Introduction:
Disney has always been the go-to for a little bit of magic and a lot of imagination, bringing unforgettable stories and iconic characters from the page to our screens. The message ‘If you can dream it, you can do it’ has continued to set the stage for the animation powerhouse’s defining eras. Yet, in recent years, as they repeatedly revisit the same stories, the question arises: is the magic wearing thin?
The success of Disney as an empire is often attributed to their process of re-dreaming and re-imagining, captivating generations of audiences. But now, as the company attempts to sell reboot after reboot to its fanbase, with nine live-action remakes in development as of 2025, it is clear the attention has shifted from innovation to conservatism. There is an over-reliance on nostalgia as a marketing strategy, with many franchises that were once fan favourites, like Star Wars, Marvel and Toy Story, being overburdened with lackluster content. This shift is not only affecting the brand Disney has built over the decades, but also has the potential to create consequences well into the future. Not only does this risk diluting iconic franchises, but also threatens to alienate the audience that helped Disney achieve its success in the first place.
Innovation to Limitation:
From its early days, during the Golden and Renaissance eras of Disney, the company has set itself apart from competition with influential films like Snow White, Beauty and the Beast, and Mulan. Each era following has showcased significant shifts in its ability to introduce new animation styles and tell compelling stories, a testament to Walt Disney’s vision. However in recent years, Disney has entered a new phase referred to as the Revival Era. While this time period has seen some successful original films like Zootopia and Frozen, it has also seen positively received original productions like Soul and Luca which underperformed in the box office. Both these films were first released on Disney+ and then re-released in theaters post pandemic, contributing to their limited financial success. While they were well-received by audiences and critics, they brought in less revenue on account of audiences already having seen the films on streaming platforms. For instance, Soul earned an estimated $946 154 domestically and Luca made $1.3 million, both modest figures when compared to other theatrical releases. This has likely influenced Disney’ creative direction, encouraging them to be more strategic about the stories they pursue. They may be prioritizing films that have strong theatrical appeal and potential for good performance on streaming services, rather than relying on originality which holds the risk of short-lived engagement and limited rewatch value.
Perhaps that is why in recent years there has been an increase in live action remakes, spin-offs and sequels of beloved classics like Aladdin, Lion King and Snow White. While some were popular among viewers, Disney has been heavily criticized for relying on nostalgia rather than creative new ideas to bring in box office success. This trend is especially evident in the backlash surrounding the live-action remake of Snow White, starring Rachel Zegler. A CBC critic strongly criticized the approach, stating, “I believe the virus of live-action Disney remakes is, at best, lazy. At worst, they're evil.” This commentary echoes the growing frustration the masses feel on Disney’s reliance on past successes.
Overload Effect
The overload effect refers to the phenomenon where an overwhelming amount of information can lead to confusion or fatigue, and while not unique to Disney, its implications are becoming evident. In the case of the Star Wars franchise under Disney, the overload effect has become apparent with the addition of more than five movies and 20 seasons of TV shows to the existing universe since 2012. The constant release of content has made the creation of a cohesive universe challenging, with mixed reviews. Audience reactions have been positive for shows like The Mandalorian and Andor, and negative for productions like Obi-Wan Kenobi with many critics commenting that it felt unnecessary or poorly executed. Most of the negative feedback has focused on subpar CGI, sets and costumes that appear low-budget, and inconsistencies in the writing, particularly during scenes between Obi-Wan and Darth Vader. These issues were a result of broader production challenges, including the previous box office failure of Solo, several script rewrites, changes in showrunners and pandemic-related delays. In ways there’s a similarity between Disney’s content strategy for Star Wars and the one it employs for the Marvel Cinematic Universe (MCU). Rapid content production challenges the studio’s ability to maintain a consistent narrative, leading to continuity errors, inconsistent character arcs and less impactful storytelling. Take for example the newest addition to the Star Wars franchise, Ahsoka. Fans are divided with one fan stating, “Disney did it for money, first and foremost… Episode 7 was a copy and paste of episode 4. You can write most of the main plot points down on a piece of paper and it would read the same.” While Disney’s ambitions to build expansive universes are clear, the challenge now lies in finding a balance that will avoid overwhelming, and ultimately losing, its audience.
This growing divide in audience opinion is not just a result of a few disgruntled fans, but is also reflected in box office numbers and ratings. Across its three seasons, The Mandalorian has an average Rotten Tomatoes score of 90% and IMDB rating of 8.6/10. In contrast, The Rise of Skywalker has a significantly Rotten Tomatoes score of 51% and IMDB rating of 6.4/10. This stark difference is a direct result of The Rise of Skywalker’s reliance on nostalgia evident in the recreation of iconic moments from the original trilogy, reuse of classic lines and themes, and flood of cameos. Furthermore, many of the plot lines created in the preceding film, The Last Jedi are ignored in favour of safer storytelling choices like the resurrection of Emperor Palpatine, a villain seen in the original trilogy, with poor justification. This tendency to prioritize fan service, detracts from the potential of the Star Wars universe, hurting fan interest. Moving forward it is essential for Disney to consider how it can continue to evolve the franchise without hurting the quality of the content it is delivering.
Future of Diminished Returns
Yet another case similar to Star Wars is the Transformers franchise which has seen a decline in both popularity and profits. The Hasbro funded saga paints the perfect picture of what a future might look like if Disney continues to push unoriginal stories and characters onto its viewers. Initially a massive commercial success, Transformers soon became a victim of audience fatigue after relying too much on the same formula, releasing film after film based on similar plots and characters. Dying viewer interest became clear in its box office performance over time, with steadily decreasing returns.
Image from Screen Rant
The biggest drop in revenue can be seen in the release of Transformers: The Last Knight, which on an estimated budget of $217 million made $605 million. This is a steep decrease when compared to the fact that the previous film, Transformers: Age of Extinction, made $1.104 billion on a comparable budget. Critic and audience reviews reflected this drop, with many reviews stating that while some interesting plot points were set up, ultimately the film fell back on the tried and true action sequences that “don’t land as well as they used to.” Transformers: The Last Knight, hit an all-time low on Rotten Tomatoes, scoring just 16%. To give the franchise some credit, they did make an attempt to innovate within the realm of their world, with the release of films such as Bumblebee and Transformers One, the IP’s first animated feature in decades. While these films did not perform remarkably well in the box office, they were fan favourites and struggled as a result of franchise fatigue stemming from a decade of Michael Bay’s over-the-top action-packed style. Critics believe that it was difficult for the studio to shift audience expectations with just one film, translating into less interest despite a new take on the franchise. This is exemplified by the fact that Bumblebee had a Rotten Tomatoes score of 91%, indicating that critics responded positively even though audiences were slower to embrace the change. However, much like Disney, the franchise ultimately prioritizes financial performance, making it unlikely future installments will continue exploring innovative storylines until there are strong box office returns. The Transformers franchise serves as a cautionary tale; when studios prioritize familiarity over fresh storytelling, it’s only a matter of time before audiences tune out. Disney with its stream of sequels and reboots, risks falling into the same trap, not only losing out on profits but also risking declining audience loyalty and market positioning.
Broken Flywheel
Disney’s reliance on nostalgia and recycled content hasn’t just impacted its entertainment division, but it has also disrupted the synergy that once fueled growth across its other business segments, creating a broken flywheel. For decades, Disney’s business model thrived on the flywheel principle, where success in one area—like entertainment—would spark demand in others, such as consumer products, theme parks, and media networks. However, with the recent shift towards reboots, remakes, and sequels, Disney has seen a drop in excitement surrounding its new releases, causing this once-powerful flywheel to falter.
While Disney’s strategy of recycling beloved classics like The Lion King and Aladdin has brought in profits, it hasn’t sparked the same level of engagement or enthusiasm that their original stories once did. These live-action remakes, though visually impressive, failed to ignite the kind of fan fervor that leads to massive merchandise sales or theme park expansions. For instance, when films like Frozen or Toy Story first hit theaters, they generated widespread excitement that rippled across consumer products, from toys to clothing. In contrast, the remakes haven’t had the same lasting impact, with merchandise sales stagnating as audiences already own similar products from previous versions of the same stories.
The strain on the synergy between Disney’s entertainment and consumer products segments is evident in the numbers. Despite a significant increase in content spend, particularly on these rehashed stories, the revenue from consumer products has remained flat. The diminished demand for merchandise tied to these retold narratives points to a larger issue: the repetitive content has made it harder to sustain the flywheel effect that once drove Disney’s growth across all of its divisions. This broken synergy poses a significant challenge to the company’s long-term strategy, as the once-reliable interplay between divisions weakens with each unoriginal release.
Restoring the Magic
To reclaim its position as the leader in innovation and storytelling, Disney must undergo significant changes. First, the company needs to shift away from the safety of remakes and sequels and refocus on developing original content that resonates with both longtime fans and newer generations. By investing in fresh ideas, Disney has the opportunity to create the next wave of iconic stories that will not only captivate audiences but also reinvigorate excitement across all of its business segments. At the same time, Disney should conduct a comprehensive review of its creative processes to identify and address any internal bottlenecks. By fostering greater collaboration between its animation, live-action, and Disney+ teams, or empowering emerging creative voices, the company can reawaken the innovative spirit that once set it apart. This reimagining of how stories are developed could help Disney overcome its recent struggles, particularly in its animated division. The company’s animated films, once guaranteed box office hits, have been experiencing mixed results. Disney should take a closer look at why these films are underperforming and consider experimenting with new animation styles, storytelling techniques, and a wider array of diverse, global characters to better connect with today’s audiences. This willingness to take risks is essential for reclaiming the magic that once defined its animated features.
Disney must also reconnect with its core identity. As Walt Disney famously said, “To this day, I don’t believe in sequels. I can’t follow popular cycles. I have to move on to new things—there are many new worlds to conquer” (1966 Letter to Shareholders). The studio needs to return to the essence of what made it a beloved brand in the first place: the ability to dream big and create timeless, imaginative stories. By focusing on delivering high-quality, original content, rather than relying on past successes, Disney can preserve the magic and inspire audiences once again. To sustain its legacy, the company must push beyond what’s been done and challenge itself to dream further.
