Once the merger between Paramount-Skydance and Warner Bros. Pictures is finalized, the combined entity will hold a portfolio of heavyweight flagship franchises, backed by a deep-seated reputation within the industry. Yet, even after this powerful union of two entertainment giants, a critical gap remains: a slate of animated films robust enough to compete head-to-head with Hollywood peers such as Disney and Universal Pictures.

Currently, the prospective merged company awaits regulatory approval; meanwhile, it has already amassed a deep bench of high-profile projects, spanning DC superhero films, a sequel to *Minecraft*, another installment in the *Sonic the Hedgehog* series, and new entries into *The Lord of the Rings* universe. Notably, earlier this month, Warner Bros. tied the record for the most Academy Awards won by a single studio in a given year—a feat that further underscores its significant influence within the industry.

However, one cannot overlook the fact that a primary driver for drawing family audiences into movie theaters is child-friendly animated content—a sector in which neither Paramount nor Warner Bros. has achieved significant breakthroughs over the past decade.

According to data from Comscore, since 2016, Paramount and Warner Bros. have each released eight animated feature films on the big screen. From this category, Paramount has generated a global box office total of $1.1 billion, while Warner Bros. has earned $1.3 billion worldwide. During this period, only one animated film released by Paramount Pictures—*PAW Patrol: The Mighty Movie* (2023)—surpassed $200 million in global box office revenue; similarly, Warner Bros. Pictures saw only one animated feature—*The Lego Batman Movie* (2017)—exceed $300 million globally.

In stark contrast, over the past decade, Disney released 21 animated films, generating a cumulative box office total of $14.1 billion; Universal Pictures released 23 animated films, grossing a combined $10.7 billion; and Sony released 16 animated films, taking in $4.6 billion.

Notably, seven of Disney’s animated films surpassed the $1 billion mark in global box office revenue, a feat also achieved by two of Universal Pictures’ animated titles.

It should be noted that the aforementioned figures do not include hybrid live-action/animation films—such as Paramount’s *Sonic the Hedgehog* franchise, Universal’s *Gabby's Dollhouse*, and Disney’s *The Lion King* (which Disney classifies as a live-action film). Furthermore, animated films that debuted on streaming platforms during the pandemic before subsequently receiving a theatrical release—such as Disney’s *Soul*, *Luca*, and *Turning Red*—have also been excluded from these statistics.

Shawn Robbins, Chief Analyst at Fandango and founder of Box Office Theory, stated: "When the film market reaches or approaches peak operational efficiency, it is almost invariably due to a diverse slate of films—one that includes one or more titles primarily geared toward children and families. In most instances, animated films serve this specific demographic directly, while simultaneously providing studios and theater owners with a reliable and steady source of revenue they can count on."

According to forecasts, by 2025, a combined Paramount and Warner Bros. entity is projected to capture 27% of the U.S. domestic box office market—falling just short of Disney’s 28% market share. Paul Dergarabedian, Head of Market Trends at Comscore, stated: "As Paramount and Warner Bros. merge, it becomes even more critical to strategically deploy their combined resources to develop a robust portfolio of animated films."

"The distribution of animated films is vital for any studio; whether a project is an original work, an extension of existing intellectual property, or a reboot of a beloved classic franchise, it requires a carefully considered strategy," he added.

Comscore data reveals that over the past two years, family-friendly PG-rated films have performed exceptionally well at the box office, outpacing both PG-13 and R-rated titles.

Dergarabedian noted: "This rating is significant because it allows these films to appeal to a broader audience, making them true 'four-quadrant' releases—films that, in today's theatrical landscape, possess arguably the highest box office potential of any genre."

Furthermore, Robbins pointed out that animated films typically do not hit their box office peak immediately upon release; this means they can steadily accumulate revenue throughout their theatrical run while gradually building positive word-of-mouth.

While a typical Hollywood film often sees its box office revenue drop by 50% to 70% in its second weekend following the initial opening-weekend surge, animated films rarely experience such a precipitous decline.

For instance, Disney’s *Jumpers* saw a decline of less than 37% in its first week and less than 38% in its second—a performance far superior to that of other film genres released during the same period.

Robbins added: "Not every animated film will achieve the same level of success as the top-tier hits, but they can hold immense value, as they offer the potential for long-term box office revenue, as well as ancillary income generated through merchandise sales, digital rentals and purchases, and other non-theatrical monetization opportunities."

For Paramount and Warner Bros., there is also a distinct advantage: they already possess a wealth of lucrative animated intellectual property. Their combined library includes renowned franchises such as *SpongeBob SquarePants*, *The Smurfs*, *PAW Patrol*, *Teenage Mutant Ninja Turtles*, and the DC superheroes.

Looking back over the past decade, both Disney and Universal Pictures have achieved remarkable success in their strategic approach to releasing both original animated features and sequels. Disney has released original masterpieces such as *Coco*, *Zootopia*, and *Encanto*, while also crafting classic sequels like *Frozen 2*, *Toy Story 4*, and *Inside Out 2*. Universal Pictures, meanwhile, has launched new films including *Sing*, *The Secret Life of Pets*, and *Migration*, alongside popular sequels such as *Kung Fu Panda 4*, *Despicable Me 4*, and *The Bad Guys 2*.

"For the newly formed Paramount/Warner Bros. partnership, the imperative is not only to expand upon these existing brands but also to develop new animated properties—thereby maximizing their ability to capture the immense box office potential of this incredibly popular and fiercely competitive film genre," said Dergarabedian.