Disney's Big Announcements Confirm Why They Won't Stop Making Sequels

For many of us, our love of Disney started before we ever set foot into the parks. Instead, it was Disney movies that ignited that spark.

©Disney

And, while Disney is still a powerhouse in the entertainment world, the company seems to have shifted its focus to a particular type of movie: sequels. It’s no secret that Disney is obsessed with making sequels, and there’s a very good reason why that is. The more sequels Disney makes, the more money they make — and here’s why.

The Walt Disney Company recently held its first quarter earnings call for fiscal year 2026, and there was a major focus on the entertainment portion of the business. Disney reported its third-biggest year ever in 2025, and its ninth year as number one at the global box office. But, the movies that made that happen weren’t the first iteration of that IP.

Walt Disney Company Headquarters ©LA Times

Disney noted Avatar: Fire and Ash and Zootopia 2 as the two movies that helped it cross the multi-billion dollar threshold in 2025 — both sequels.

Even when talking about the future outlook of the movie aspect of the business, CEO Bob Iger mentioned upcoming sequels almost exclusively, with The Devil Wears Prada 2, Toy Story 5, Avengers: Doomsday, and the live-action remake of Moana set to hit theaters in 2026 and beyond. Even the Mandalorian and Grogu movie coming out isn’t exactly original, with The Mandalorian series on Disney+ already having a massive fanbase.

©Marvel Studios

Every big theatrical release mentioned in the earnings call is a sequel, and executives didn’t even mention its upcoming animated film, Hoppers, despite promotion elsewhere. Sequels not only drive ticket sales, but they also drive repeat watches of previous films — which seems to be a huge guarantee that Disney can keep subscriber churn down on Disney+. People tend to watch original films before sequels are released, which Disney noted in the recent call.

©Pixar

Disney noted the “lift” that Disney+ received ahead of the theatrical releases of Avatar: Fire and Ash and Zootopia 2, something that is expected to continue once the films are available on the streaming service.

‘Zootopia 2’

Sequels, live-action remakes, and reboots have been integral to Disney’s movie strategy in recent years, with Inside Out 2, Deadpool & Wolverine, and Moana 2 all being the biggest domestic box office hits of any movie in 2024.

Iger has previously mentioned how live-action remakes can bolster new technologies that help Disney’s classic stories “reach new generations of viewers.”

©Disney

It ultimately boils down to money and nostalgia. Many of the kids who grew up with classic Disney movies are now adults with their own kids, and they want to share their love for these movies and the Disney parks with them. That, in turn, brings in more money for Disney both at the box office and at the parks, by adding in more IP.

It seems as though Disney is operating under an “If it ain’t broke, don’t fix it” sort of mentality with sequels, especially given the upcoming slate of movies that are almost entirely that. We’ll have to wait and see how long this strategy works for the House of Mouse, but for now, don’t expect the sequel train to slow down anytime soon.

Walt Disney Company Headquarters in Burbank

We’ll be on the lookout for additional news about Disney sequels, movies, and beyond that you need to know about. In the meantime, make sure you stay tuned to the Disney Food Blog for the latest Disney updates and more!

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