Stitch's Grandfather
Member
"Flop" has both a community meaning and a meaning within the walls of Disney.
Disney expects a certain rate of return on all movie investments, and any movie that does not clear that bar means that money was misallocated (i.e. "flop"). When money is misallocated, it means that Disney should have either returned that money to shareholders or put the money toward some other area that might have yielded a higher return. And in Disney's case, they expect a high rate of return relative to their competition (since they're the "Apple" or entertainment, they expect to command higher profitability rates than their competitors). If the box office is going to consistently underdeliver, expect shareholders to demand some meaningful change from Disney, for instance stepping up their theme park investments.
TL;DR: It does not matter if a movie "made money", it matters that a movie makes a specific rate of return within a specific time frame, and Disney expects their movies to consistently have among the highest profitability in the industry.
Disney expects a certain rate of return on all movie investments, and any movie that does not clear that bar means that money was misallocated (i.e. "flop"). When money is misallocated, it means that Disney should have either returned that money to shareholders or put the money toward some other area that might have yielded a higher return. And in Disney's case, they expect a high rate of return relative to their competition (since they're the "Apple" or entertainment, they expect to command higher profitability rates than their competitors). If the box office is going to consistently underdeliver, expect shareholders to demand some meaningful change from Disney, for instance stepping up their theme park investments.
TL;DR: It does not matter if a movie "made money", it matters that a movie makes a specific rate of return within a specific time frame, and Disney expects their movies to consistently have among the highest profitability in the industry.