Disney CEO Bob Iger has addressed the company's recent struggles and the future direction concerning sequels for its biggest franchises. Despite a mandate for "quality over quantity," Disney faces issues due to underperforming tentpoles like "Indiana Jones and the Dial of Destiny" and "The Marvels." Iger conceded that while sequels must be of good quality and have a compelling story, Disney may have produced too many. This statement comes amidst Disney's decision to develop more sequels for "Toy Story," "Frozen," and "Zootopia" following box office setbacks. With Marvel slowing down in 2024 and other major franchises like "Star Wars" and "Avatar" taking time to perfect their next releases, Disney seems to lean on its proven hits to improve financial results.

Why is Disney focusing on creating sequels for its established franchises?

Disney is focusing on sequels to established franchises to mitigate financial risks associated with recent box office underperformances. Proven hits like "Toy Story," "Frozen," and "Zootopia" are considered less risky investments, as they have historic fan bases and a track record of success, which can help stabilize the company's revenue stream during turbulent times.