sets a New Course for Disney+

The Mandalorian and Grogu is a fresh start for Disney+ seven years after it first launched in 2019. At its debut, the streaming service premiered the first episodes of The Mandalorian, the first-ever live-action Star Wars series. Bolstering stunning visuals unlike anything that had been seen on television before and several major surprises for hardcore fans of the franchise, The Mandalorian served as proof of concept that more similar series could follow.

And they did. In the years since The Mandalorian, Disney+ has released numerous live-action Star Wars shows, including The Book of Boba Fett, Ahsoka, Skeleton Crew, The Acolyte, and Andor. Many other franchises have turned Disney+ into their home since, including the Marvel Cinematic Universe and Percy Jackson & the Olympians. Now, once again, The Mandalorian becomes a core mover and shaker in the realm of streaming.

For the first time in Disney+’s short history, one of the platform’s key titles has jumped to the big screen. This would have been an unthinkable move when the so-called “streaming wars” first began, as platforms rushed to flesh out their online libraries with maximum prejudice. Now, Disney moves in the opposite direction, taking one of its most popular properties from streaming to the silver screen.

This move may have been motivated by any number of factors, including the dawning realization among many streamers that their business models aren’t built for long-term profits. Television shows have never been as profitable as theatrically released movies, but are beginning to cost around the same price to make, if not more. This makes it very difficult for any show to earn back its budget, resulting in numerous cancellations.

The Mandalorian and Grogu is a refreshing step back into the theaters for Star Wars for the first time since 2019. It could also lay the groundwork for future titles to do likewise. Disney could have very easily put the new movie directly on its streaming platform, but elected instead to push for a theatrical release. This may represent a move back toward theatrical releases for its major franchises, including Star Wars and the MCU.

Will Other Streamers Move for Theatrical Releases?

Image via Disney / Courtesy the Everett Collection

While one would have never expected it just a few years ago, many streaming services are moving toward theatrical releases for major titles. Disney+ is actually a bit later to the game than its biggest competition, Netflix, which was once theorized to be the platform that would finally kill the theatrical release. Against all odds, the original streaming giant is officially embracing the theatrical release model after years of resistance.

Netflix and movie theaters have rarely gotten along, but the tides seem to be shifting as a new era of the streaming wars begins. The platform has already released several of its original movies in theaters for limited runs before their streaming debuts. This was the case for major releases like the second and third Knives Out films and the Academy Award-winning drama, Frankenstein. Several upcoming movies, including Greta Gerwig’s highly anticipated Chronicles of Narnia reboot, will also premiere in theaters.

Even more surprising is Netflix’s decision to air television episodes in theaters. This was the case with the Stranger Things series finale, which was available in theaters for two days at the time of its release. This was an unprecedented move that the streamer has yet to repeat, but the episode’s strong box office earnings for that limited run could warrant a second go at this strategy for another popular series.

If Netflix and Disney+ are both willing to incorporate movie theaters in their streaming plans, this could lead to other streaming services doing the same thing. Audiences shouldn’t be surprised if platforms like HBO Max, Paramount+, or Peacock begin shooting for similar release strategies. This could be the dawn of an entirely new era for streaming and theaters.

What’s Next for Disney+?

While Disney+ could have an exciting future mingling its most popular projects with movie theaters, The Mandalorian and Grogu could put a stop to this brand-new era before it has even truly begun. Despite being the first Star Wars film to release in theaters since The Rise of Skywalker, The Mandalorian and Grogu is struggling to keep pace at the box office. As it stands, the film is likely to finish at a loss by the end of its theatrical run.

The film had a mediocre opening weekend, followed by the biggest second-weekend dropoff of any Star Wars film in the last forty-nine years. So far, the film has earned a little under $300 million at the worldwide box office, which is decidedly less than it needs to recoup its already meager $165 million budget (most movies need to win two to two-and-a-half times their production budgets to break even). Surprisingly, even lower-budget indie horror films like Obsession and The Backrooms are outperforming Star Wars at the box office.

With heavy competition on the horizon in the form of upcoming films like Disclosure Day, Toy Story 5, and Supergirl, it doesn’t seem likely that The Mandalorian and Grogu‘s box office woes will get any better in the coming weeks. The film will most likely finish on a loss at the box office, as the second-lowest-grossing Star Wars film of all time (after Solo: A Star Wars Story).

It isn’t all bad news for The Mandalorian and Grogu, however. Star Wars has always thrived on selling merchandise based on its movies, and Grogu is one of the franchise’s top sellers. The new movie will most likely turn a profit after the theatrical window, though this still isn’t ideal for Lucasfilm and Disney.

With The Mandalorian and Grogu‘s underwhelming performance in theaters, Disney may be scared off from mingling its streaming and theatrical release plans altogether. If this new Star Wars film was a test run, things didn’t go particularly well. Nevertheless, there is always a chance that Disney learns its lessons from The Mandalorian and Grogu and returns in a few years with a different strategy.

The Mandalorian and Grogu could represent a new era for Disney+, or the end of an experimental stage just as it was beginning. Only time will tell how Disney manages the film’s disappointing box office moving forward, and this decision will doubtlessly heavily affect the future of major franchises like Star Wars.

The Mandalorian and Grogu is currently playing in theaters.