Is Disney’s Reign Over Animation at Risk with Ne Zha 2’s Record-Breaking Success?

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Summary

  • Ne Zha 2 has become the highest-grossing animated film in history with over $2 billion globally.
  • Disney is facing box office struggles post-COVID due to flops like Snow White (2025) and lower-than-expected Marvel earnings.
  • North American animation remains strong with successful TV shows like Arcane and original films from studios like Dreamworks.

Over the past few months, an original Chinese-animated film titled “Ne Zha 2” has been dominating box offices, outperforming even Disney and other prominent North American animation studios. Given that Disney (also known as The House of Mouse) has been facing difficulties lately, one might wonder if they should be concerned about being surpassed in the future.

In simple terms, it can be observed that Disney, once a dominant force in the entertainment industry under the leadership of CEO Bob Iger in the 2010s, has encountered some challenges in recent times. The company’s expansions resulted in ownership of popular brands like Marvel, Star Wars, and more through the acquisition of 20th Century Fox. However, the past few years have been less smooth sailing for Disney. The underperformance of the Star Wars sequel saga and the Marvel Cinematic Universe post-Infinity Saga has become noticeable, along with a significant drop in the quality and success of its animated productions. As a result, Disney’s financial health may be affected. In light of these difficulties, it would be prudent for the company to monitor rising competitors such as Ne Zha 2.

The animated film “Ne Zha 2” has just reached unprecedented heights, as Variety reports it’s boosting the total projected global box office income this year to an impressive $34.1 billion, a significant increase from the previous prediction of $33 billion in December. This new forecast was made by Gower Street Analytics.

The movie “Ne Zha 2” came out earlier this year, following up on its 2019 original. It’s the story of a mischievous demon child from Chinese folklore, filled with action and humor. Since it hit theaters, it has won over Chinese viewers, earning over $2 billion in ticket sales and breaking records as the highest-grossing animated film ever made.

Disney’s Box Office Is Faltering In The Face Of Ne Zha 2’s Success

Disney has faced challenges in recovering from COVID-19, particularly boosting ticket sales and attracting audiences back to cinemas. The years 2023 and 2024 proved difficult for Marvel Studios, as their high-budget productions, specifically The Marvels and Ant-Man & The Wasp: Quantumania, turned out to be costly investments for the company. In total, these films cost Disney $637.5 million to produce. Regrettably, their global box office earnings only reached $682.2 million, after accounting for the standard cut given to cinemas, left the company with a relatively small profit of $341.1 million.

Unfortunately, it’s not just superhero movies that have been experiencing box office flops. This trend suggests a broader issue for the company. The idea of remaking Disney’s first animated film, Snow White and the Seven Dwarfs, seemed somewhat unremarkable. This might be due to audience fatigue from the constant stream of reboots, with people yearning for more original content. Live-action remakes were once financially successful, which is likely why Disney was so eager to pursue this creative approach. However, the 2025 version of Snow White has struggled upon release. Its ticket sales have been disappointing, only earning $142.8 million compared to the projected figures.

As I pen my latest review, I can’t help but marvel at the staggering success of “Ne Zha 2” at China’s box office. This animated gem has single-handedly propelled the nation’s overall projected box office earnings from a billion dollars to an astounding $7.6 billion! The impact is so immense that even Disney, a powerhouse in both global and domestic markets, seems to have lost a touch of its seismic influence. Quite a remarkable feat indeed!

Is North American Animation In Trouble, Or Does Disney Stand Alone?

In contrast to the strong performance of Ne Zha 2, the animation sector in North America is thriving with its own unique offerings. On TV, animators continue to innovate by challenging conventional uses of the medium. For instance, Arcane: League of Legends and Invincible have garnered massive popularity on Netflix and Prime Video respectively, while The Boys and its dark superhero spin-off Invincible are in a close race for popularity. In the movie scene, studios such as Dreamworks and Sony Animation Studios are maintaining freshness with original productions. The Wild Robot and the Spider-Verse franchise have proven to be commercially successful despite their humble budgets, with Inside Out 2 recently breaking records by grossing nearly $1.7 billion. However, Disney’s Pixar faced difficulties in the early 2020s as theaters struggled due to COVID-19 and the rise of streaming services.

At present, Disney’s enthusiasm and skill for animation might not match that of the Chinese market, but it certainly hasn’t vanished. This isn’t a sign of a widespread creative drought across the industry, but rather a story of one major corporation’s mismanagement, where financial gains have been given priority over a creative vision. If Disney chose to, it could significantly boost its animated division and pose a significant threat to Beijing Enlight Pictures, creators of Ne Zha 2. However, Disney’s focus on short-term profits and milking nostalgic audiences has weakened its influence in the animation world. It seems that for Disney, bridging the gap between its current productions and hits like Ne Zha 2 might be an almost impossible feat.

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2025-04-02 16:25