Exactly. Iāll take it a step further in regards to TLM. one of the main reason that these live action remakes have generally done decent at the box office is because of a strong love and nostalgia related to the original animated films. People go because they remind them of the films they already love. The more you deviate from that source material, the more the potential for engagement to diminish and potential customers to be turned off.
So with TLM I think there was a portion of potential ticket buyers who saw the trailers and felt āthis isnāt my The Little Mermaidā and just didnāt care to see it. Not just Ariel but also the designs of the animal characters as well. And itās not really racism as much as a lack of continuity (ie I think making Ariel a blond white girl or had her hair be short or other changes to the appearance would have also had a negative effect). When you deal in nostalgia, itās a narrow road to stay on.
Personally I think it would have been a better option to just make a movie featuring Halle as a Mermaid but a completely different story, detached from TLM (or have it me TLM adjacent like sheās a cousin or grand daughter or something) rather than have her be Ariel.