“Toy Story” helped launch Pixar when it premiered in 1995. More than 30 years and four films later, the family-friendly series has become a revenue-generating behemoth for the Walt Disney Company and the global economy. A study commissioned by Disney from independent impact advisory firm Steward Red Queen found that the series has increased overall economic activity by $51 billion since its inception.
Much of this figure comes from consumer product sales, which Steward Redqueen argues is boosting suppliers, retailers, small businesses and service providers. This includes everything from salaries to the sale of clothing, dolls and games promoting Toy Story characters. It also takes into account transportation, tourism, manufacturing, and utility revenues related to movie viewing, theme park attraction visits, and the production of Toy Story merchandise. The report comes as “Toy Story 5” has dominated the box office since its release in June, earning more than $880 million worldwide. In addition to ticket sales, the series is also the most streamed series on Disney+.
In terms of direct economic impact for Disney, Buzz and Woody generated $16.2 billion. This includes selling merchandise, movie tickets, and home entertainment rentals. That number is more than what it cost the company to acquire Pixar, Marvel, and Lucasfilm combined (Disney spent $15.4 billion to acquire those brands).
“This is our No. 1 animated series,” said Asad Ayaz, Disney’s chief brand officer. “I don’t think there are many other franchises that have been embraced by audiences and critics for 30 years. People who were kids when the first movie came out are bringing their kids to the new Toy Story.”
The study also considers the multi-generational impact of Toy Story. As Ayaz notes, the series has been a part of culture for a long time, so millennials, who grew up with the characters, had the biggest influence at 74%. Gen Z and Gen Alpha account for 19% and 7% of the economic impact, respectively.
The Steward Red Queen report said nearly $25 billion of the overall economic impact occurred in the U.S., with California and Florida, where Disney has theme parks, as well as Texas, New York and Illinois among the states benefiting the most from the series. The company is casting a wide net to capture these numbers. Estimate sales margins for downstream suppliers such as manufacturers, retailers, and other distributors. So, for example, it takes into account the amount of money movie theaters spend on popcorn suppliers, which allows those sellers to also make a profit, pay taxes, and pay salaries.
Steward Red Queen said it made the calculations by looking at consumer spending on the Toy Story franchise, including movies, home streaming, consumer products, parks, experiences and music. We then separated those numbers in terms of direct and indirect impacts. Direct impacts include economic contributions directly generated by the operation of a franchise (such as economic contributions supported by the production of a film). Indirect impacts include the economic contributions that the franchise supports through its suppliers and distribution partners (distributors and retailers selling Toy Story products), as well as their respective suppliers. This is the first study of its kind commissioned by Disney regarding one of its franchises.
With Toy Story 5 topping the box office, a sixth movie seems inevitable.
“I’ll leave that to the Pixar team,” Ayaz says. “I wish there were more, but the great thing about Pixar is that they wait until they have a story worth telling before making the next movie.”
