Ron DeSantis Effect? Disney Pulls Back On Marvel, Star Wars Content: 'Spending Less...Making Less'

On Thursday, Bob Iger, CEO of Walt Disney Co DIS, announced a significant reduction in the production of Marvel Studios and Lucasfilm franchises, as part of the company’s cost containment initiative.

What Happened: Disney is pulling back on its production of Marvel and Star Wars content, aiming to cut costs and refocus its efforts, CNBC reports. This decision comes amidst a period of underwhelming box office performances from the company’s recent films.

This move is part of a broader reorganization plan that Disney rolled out earlier this year, which included a $5.5 billion cost-cutting initiative. A significant portion of these cuts, $3 billion, will be made from content excluding sports.

Iger emphasized that many of these decisions were made to bolster Disney’s flagship streaming service, Disney+, and attract more customers. "You pull back not just to focus, but also as part of our cost containment initiative. Spending less on what we make, and making less," Iger mentioned.

Disney’s recent films, particularly those from Marvel, have not performed as expected at the box office. For instance, “Ant-Man and the Wasp: Quantumania,” the 31st film in the Marvel Cinematic Universe, saw the sharpest decline in ticket sales from its opening weekend to the second weekend in franchise history. On the other hand, Marvel’s “Guardians of the Galaxy Vol. 3” has fared much better, grossing more than $800 million globally.

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Why It Matters: This decision comes amidst a backdrop of ongoing tensions between Disney and Florida Governor Ron DeSantis.

Disney has been shifting its focus from Florida to California due to a feud with DeSantis over the “Don’t Say Gay” law. This law forbids classroom discussions of gender identity and sexual orientation from kindergarten through third grade. Disney’s opposition to this law has led to a lawsuit against the governor and a shift in the company’s expansion plans.

Disney’s recent box office struggles are also a significant factor in this decision. Disney’s box office revenues have been disappointing in 2023, with several films underperforming compared to previous years.

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