Inside Out 2 and Despicable Me 4 could boost box office revenue

A big chunk of the box office is missing: family films.

Here are some hits for kids: Universal “Super Mario Bros.” was a big boost to ticket sales, but that momentum quickly faded as many family films were released on streaming platforms rather than on the big screen after the pandemic, or were released too far apart.

A flurry of family-friendly movies have hit cinemas in recent months, with each release following the success of its predecessor, reinvigorating the box office and giving cinema owners hope for a strong second half of the year. Disney Pixar’s “Inside Out 2” made a particular impact by grossing $155 million in its opening weekend, a feat that helped restore the struggling animation studio’s industry reputation.

“Momentum is a big factor in ticket sales,” said Chris Johnson, CEO of Classic Cinemas, a Midwest theater chain.

So far in 2024, domestic box office revenue is down 23% from last year and 40% from 2019. It currently stands at $3.08 billion, according to ComScore.

Kid-friendly hits like the upcoming “Despicable Me 4” could be one of the keys to a box office recovery.

“Family” movies are a broad genre, with box office analysts offering different definitions, some saying it’s based on the film’s ratings, others saying it’s determined by the content of the film itself.

“Family films come in all shapes and sizes,” says Shawn Robbins, founder and owner of Box Office Theory, “and we as observers often limit our discussion to animated films, or films with a certain rating, or films that literally feature characters’ families, but family films are packed with all kinds of stories.”

Robbins noted that family films often include superhero movies, live-action adventure films and comedies.

“Think about how many families it took for Star Wars, the Marvel Universe, Top Gun: Maverick, Barbie, etc. to make the money they did,” he said. “The key is to be relatable, accessible and relatable to as many age groups as possible.”

So some of the families who came to see Inside Out 2 were also from Universal’s Twisters and Warner Bros.’ “Beetlejuice” is a family-friendly film due for release later this year, but some might opt ​​for Sony’s “Harold and the Purple Crayon.” Paramount “Transformers 1” and Universal’s “Wild Robots.” The highly anticipated “Moana 2” hits theaters on Thanksgiving and the third film in the “Sonic” series hits theaters in December.

“However you define it, the family film genre has been hit harder by the pandemic than any other, as parents were understandably hesitant to venture out to brick-and-mortar movie theaters during the height of this unfortunate situation,” said Paul Dergarabedian, senior media analyst at Comscore. “Fast forward to 2024, and family films have undoubtedly been a bright spot in an otherwise very challenging summer.”

Pre-pandemic, more than 20 family-friendly movies were released in theaters in 2019, with Disney’s “Aladdin,” “The Lion King,” “Toy Story 4” and “Frozen II” making up four of the top 10 grossing films that year.

Fewer than 10 family films were released in 2020. Production shutdowns due to the pandemic and a double labor strike in Hollywood have kept release numbers well below 2019 levels.

“2023 was a record year for us, but it could have been better,” Classic Cinemas’ Johnson said, pointing to the lack of family-friendly films. “You can’t ignore family audiences and their importance.”

Johnson said he felt “enlivened” after the opening performance of Inside Out 2.

The film grossed an additional $22.2 million on Monday, 14% of the previous weekend’s gross and making it the second-highest-grossing Monday of any Pixar film ever.

While there was clearly demand for a sequel, Johnson noted that the franchise has benefited from recent releases. Paramount‘s “IF” opened with $33 million; SonyThe Garfield Movie grossed $24 million.

Families attending screenings of these films would have seen posters and cardboard cutouts touting the upcoming release of “Inside Out 2” and likely saw a trailer for the film as part of the theater’s upcoming selection.

“‘Inside Out 2’ was certainly its own film and should have been a success,” Johnson said, “but I think those opening acts helped it. I don’t think the momentum at the box office and films in a similar genre helped it.” [have an] It’s a mind-blowing piece of work, and I can’t wait to see how it plays out in Despicable Me 4.”

“Despicable Me 4,” due for release on July 3, is currently expected to gross between $60 million and $80 million in its opening weekend, in line with previous films in the franchise, according to ComScore data. Dergarabedian agreed that the success of “Inside Out 2” could boost “Despicable Me 4’s” potential.

— Disclosure: Universal Pictures, which distributes “Despicable Me,” is owned by NBCUniversal, CNBC’s parent company.