Inside Out 2 is the latest offering from Pixar Animation, expanding on the story told in the original 2015 film. Set a few years after the events of Inside Out, the sequel follows Riley Andersen as she prepares to begin high school, where she worries she won't fit in. Audiences reunite with Riley's core cast of basic emotions, including Joy (Amy Poehler), Sadness (Phyllis Smith), Anger (Lewis Black), Fear (Tony Hale), and Disgust (Liza Lapira), who all try to help her navigate this difficult new era of her life. However, they are challenged by a series of new, more complex emotions, led by Anxiety (Maya Hawke), who tries to totally reimagine Riley's personality.

After only a short time in theaters, Inside Out 2 is already one of Pixar's highest-grossing movies of all time. The film is well on its way to profitability, raising an important question moving forward: how can Pixar (and, by extension, Disney), replicate the film's success? Not long ago, Disney and Pixar were synonymous with financial success, boasting multiple brands that were bonafide hits at the box office. In the last few years, however, this trend has reversed completely. Disney needs to change its strategy if it wants to remain on top of the moviemaking landscape. What should the House of Mouse learn from the rampant success of Inside Out 2?

Disney Needs To Change Its Strategy

Multiple Franchise Films And Original Disney Movies Flopped In 2023

Disney suffered several box office bombs in 2023, shaking the world's trust in the company as the most profitable studio in modern-day Hollywood. Strangely, many of Disney's biggest bombs of the last year were part of the studio's biggest brands and franchises. Indiana Jones and the Dial of Destiny, a legacy sequel to Harrison Ford's iconic adventure franchise, was unable to make back its massive budget. The Marvels, a team-up film set within the Marvel Cinematic Universe, became one of the biggest flops in the superhero genre. 2023 was littered with other disappointments as well, with films like the Haunted Mansion remake slinking out of theaters with little fanfare. The greatest insult of them all, however, was Wish. The animated movie was meant to be a celebration of Disney's 100th anniversary, tying together some of the company's most popular films of all time. Instead, the film flopped both financially and critically, losing the company over $100 million.

Even Pixar has been going through a tough time in recent years. The studio, which is owned by Disney, was once one of the most powerful brands in Hollywood. Often, audiences would turn out to theaters with little information about a new film, knowing solely that Pixar was known for making great children's films. However, Disney's ill-advised decision to temporarily push new Pixar releases to Disney+ didn't do the studio any favors. The brand suffered as a result, as audiences began to associate Pixar films with streaming releases. When Disney finally reversed its decision, Pixar suffered one of its biggest flops of all time in Lightyear, a film that was expected to be a massive hit. Disney and Pixar need to change their strategy or continue losing money on expensive projects. While it may not provide all the answers they need, Inside Out 2 is a great start to fixing Disney's problems.

Inside Out 2 Proves That Audiences Still Want—With A Catch

Recent Disney Sequels And Spinoffs Have Failed--Why Did Inside Out 2 Succeed?

Fans and critics love Inside Out 2, with the film earning positive reviews comparable to those of its predecessors. Even more exciting for Disney and Pixar, Inside Out 2 is likely to make more money than its predecessor by the end of its box office run. This negates the growing idea that audiences don't want sequels or spinoffs. Despite the failure of films like Dial of Destiny and Lightyear, strong franchises can still perform well under the right circumstances. But, what is the difference between Inside Out 2 and these other films?

A key for Disney moving forward is choosing to make sequels that fans want. No one was asking for a fifth Indiana Jones movie, but the studio greenlit the film in hopes of cashing out one last time. Lightyear, a spinoff to the Toy Story franchise, is only marginally connected to the fan-favorite films, telling its own story in a different continuity but starring the character of Buzz Lightyear. Neither of these films appealed to audiences, who were content with the respective franchises as they were. In an age of endless sequels, prequels, and spinoffs, audiences aren't getting tired of franchises but may be getting more selective with which ones they choose to follow. Especially with the streaming release windows of new movies getting shorter, viewers may choose to simply wait for most films to hit Disney+ rather than going to see them in the theaters. The best way to get audiences into theaters is to give them movies they want to see, not just an additional installment of a pre-existing franchise done out of obligation.

What Should Disney And Pixar's Strategy Be Moving Forward?

Pixar's New Strategy Is A Great Start--And Disney Should Take Note

With upcoming films like Toy Story 5 and Elio, Pixar has developed an admirable strategy for its future slate. The studio has vowed to release "one-and-a-half movies every year," or three movies every two years. As a part of this process, every other film will be a sequel or spinoff related to an existing franchise. The alternating films in between each franchise release will be entirely original stories. Furthermore, the sequels that are made will be under greater scrutiny to confirm that there is a story worth telling. This is an excellent strategy in this new age of filmmaking. Pixar will continue to explore new stories while developing its existing IP, giving audiences a good mix of films. Not every new release will be a hit, but the studio is at least diversifying its slate to give audiences both high-quality sequels and interesting new concepts.

After the failures of films like Wish and some other 2023 ventures, Disney can also learn from this strategy. The company has become dangerously uninterested in original stories. Even Wish was largely marketed using its connections to previous animated Disney movies. Audiences have come to associate the studio with live-action remakes, sequels, and cinematic universes. Disney can continue to make these films but must be more selective in which ones to make. CEO Bob Iger has been public about his plan to do exactly this, questioning the necessity to continue franchises like Ant-Man and Eternals. However, this is only the first step. Disney must begin cultivating new IP, giving audiences fresh stories that have the potential to become new franchises--or simply act as compelling one-off stories.

Inside Out 2 is an excellent example of the right way to handle a franchise--and could provide an important strategy for Disney and Pixar moving forward. In a shifting moviemaking landscape, Disney and its subsidiaries need to change focus or be left behind.