Why Disney isn't taking big swings anymore

• Disney's biggest box-office hits in the last year were all either sequels or reboots.
• CEO Bob Iger said at Disney's annual shareholder meeting that more of the same is coming in 2025.
• There's a simple reason Disney isn't taking big swings: audiences like familiarity.

Disney's content strategy can be summed up in seven simple words: If it ain't broke, don't fix it.

After a string of creative misfires at the box office during former CEO Bob Chapek's brief tenure, the House of Mouse has regained its mojo by playing the hits.

All of Disney's most successful movies last year were sequels or reboots, as CEO Bob Iger said Thursday at Disney's annual shareholder meeting.

The company produced each of the three highest-grossing movies of 2024: "Inside Out 2," "Deadpool & Wolverine," and "Moana 2." Audiences made those installments of familiar films billion-dollar blockbusters. And "Mufasa," based on 1994's "The Lion King," fared fairly well.

Iger then listed some of the Disney movies he's most excited about this year: "Snow White," a remake of the 1937 classic; "The Fantastic Four: First Steps," which follows earlier Fantastic Four films from 20th Century Studios, "Zootopia 2," the third "Avatar" movie, and a live-action version of 2002's "Lilo & Stitch."

It's not all old hat from Disney, as Iger remarked. Marvel has "Thunderbolts*" coming in May, and Pixar is debuting an original film titled "Elio" in June.

But Disney fans and shareholders have taken note of this clear shift toward safer bets.

Safe over sorry

The first question for Iger during the shareholder meeting was: "What are you doing to prioritize the importance of creativity across the company?"

Iger's seemingly unscripted response was quite telling.

"Our creativity is, in fact, soaring," he said. He named nine titles, from "Avatar: Fire and Ash" to "Zootopia 2," meant to typify Disney's creative spirit. But only one of those films — the action thriller "The Amateur" — will be brand new to audiences.

There are several reasons for Disney's risk aversion, particularly at a moment when the company is feeling the pressure from Wall Street. Its stock has made little progress in the past decade, and the company must select Iger's successor in the next year or so.

Research indicates people crave familiar movies and shows. Sequels and reboots require little explanation, which helps them cut through a crowded and cluttered media landscape where everyone is siloed in their own algorithms. Even if audiences aren't fired up for new installments, they may be more likely to remember and talk about them, which can reduce marketing costs.

Familiar films have a higher floor. While their upside might not be the same as a new breakout hit, they're also far less likely to be a financial flop.

And considering the pressure that Iger and Disney are under, big gambles on fresh ideas can backfire — just ask Chapek about the quickly forgotten bomb "Strange World."

Audiences want comfort food — and Hollywood may pay

It's not just movies: Disney's original TV shows don't seem to be moving the needle much.

No Disney+ show made it onto Nielsen's top-10 ranking of streaming originals in 2024, LightShed Partners found. The streamer did have the chart-topping kids' show "Bluey," but it's licensed to Disney from the Australian Broadcasting Corp. What's startling is that "Bluey" made up 9% of time spent with the streamer last year, per LightShed.

Faced with this tough reality, lead LightShed media analyst Rich Greenfield floated a seemingly unthinkable idea earlier this month that could have Hollywood shaking in its shoes.

"The lack of traction in originals raises the question whether Disney should produce any meaningful original series for Disney+ or shift their focus to being a movie and TV rerun service (akin to the old Disney DVD vault)," Greenfield wrote.

Hollywood creatives and audiences may balk at that idea. But box office totals and viewership data are the ultimate truth serum, and familiarity is winning over originality.

It's hard to fault Disney for taking note.