Film sequels are falling flat Film sequels are falling flat

Film sequels are falling flat

Why film studios keep betting on franchises

Moviegoers will discover a wealth of acquainted franchises on the large display screen this 12 months. It will not be sufficient to save lots of the field workplace.

New entrants from in style movie collection dominate the film slate within the subsequent 12 months. The 2026 schedule options releases from Star Wars, Marvel, DC Comics, Toy Story, Tremendous Mario Bros., Starvation Video games, Scream, Scary Film, Minions, Dune and Jumanji.

Mental property like these established franchises has lengthy been an necessary a part of Hollywood, however they’re more and more very important in 2026 because the theatrical trade seeks to interrupt the $10 billion mark on the home field workplace for the primary time because the pandemic.

However some big-name installments aren’t drawing the crowds they used to, and trade insiders fear the $10 billion benchmark could also be past attain this 12 months for a post-pandemic trade that has been rocked by manufacturing shutdowns, the consolidation of main studios and a shift in client viewing towards streaming.

“The reliance on franchises has been a bit of trickier the previous couple of years,” mentioned Alicia Reese, senior vice chairman of fairness analysis for Wedbush. “Sure, there is a degree of certainty … but it surely’s not a house run. It is by no means going to be a house run from right here on out, as a result of individuals are pickier than they was once. They know what’s coming. Phrase of mouth means greater than ever.”

Since 2010, the highest 10 highest-grossing movies domestically have predominantly been franchise movies, based on information from Comscore. Throughout that point, between eight and 10 of the movies launched annually had been a sequel, prequel or remake. The one outlier was 2020, when seven of the highest 10 movies had been franchise primarily based, as a result of variety of movies that had been delayed throughout Covid shutdowns.

And, after all, plenty of the unique titles that broke into the highest 10 have change into franchises themselves within the final 20 years. Take a look at “Avatar,” “Frozen,” “Zootopia,” “Inside Out,” “Secret Lifetime of Pets” and “Ted.”

“Studios clearly really feel that viewers comfortability — with going to see a film the place they already, in some sense, know what they’re getting earlier than they stroll into the auditorium — is a guess price making,” mentioned Paul Dergarabedian, head of market tendencies at Comscore.

As studios lean into the security of a built-in viewers, box-office gross sales change into extra reliant on the success of those franchise movies.

Earlier than the pandemic, throughout the span of 2010 to 2019, prime 10 movies represented a median of 30% of the entire home field workplace yearly. Outpacing the group was the 2019 calendar the place these movies accounted for practically 40% of the annual haul. All 10 movies that 12 months had been IP-driven, and 9 of them generated greater than $1 billion globally.

Submit-pandemic, the typical proportion that the highest 10 movies symbolize of the entire annual home field workplace is 44%.

“I keep in mind having this dialog the late ’90s,” mentioned Eric Handler, managing director and senior analysis analyst at Roth Capital Companions. “The field workplace has for the final a number of many years been franchise-driven. That is simply the way in which it’s. Why? It is as a result of when there’s familiarity with content material, there is a better likelihood that individuals will present up as a result of there’s an affinity in direction of a specific franchise and it is already recognized.”

Now, Hollywood is dealing with the cruel actuality of what occurs when franchises fall flat.

Nice expectations

Two of probably the most anticipated movies to hit theaters final 12 months — Common’s “Depraved: For Good” and Disney’s “Avatar: Fireplace and Ash” — underperformed expectations.

The primary “Depraved” film, launched in 2024, tallied $475 million on the domestical field workplace and a bit of greater than $750 million globally throughout its run in theaters. A 12 months later, the second a part of the duology collected just below $350 million from the U.S. and Canada and about $525 million globally.

Field-office analysts attributed the smaller ticket gross sales to a drop in high quality between the primary and second installments. “Depraved” generated an 88% “Recent” ranking on evaluation aggregator Rotten Tomatoes, whereas “Depraved: For Good” scored a 66% ranking.

“Avatar: Fireplace and Ash” had even larger footwear to fill. James Cameron’s breakout hit “Avatar,” launched in 2009, snared $785.2 million domestically and $2.1 billion internationally. It stays the highest-grossing movie of all time on the field workplace with $2.9 billion in ticket gross sales.

Greater than a decade later, “Avatar: The Method of Water” hit theaters, producing $688.8 million domestically and $1.6 billion internationally, bringing its complete haul to $2.3 billion.

However when “Fireplace and Ash” hit theaters in December, client demand wasn’t practically as excessive and the attract of Cameron’s groundbreaking filming strategies had worn off. “Fireplace and Ash,” which continues to be taking part in in theaters, has tallied simply $378.5 million domestically and handed $1 billion internationally as of Sunday.

Wedbush’s Reese mentioned a part of the issue will be attempting to mine an excessive amount of from anybody franchise.

Take, for instance, Disney’s Marvel Cinematic Universe. The movie franchise has been a box-office darling for practically 20 years, however struggled within the wake of the climactic “Avengers: Endgame” in 2019 to supply constant high quality sequels. On the similar time, it flooded the streaming market with a dozen new tv collection.

“In the event you attempt to stretch it too skinny and you do not put the identical degree of consideration to particulars then it isn’t going to work,” Reese mentioned.

There’s additionally danger in attempting to broaden a distinct segment curiosity into a world success, she mentioned. Do filmmakers keep near the unique IP and play to its base, or do they shoot for a wider viewers and a much bigger splash?

Sandworms emerge on the desert planet Arrakis in Denis Villeneuve’s “Dune: Half Two.”

Warner Bros. | Legendary Leisure

Reese famous Warner Bros.’ new Dune franchise, starring Timothée Chalamet and directed by Denis Villeneuve, is an effective instance of a collection that is threaded the needle, touchdown with followers who already cherished the books on the similar time that it drew in new crowds.

“If it is a good movie, it’s going to service that core viewers and it would usher in some newbies and have that broader attraction,” Reese mentioned. “However, if you happen to attempt to get that broad attraction and you are not servicing your core followers, they may flip in opposition to you. That may spell big issues, as a result of if they do not just like the movie, everybody else goes to seek out out about it, they usually will not go both, proper?”

Greater than a movie

Since Covid shutdowns all however decimated the film trade in early 2020, the variety of movies being produced for theatrical launch has declined.

As studios produce fewer movies, they’re counting much more on what they understand because the protected bets of tried and true IP.

In 2024, 94 motion pictures had been launched in additional than 2,000 areas, a 20% decline from the 120 broad releases in 2019. That drop was mirrored within the box-office outcomes, which had been down about 23% from the $11.4 billion tallied in 2019.

In 2025, there have been 112 broad launched movies, about 6.6% down from 2019 ranges, however the field workplace nonetheless lagged greater than 20%.

Hollywood analysts level to a number of elements to elucidate why the home field workplace continues to pull.

There’s a lack of theatrical content material, significantly movies which are within the mid-budget vary — $15 million to $90 million. Most of those movies, which are usually dramas, comedies, romantic comedies and thrillers, have transitioned to streaming, as they’re cheaper to make and assist pad digital libraries with new content material.

On the similar time, shoppers have change into pickier about what they watch and the house leisure area has superior in a approach that in-home know-how makes staying on the sofa simpler.

Due to this, studios and theater homeowners have began “eventizing” movie releases — selling the movies as must-see in premium giant format theaters like IMAX, Dolby Cinema, Display X or 4DX; promoting specialty merchandise like popcorn buckets and drink sippers in addition to limited-time meals choices; and internet hosting occasions related to a movie launch like friendship bracelet making for the Taylor Swift live performance movie launch.

Usually, the movies which are best to advertise on this approach are these which are primarily based on recognized franchises.

Final 12 months, when “Downton Abbey: The Grand Finale” hit theaters, Alamo Drafthouse hosted fancy costume screenings, encouraging moviegoers to reach in period-appropriate apparel. The occasion included a fancy dress contest and themed drinks and meals. The theater chain has hosted related occasions for screenings of James Bond and Star Wars movies and can host one for the upcoming “Wuthering Heights” adaptation.

And these franchises aren’t simply exhibiting up in film theaters. Many main movie studios even have their very own client product and expertise divisions, which depend on theatrical content material to not solely promote merchandise however gas theme park designs, dwell occasions and even cruise ships.

Followers of franchises are hungry for merchandise that remember and exhibit their favourite characters or film moments. This will manifest within the type of attire, bedding, kitchen utensils and bumper stickers all the way in which to collectibles, luxurious watches, electronics and seasonal merchandise like ornaments.

Disney has constructed theme park lands, rides and cruise ship parts primarily based on Star Wars, Marvel, The Muppets, Pixar movies like Vehicles, The Incredibles, Toy Story and Monsters Inc., in addition to Disney Animation properties like Frozen, Zootopia, Moana, The Lion King and the Little Mermaid.

New Toy Story Land at Disney’s Hollywood Studio

Supply: Courtesy Go to Orlando

Comcast’s Common, too, has decked out its theme parks with its personal properties — Jurassic Park, Minions, Secret Lifetime of Pets, Darkish Universe and Methods to Practice Your Dragon — alongside licensed franchises just like the Wizarding World of Harry Potter and Nintendo.

And beloved and well-tended-to franchises have endurance: The Star Wars franchise hasn’t notched a brand new theatrical launch since 2019, but it is remained one of many prime movie franchises within the cultural zeitgeist, based on Fandom, the world’s largest platform for leisure followers.

Disclosure: CNBC and Rotten Tomatoes are divisions of Versant Media.

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