Disney’s Live-Action Remake of ‘The Little Mermaid’ May Have Lost Money at the Box Office — But There’s More to the Story
Despite grossing $569.6 million at the global box office, last year’s live-action remake of The Little Mermaid was undeniably a disappointment for Disney.
An adaptation of one of Disney’s most beloved animated films, the live-action Little Mermaid, failed to reach the box office heights of its Disney Renaissance live-action counterparts Beauty and the Beast, Aladdin, and The Lion King, all of which managed to gross over $1 billion.
Image: Disney
Starring Halle Bailey in the titular role, The Little Mermaid received decent reviews from critics and fans alike but failed to deliver the kind of box office gross that Disney was surely hoping for.
‘The Little Mermaid’ Budget Was Higher Than Previously Reported
While $569 million would be an impressive haul for most movies (it was the 10th-highest total of any 2023 film), a new report from Forbes has revealed that Disney spent almost $300 million making The Little Mermaid.
Image: Disney
Technically speaking, the film’s budget “exceeded the production budget” and reached $355.1 million. Though film budgets are traditionally kept under wraps, Disney received an Audio-Visual Expenditure Credit (AVEC) from the United Kingdom for filming at least 10% of The Little Mermaid in the United Kingdom.
To receive the tax break, Disney had to file publicly available financial statements that included the total cost of producing the film.
According to the Forbes report, these documents reveal that Disney spent $355.1 million making The Little Mermaid. That number is substantially higher than the $250 million that was reported by Deadline last year.
(L-R): Jonah Hauer-King as Prince Eric and Halle Bailey as Ariel in Disney’s live-action THE LITTLE MERMAID. Photo courtesy of Disney. © 2023 Disney Enterprises, Inc. All Rights Reserved.
However, after the UK tax break is factored in, The Little Mermaid‘s budget is reduced to $289.9 million. Additionally, it should be noted that the film was produced during the COVID-19 pandemic, which raised costs. Still, $289 million is an astounding amount for a film that failed to cross $600 million at the box office.
The Film May Have Lost Money
While an inexact science, it is generally assumed that studios take in half of the total films made in theaters. Applying that calculation to The Little Mermaid, Disney will have made roughly $285 million from the film’s box office run, for a net loss of $4.9 million.
Image: Disney
Though the Forbes article used the 50% equation to surmise that The Little Mermaid lost money, that may not be correct. Though we will likely never know the exact numbers, Disney (and other studios) traditionally receive a higher percentage of a film’s first weekend intake and domestic totals.
As The Little Mermaid grossed $95.6 million in its opening weekend and took in $298 million domestically, Disney likely did better than a 50/50 split. If that was the case, the film would have at least broken even.
Image: Disney
Making matters worse, the $289.9 million budget does not take into account Disney’s marketing costs. Those were estimated at $140 million.
The Box Office Numbers Do Not Tell the Full Story
While it is clear that The Little Mermaid lost money for Disney at the box office, that does not tell the whole story. After a film completes its theatrical run, Disney still reaps other financial benefits. For example, Disney clearly made a significant amount of money on merchandise sales and direct-to-consumer sales.
Additionally, the film provided content for Disney+ (where it was an undeniable hit) and the Disney parks. The synergistic nature of the Disney machine makes it hard to pinpoint the value of any given film.
Image: Disney
What is clear, however, is that The Little Mermaid was not the hit that Disney was counting on. With a $300 million budget, Disney needed the film to do better in theaters.
A Bump in the Road?
After a disappointing 2023 at the box office, Disney has rebounded specularly this year. Additionally, Bob Iger has made it clear that the studio will be reducing its budgets going forward.
Image: Disney
Hopefully, we will look back at The Little Mermaid (and 2023 as a whole) as simply a bump in the road.
