The Paramount-Warner Bros. Merger: A Powerhouse Missing a Key Piece
The impending combination of Paramount Pictures and Warner Bros.’s film studio, pending regulatory approval, will create a content juggernaut with an enviable roster of franchises—from DC superheroes to The Lord of the Rings and Sonic the Hedgehog. The merged entity also recently matched Disney’s record for most Academy Awards in a single year, underscoring its prestige. Yet, analysts note a glaring gap in its prospective arsenal: a competitive animated film slate.
In today’s market, family-friendly animation is a critical driver of box office stability and broad audience reach. “When the moviegoing world is operating at or near peak efficiency, it’s virtually always because of a diverse release slate that includes one or more movies catering heavily to kids and families,” explains Shawn Robbins, director of analytics at Fandango and founder of Box Office Theory. “Animation, in most cases, directly serves that audience while providing an anchor for studios and cinema owners to rely on.”
Decade-Long Animation Gap Quantified
Over the last ten years (2016-2025), both Paramount and Warner Bros. have significantly underperformed in theatrical animation compared to industry leaders. According to data from Comscore:
- Paramount released eight animated features, generating $1.1 billion in global ticket sales.
- Warner Bros. also released eight, tallying $1.3 billion.
For context, their performance pales next to the animation giants:
- Disney released 21 animated films, earning $14.1 billion.
- Universal released 23, grossing $10.7 billion.
- Sony released 16, for $4.6 billion.
The disparity in high-grossing titles is stark. Since 2016, only one Paramount animated film (Paw Patrol: The Mighty Movie, 2023) exceeded $200 million globally, and only one Warner Bros. title (The Lego Batman Movie, 2017) surpassed $300 million. Meanwhile, Disney has produced seven animated features grossing over $1 billion globally in that period, and Universal has two.
The Strategic Value of Animation
Paul Dergarabedian, head of marketplace trends at Comscore, emphasizes the category’s importance: “Animated film releases are crucial for any movie studio, requiring a well-thought-out strategy whether the projects are original works, extensions of existing intellectual property, or reboots of beloved legacy franchises.”
Animation offers unique financial advantages. Robbins notes that animated features typically avoid the steep second-weekend drops common in other genres. “Not all animated releases are as successful as others, but they can be incredibly valuable with their potential for long-tail grosses alongside ancillary revenues via merchandising, down-window rentals and purchases, and other non-theatrical financial opportunities.”
This reliability is increasingly vital. Comscore data shows that over the last two years, PG-rated family films have consistently outperformed PG-13 and R-rated films at the box office. “This rating is significant because it allows these films to attract a broader audience, making them true four-quadrant releases with the highest box office potential of almost any genre,” Dergarabedian said.
An IP Gold Mine and a Path Forward
Working in the merged studio’s favor is a deep well of existing animated intellectual property. The combined library includes global icons like SpongeBob SquarePants, the Smurfs, Paw Patrol, Teenage Mutant Ninja Turtles, and DC’s superheroes—all ripe for theatrical animated features.
Disney and Universal have thrived by balancing sequels with original stories. Disney pairs franchises like Frozen and Inside Out with originals such as Coco and Encanto. Universal similarly mixes new properties like Sing and Migration with follow-ups like Kung Fu Panda 4.
Dergarabedian concludes that the new Paramount/WBD entity must adopt a similar dual strategy. “It will be important for a freshly minted Paramount/WBD combo to not only expand on these brands but also to develop new animated properties to have the best shot at capturing their share of the massive potential box office for this extremely popular and competitive category.”
Disclosure: Versant is the parent company of CNBC and Fandango.
