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https://www.wsj.com/business/media/...liver-memorial-day-box-office-record-10606a1b

‘Lilo & Stitch,’ ‘Mission: Impossible’ Deliver Memorial Day Box-Office Record
Strong holiday weekend contributes to major comeback for Hollywood’s domestic ticket sales this year

by Ben Fritz
May 26, 2025 - 1:46 pm EDT

It was a blockbuster Memorial Day weekend for Hollywood, led by a little blue alien.

Disney’s remake of “Lilo & Stitch” topped the box office with an estimated $183 million in ticket sales from its opening Thursday night through Monday in the U.S. and Canada. “Mission: Impossible—The Final Reckoning” came in second place with a solid $77.5 million domestic debut for the eighth and potentially final entry in Paramount’s Tom Cruise action franchise.

All told, domestic ticket sales totaled $326.7 million for the holiday weekend, according to box-office tracker Comscore. The prior record, not accounting for inflation, was $314.3 million in 2013, when the No. 1 film was “Fast & Furious 6.”

Hollywood is coming off a disastrous first quarter filled with flops like the “Snow White” remake and “Mickey 17.” Domestic ticket sales were down 11.6% from last year as of the end of March, according to Box Office Mojo. Now they are up 22.3%, boosted by this weekend’s hits and last month’s “A Minecraft Movie.”

PG-rated films that appeal to parents, nostalgic childless adults, and kids are on a hot streak. “A Minecraft Movie,” this year’s No. 1 film, is also rated PG, as were four of last year’s top five movies.

Disney spent a little more than $100 million to make “Lilo & Stitch,” which it originally planned to release straight to the Disney+ streaming service. Now the remake is on track to gross close to or even more than $1 billion, making it hugely profitable.

The 2002 animated original wasn’t a big hit, but in the subsequent two decades, Stitch became a consumer products juggernaut for Disney and permeated pop culture thanks to internet streaming and social-media memes. The studio is already planning a sequel.

“The Final Reckoning’s” domestic ticket sales were in line with the previous opening weekend record for the franchise: 2018’s “Mission: Impossible—Fallout.” The new movie grossed $127 million internationally. Previous “Mission” movies have made significantly more money overseas than in the U.S.

Paramount is aiming for a big performance after several shutdowns during production related to Covid-19 and labor strikes sent the budget near $400 million. Cruise and his longtime filmmaking partner Christopher McQuarrie have strongly hinted—though not definitely said—that this will be their last “Mission” movie, leaving the future of the series up in the air.

Write to Ben Fritz at ben.fritz@wsj.com
 

https://www.nytimes.com/2025/06/02/business/media/lilo-and-stitch-ticket-sales-disney.html

How ‘Lilo & Stitch’ Became One of the Most Profitable Movies in Years

The film was originally aimed for Disney+. But it was rerouted to a theatrical release and is on a pace for at least $950 million in ticket sales.

Disney’s live-action “Lilo & Stitch” remake has become one of the biggest movie windfalls in years, not just at Disney but in all of Hollywood.

By Brooks Barnes

Reporting from Los Angeles
June 2, 2025 - Updated 3:42 p.m. EDT

Call it Stitch’s vindication.

For 23 years, the rowdy blue agent of chaos lived as a second-class citizen at Disney. The animated “Lilo & Stitch,” released in 2002, was made in near secret, partly because the character and art style didn’t fit the Disney mold. One poster for the movie depicted classic Disney characters like Pinocchio, Jasmine and Belle recoiling from Stitch in horror.

Ticket sales were so-so. Stitch got a couple of direct-to-video sequels and a TV cartoon in the 2000s. A modest Disney World ride opened in 2004 and closed in 2018, leaving the snaggletoothed character to scamper along as a consumer products property.

And now? Almost overnight, Stitch has become one of the biggest movie windfalls in years, not just at Disney but in all of Hollywood.

Disney’s live-action “Lilo & Stitch” remake — made for $100 million and initially planned as a straight-to-streaming release — has collected $610 million worldwide after just 10 days in theaters. The PG movie, which cost at least $75 million to market, should sell about $950 million in tickets by the end of its run, box office analysts said on Saturday. Depending on the response to “Lilo & Stitch” in Japan, where it opens on Friday, there may even be a path to $1 billion.

That means Disney, which splits tickets sales with theaters, will make $300 million or more in profit just from the box office.

The astounding turnout further validates a U-turn that Disney made in 2023, not long after Robert A. Iger came out of retirement to retake Disney’s helm. He cut back on streaming originals and reprioritized theatrical releases. In November, “Moana 2,” assembled from what had been planned as a Disney+ television show, collected $1.1 billion in theaters. “Lilo & Stitch” was similarly rerouted.

“Going theatrical, getting that footprint across the entire world, lifts everything — streaming, consumer products, the theme parks,” Alan Bergman, co-chairman of Disney Entertainment, said by phone on Friday. “It’s harder to do that when you start on a service.”

Nine months ago, when Disney scheduled “Lilo & Stitch” for release in theaters on Memorial Day weekend, Mr. Bergman was cautiously optimistic about its chances. Even with no new content, Disney’s consumer products group had managed to expand sales of Stitch merchandise to $2.6 billion in 2024 from $200 million in 2019. Young adults clearly had nostalgia for the property.

Perhaps the sunny “Lilo & Stitch” could succeed as counterprogramming to Tom Cruise’s serious “Mission: Impossible — The Final Reckoning,” also scheduled for Memorial Day weekend. Maybe — maybe — Stitch could even beat Mr. Cruise. Such an outcome, albeit unlikely, would be a nice bit of payback; Mr. Cruise’s “Minority Report” outdid the original “Lilo & Stitch” when they opened on the same weekend in 2002.

In the end, the face-off wasn’t even close. “Lilo & Stitch” took in $183 million over the holiday weekend in the United States and Canada. “Mission: Impossible,” which cost $400 million to make, not including marketing, took in $79 million.

“Disney did everything right on this,” said Kevin Goetz, chief executive of the film research company Screen Engine/ASI. “They made a movie that people love. They made it for the right price. They picked a perfect release date. The marketing, publicity and social campaigns. I could go on and on.”

Disney celebrated last week with champagne toasts at its headquarters in Burbank, Calif. Mr. Bergman’s office was decorated with Stitch balloons. David Greenbaum, president of Disney Live Action, donned a blue lei.

“Lilo & Stitch” did so well that it served as a clap back to Ted Sarandos, the Netflix boss, who recently called theatrical movies an “outdated” concept. Pointing to the then-struggling box office — Disney’s expensive “Snow White” had just flopped — Mr. Sarandos had said: “What does that say? What is the consumer trying to tell us? That they’d like to watch movies at home, thank you.”

All over Hollywood, film producers and studio executives started to do back-of-the-envelope math to guesstimate “Lilo & Stitch” profitability.

Consider: In the last 15 years, only three live-action movies that cost $100 million or less, excluding marketing, have reached $950 million in ticket sales, according to IMDBpro, a film industry database. They are “Oppenheimer” (Universal Pictures), “Joker” (Warner Bros.) and “Jumanji: Welcome to the Jungle” (Sony Pictures Entertainment).

All those movies, however, were built in ways that reduced the profit that flowed to their studio makers. Christopher Nolan, who wrote, directed and produced “Oppenheimer,” received a cut of ticket sales, for instance. Warner Bros. offset “Joker” risk by bringing in a financing partner, Village Roadshow, which received a share of the riches.

With “Lilo & Stitch,” Disney does not have to pay filmmaker or star bonuses. Nor does Disney have a financing partner to pay.

In addition to ticket sales, analysts expect “Lilo & Stitch” to make tens of millions of dollars in profit from digital rentals and sales (known as premium video on demand). While hard to quantify, “Lilo & Stitch” will create Disney+ value by helping with subscriptions and ad sales.

Analysts estimate that sales of related consumer products will add up to $400 million in profit annually.

And don’t forget the inevitable sequels.

“There’s certainly a lot of room to tell more stories,” Mr. Bergman said.

The new “Lilo & Stitch” got started in 2018, when a team of producers approached Disney with the idea. At the time, Disney was focused on turning animated classics like “The Little Mermaid” and “Aladdin” into live-action movies.

“The response was, ‘Oh, yeah, Stitch — no one’s asked about this title,” said Jonathan Eirich, one of the producers. (Another “Lilo & Stitch” producer, Dan Lin, became Netflix’s movie chief in April 2024.)

The movie encountered its share of troubles as it trundled along. (Notably, the 2023 writers’ and actors’ strikes delayed production.) It wasn’t until February of this year, Mr. Eirich said, that “Lilo & Stitch” started to look like a potential blockbuster.

The turning point was a Super Bowl stunt, orchestrated by Disney marketers, that found Stitch seeming to break onto the field shortly after the coin toss and evade capture by stadium staff. In the months after, Disney continued to market the film by emphasizing Stitch’s naughtiness; he popped out of popcorn buckets and turned up in shopping malls driving a pink car with the license plate “2 FAST.”

As bigger-than-expected crowds poured into theaters on opening day, Disney increased its internal estimates for the weekend haul. Mr. Eirich said he had asked the studio to keep the new math from leaking to the Hollywood community.

“‘Don’t jinx it! Don’t put the bigger estimates out there,’” he said he had told Disney. “I didn’t want any headlines saying we fell short.”

He didn’t have to worry.

Brooks Barnes covers all things Hollywood. He joined The Times in 2007 and previously worked at The Wall Street Journal.
 
https://www.latimes.com/entertainme...2025-06-02/disney-begins-new-round-of-layoffs

Disney to cut hundreds of employees in latest round of layoffs

By Meg James - Senior Entertainment Writer
June 2, 2025 Updated 2:16 PM PDT

Walt Disney Co. launched another deep round of layoffs on Monday, notifying several hundred Disney employees in the U.S. and abroad that their jobs were being eliminated amid an increasingly difficult economic environment for traditional television.

People close to the Burbank entertainment giant confirmed the cuts, which are hitting film and television marketing teams, television publicity, casting and development as well as corporate financial operations.

The move comes just three months after the company axed 200 workers, including at ABC News in New York and Disney-owned entertainment networks. At the time, the division said it was trimming its staff by 6% amid shrinking TV ratings and revenue.

Disney declined to specify how many workers were losing their jobs. The cutbacks — the fourth round of layoffs in less than a year — come after Disney Chief Executive Bob Iger acknowledged to Wall Street that Disney had been pumping out too many shows and movies to compete against Netflix.

The programming buildup accelerated as the company prepared to launch Disney+ in late 2019, and it bulked up its staff to handle the more robust pipeline.

But the company has since retrenched, recognizing the need to focus on creating high-quality originals that meet Disney’s once lofty standards.

Disney has faced significant budget pressures after promising investors that its direct-to-consumer services — Disney+, Hulu and ESPN+ — would achieve profitability last year. The company lost billions of dollars over several years in its strategic shift to streaming, but it reached its goal to make money on streaming last fall.

Still, streaming subscribers can be fickle, creating a daunting new reality for the company that could long count on cable TV subscriptions as one of its most reliable economic pillars. Cord-cutting has taken a heavy toll.

The entertainment giant — one of Southern California’s largest private sector employers — has eliminated more than 7,000 jobs since 2023.

The traditional TV and film units felt the brunt of the downsizing during the last year. In July, the company slashed about 140 workers, primarily in its Disney entertainment unit. The company’s TV stations also lost staff members and ABC News shed about 40 employees last October.

ABC News largely escaped this week’s cuts, according to one knowledgeable person who was not authorized to discuss the internal moves.

ABC News still boasts healthy audiences for its newscasts, but the ABC television network and Disney-owned entertainment channels have seen dramatic viewer defections as consumers switch to streaming services, including Netflix, Paramount+ and Disney+.

ABC’s prime-time schedule has lost considerable steam. For the just-ended broadcast television season, ABC mustered only three shows in Nielsen’s top 20 rankings.

“Monday Night Football on ABC” ranked seventh by averaging more than 10 million viewers, “Saturday Night Football” ranked 18th with 7.4 million viewers and freshman drama “High Potential” made the cut at 20th with an average audience of 7.1 million, according to Nielsen.

Monday’s eliminations come three weeks after Disney presented its fall lineup to advertisers, leaning heavily on its sports stars including Peyton and Eli Manning rather than actors from its entertainment programming.

ESPN was spared the ax as the sports unit is preparing for its high-stakes launch this fall of a stand-alone ESPN streaming service, the knowledgeable person said.

The move comes amid a strong run for Disney’s film studio, which has celebrated blockbuster box office results from its live-action “Lilo & Stitch,” which has earned $610 million in ticket sales globally, according to Box Office Mojo.

A month ago, Disney issued strong fiscal second-quarter earnings. The company reported $23.6 billion in revenue for the three months that ended March 29, a 7% increase compared with the same quarter a year earlier. Earnings before taxes totaled $3.1 billion, up $2.4 billion from last year.

Hollywood trade site Deadline first reported the news of the latest Disney cuts.

The landscape has been increasingly challenging for traditional companies. In addition to Disney, Warner Bros. Discovery, Paramount Global and even such tech companies as Amazon and Apple have fired workers.

In late May, NBCUniversal cut 54 jobs in Los Angeles, according to state employment records. Six Flags Entertainment Corp. laid off 140 workers.

Disney shares closed down 9 cents to $112.95.
 





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