Disney’s Streaming Dilemma: Star Wars and Marvel’s Diminishing Demand on Disney+ | Chart

Franchise IP has been the backbone of Disney for decades, driving its success. It is the engine behind the famous and elusive flywheels industry analysts are always squawking about. But Disney’s Star Wars and Marvel franchises are currently facing various challenges.

Disney+ is experiencing diminishing returns from its high-profile Star Wars live-action series. According to Parrot Analytics’ Demand 360, the most recent live-action Star Wars shows on the platform have not been as impactful as earlier releases. “The Acolyte” and “Obi-Wan Kenobi,” had lower demand in their first two months compared to the first season of  “The Mandalorian” in 2019. Even the latest season of  “The  Mandalorian” (Season 3) failed to match the demand levels of its debut season, which had a demand peak almost twice the demand peak of the final episode of Season 3.

Franchise shows are also losing prominence in the Disney+ catalog. Star Wars shows accounted for 10% of Disney+ TV catalog demand in Q2 2022, dropping to 9% in Q2 2024. This decline is modest compared to Marvel, whose demand share fell from 19% to 13% over the same period. Together, these franchises represented 22% of Disney+ TV catalog demand last quarter, still a significant share given that these shows comprise just 12% of the catalog, according to Content Panorama .

This trend is also reflected in the platform’s most popular shows. As of Q2 2024, only six of the Top 20 shows on Disney+ were from the Marvel or Star Wars franchises, down from 11 in Q2 2022. Of note, the pace of new streaming releases for both franchises has also decreased at the same time. Meanwhile, Disney Channel shows have been filling the space left by these franchises, with titles such as “Gravity Falls” and “The Owl House” rising in popularity on the platform.

These numbers highlight a critical question for Disney: How can they best leverage audience demand for beloved franchise IP? Selling nostalgia to millennials is effective for now, but how sustainable is it in the long term?

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