Stitch’s journey from overlooked character to major box office success is nothing short of remarkable.
For over two decades, the mischievous blue alien lived on the fringes of Disney’s spotlight. The original 2002 animated film, produced with minimal fanfare, deviated from the traditional Disney style, which made Stitch a less conventional figure within the company’s roster. Early promotional materials even depicted classic Disney icons like Pinocchio and Belle recoiling from Stitch in shock.
While the film’s theatrical performance was modest, Stitch gained a following through several direct-to-video sequels and a television series throughout the 2000s. The character also featured in a Disney World attraction that operated from 2004 until 2018, and maintained a steady presence in merchandising.
Today, Stitch has skyrocketed to become one of the most profitable film properties in recent years, standing out not only for Disney but across the entire movie industry.
Disney’s live-action ‘Lilo & Stitch’ remake, produced on a $100 million budget and initially intended for direct streaming release, has amassed $610 million worldwide within just ten days of theatrical release. With marketing costs estimated at $75 million or more, analysts project the film will approach $950 million in ticket sales by the end of its theatrical run. Its upcoming debut in Japan could push the total beyond the billion-dollar mark.
After sharing box office revenue with theaters, Disney is expected to net profits exceeding $300 million from ticket sales alone.
This impressive success underscores a strategic shift Disney made in 2023, shortly after Robert A. Iger resumed leadership. The company scaled back streaming-only originals and refocused on theatrical releases. Similar to ‘Lilo & Stitch,’ the ‘Moana 2’ project, initially conceived as a Disney+ series, was redirected to theaters and earned $1.1 billion.
“Launching the film in theaters worldwide amplifies its impact across streaming, merchandise, and theme parks,” explained Alan Bergman, co-chairman of Disney Entertainment. “It’s much harder to achieve that breadth when a film debuts solely on a streaming platform.”
When the studio slated ‘Lilo & Stitch’ for a Memorial Day weekend release nine months ago, optimism was measured. Despite no new content, Disney’s consumer products division had already boosted Stitch merchandise sales from $200 million in 2019 to $2.6 billion in 2024, fueled by nostalgia among young adults.
The film was positioned as lighthearted counterprogramming against Tom Cruise’s more serious ‘Mission: Impossible — The Final Reckoning,’ also opening that weekend. The possibility that Stitch might outperform Cruise’s blockbuster, though unlikely, symbolized a form of cinematic redemption—the original ‘Lilo & Stitch’ had been overshadowed by ‘Minority Report’ during their simultaneous 2002 releases.
Ultimately, the box office results were decisive. ‘Lilo & Stitch’ earned $183 million across the U.S. and Canada during the holiday weekend, while ‘Mission: Impossible,’ with a $400 million production budget excluding marketing, took in $79 million.
“Disney executed this perfectly,” remarked Kevin Goetz, CEO of film research firm Screen Engine/ASI. “They produced a film that resonated with audiences, maintained a sensible budget, selected an ideal release date, and orchestrated effective marketing and publicity campaigns.”
Celebrations at Disney’s Burbank headquarters included champagne toasts, Stitch-themed decorations in executive offices, and blue leis worn by key studio figures.
The film’s triumph also serves as a rebuttal to recent skepticism about theatrical releases. A prominent streaming executive had dismissed cinema as an outdated medium after a costly Disney ‘Snow White’ remake underperformed, suggesting audiences preferred watching movies at home.
Industry insiders across Hollywood began recalculating the profitability of ‘Lilo & Stitch’ given its unexpected box office strength.
In the past 15 years, only three live-action films with production budgets of $100 million or less have crossed the $950 million ticket sales threshold: ‘Oppenheimer,’ ‘Joker,’ and ‘Jumanji: Welcome to the Jungle.’ However, these films involved profit-sharing arrangements that limited studio earnings.
Unlike those projects, Disney retains full profit rights for ‘Lilo & Stitch,’ with no obligations for filmmaker bonuses or external financing partners.
Beyond theatrical revenue, the movie is projected to generate tens of millions more from digital rentals and premium video-on-demand sales. It is also expected to bolster Disney+ subscriptions and advertising revenue.
Associated merchandise sales alone are anticipated to yield around $400 million in annual profit.
Furthermore, the success paves the way for sequels and expanded storytelling opportunities.
“There is definitely potential to explore more narratives within this universe,” noted Alan Bergman.
The development of the new ‘Lilo & Stitch’ began in 2018 when producers proposed the idea to Disney, which at the time focused on live-action adaptations of animated classics such as ‘The Little Mermaid’ and ‘Aladdin.’
“The initial reaction was surprise that no one had pursued this property before,” said producer Jonathan Eirich. (Another producer, Dan Lin, later became head of movies at a major streaming service in April 2024.)
The production faced challenges, including delays caused by the 2023 writers’ and actors’ strikes. It was not until February 2024 that the film’s blockbuster potential became clear.
A pivotal marketing moment occurred during the Super Bowl, when a stunt featured Stitch seemingly invading the field post-coin toss and evading capture. Subsequent promotions highlighted Stitch’s playful mischief, featuring appearances in popcorn buckets and mall displays driving a pink car with the license plate “2 FAST.”
As opening day attendance surpassed expectations, Disney revised its weekend revenue estimates upward, while keeping these projections confidential to avoid premature hype.
“We didn’t want any headlines suggesting we might underperform,” said Eirich. Fortunately, those concerns never materialized.
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