Business
Superheroes came to Hollywood's rescue this summer. Is it enough to save movies?
Foul-mouthed superheroes, babbling Minions and plenty of Anxiety (the animated kind) have propelled this summer’s box office past the winter and spring theatrical doldrums, marking one bright spot in an otherwise industry-wide gloom.
Boosted by a bevy of sequels, the summer’s gross box office receipts (starting from the first Friday in May) is projected to total roughly $3.6 billion through the Labor Day weekend, according to Paul Dergarabedian, senior media analyst at Comscore.
That’s short of last year’s “Barbie” and “Oppenheimer”-fueled haul of $4 billion, but still higher than summer totals in 2022, 2021 and 2020 — a positive sign for theater owners and studio executives who weathered a tough January-to-May stretch of limited and underperforming films.
And with a much-anticipated fall and winter slate of films including “Beetlejuice Beetlejuice,” “Wicked” and “Moana 2,” industry insiders are sounding more upbeat for the end of the year and beyond.
“If we can carry this same momentum that we have this summer currently into the fall and then into the beginning of 2025, I think exhibition will be very pleased,” said Jim Orr, president of theatrical distribution at Universal Pictures. “We can truly say we’re back.”
The optimism is a far cry from earlier this year, when the industry collectively wrung its hands as the box office struggled to captivate audiences. That concern turned into panic by Memorial Day, when films such as “Furiosa: A Mad Max Saga” and “Garfield” did not perform up to high expectations, leading to the worst Memorial Day weekend box office in almost three decades.
(“Garfield” ended up grossing more than $257 million in global box office on a reported budget of $60 million.)
Industry observers now see that five-month stretch as the low point in the theatrical slump, fueled in part by a lingering slowdown from the pandemic and the dual strikes by writers and actors, which disrupted the production and marketing of films.
“This industry took a double gut punch,” said Charles Rivkin, chairman of the Motion Picture Assn. “First we had COVID, which turned our $11-billion industry into zero overnight. And then when we were recovered from that, we immediately had the strikes.”
Morale was low at the outset of the season. Save for a few successes, such as Disney’s “Kingdom of the Planet of the Apes,” May releases — from Universal’s “Fall Guy” to Warner Bros.’ “Furiosa” — mostly fell flat.
“The expectations for ’24 were definitely tempered,” Dergarabedian said. “We didn’t have a Marvel movie kicking off the summer.”
But starting with June’s “Bad Boys: Ride or Die,” the box office started to pick up. It would be the first of several sequels to power the all-important summer box office.
Animated films helped to power the rebound.
“Inside Out 2” and “Despicable Me 4” put up blockbuster numbers, which is notable because animation was one of the slowest genres to recover from the pandemic due to families’ wariness to return to theaters and the ease of watching movies on streaming platforms.
With several animated films set for release later this year, worldwide family box office revenue could reach $6.1 billion, which would surpass 2018’s total, said David A. Gross, who publishes the FranchiseRe movie industry newsletter.
“It’s fair to say that since ‘Super Mario’ in spring of 2023, family moviegoing is back to pre-pandemic levels,” he said.
To date, the domestic box office has generated about $5.6 billion, down from $6.6 billion at this point last year, according to Comscore. But the summer box office has made up a lot of ground.
“I don’t like to spike the ball on the five-yard line, but I think we’re in the right direction,” said Rich Gelfond, chief executive of Imax Corp., the giant-screen technology company that operates out of Playa Vista. “We’re certainly on the road back.”
One reason for the recovery: Walt Disney Co. got its groove back this summer, with the help of “Inside Out 2.”
The Pixar animated sequel to 2015’s “Inside Out” drew $1.6 billion worldwide, making it the highest grossing animated title of all time, and the top movie of the summer season. Then, Disney-owned Marvel Studios packed a punch with the R-rated “Deadpool & Wolverine,” which amassed $1 billion in global revenue and became the second-highest grossing film of the summer.
“Historically, there’s been a bit of a ceiling for R-rated movies just because a bunch of kids can’t come,” said Greg Marcus, chief executive of Marcus Theatres, a Milwaukee, Wis.-based chain with about 80 locations spanning 17 states.
But the reception for the movie “speaks to the … clamoring for product. The people are saying, ‘If you build it, we will come,’” he said
The box office showing for Pixar and Marvel was significant, as the key Disney brands have struggled to consistently deliver in recent years. The House of Mouse’s uncharacteristically weak post-pandemic track record was one reason box office analysts drastically lowballed opening weekend projections for “Inside Out 2.”
“Everyone had high hopes for that film,” said Sean Gamble, CEO of Cinemark, the Plano, Texas-based theater chain with more than 300 locations, including 20 in Southern California. “We certainly did, but that proved out to be way beyond what we expected. It’s probably one of the biggest outperforming films … we’ve seen in a very, very long time.”
Tony Chambers, executive vice president of theatrical distribution at Disney, said, “Quality matters, and quality delivers” — echoing a key point from Disney CEO Bob Iger, who has ordered sweeping cuts across the company to stem losses from its streaming business and has directed creative departments to focus on theatrical and not crank out as much content.
Appealing to broader, multicultural audiences doesn’t hurt either, Chambers said.
“It sounds very simple, but if you cast your net wide enough, the more fish you’re likely to get,” he said. “That’s been the common denominator for all the movies that have worked successfully this summer.”
To be sure, the movie industry still faces massive challenges, regardless of this summer’s slight reprieve. Box office revenue is still below pre-pandemic levels, and it’s unclear whether it will ever fully rebound as viewing habits shift.
So far this summer, theaters across the U.S. sold 274 million tickets, an 18% decline from last summer, according to industry data firm EntTelligence. That pales in comparison to the 406 million tickets sold in summer 2019 — a time when moviegoers weren’t yet accustomed to watching major releases at home on streaming services.
What’s more, film financing has become more difficult as interest rates have increased. China is no longer a reliable market for boosting American films’ box office revenue. And studios have slashed budgets and laid off thousands of employees as they struggle to balance their massive spending on streaming services with the lower-than-expected returns.
Still, if box office returns for the second half of this year are down by only 10% compared to pre-pandemic levels, that would be a good result, Gross said.
And this summer, the charge was led by a plethora of sequels.
“Sometimes people question, ‘Are there too many sequels?’’’ Gamble said. “Across the board, with compelling stories, they work. And we’ve seen many, many examples of that throughout the course of this summer.”
Of course, simply adding more chapters to a franchise doesn’t necessarily guarantee success (see: “Furiosa”). But this summer’s sequels have been “solid,” leading to some level of reassurance for the industry.
“When these things are hitting, and when the box office is flowing, it just helps everything about the business,” Gross said. “It helps everyone relax.”
While original and nonfranchise films didn’t lead the box office this year, they certainly gave it a boost.
Surprise breakout hits such as Neon’s masterfully marketed horror flick “Longlegs (the indie studio’s biggest movie to date) and Sony’s adaptation of the bestselling Colleen Hoover novel “It Ends With Us” weren’t nearly as lucrative as the likes of “Deadpool” or “Inside Out 2.” But they played an important role, exceeding expectations and keeping the popcorn lines moving.repeats “flowing” from quote.
“Every dollar counts in the summer, and those … films added significantly to the bottom line,” Dergarabedian said. “Every $20 million times five … is $100 million. So it all adds up to what turned out to be a pretty magnificent summer.”
Emelyn Stuart, owner of Stuart Cinema and Cafe in Brooklyn, N.Y., said summer business has been “amazing” compared to the previous year. Her theater has only one screen, which means she has just one chance at a time to pick a winner.
Last year, some of her choices included “Indiana Jones and the Dial of Destiny,” as well as the DC Comics superhero film “The Flash,” which grossed just $271 million worldwide amid a controversy surrounding its star, Ezra Miller.
This year, she chose “Bad Boys: Ride or Die,” “Despicable Me 4,” “Deadpool & Wolverine” and “A Quiet Place: Day One.” The variety of available films led to a winning combination, she said.
For the fall, she’s planning to add a second screen to expand her options — particularly for attracting family audiences.
“With ‘Wicked’ coming, with ‘Beetlejuice,’ with ‘Joker,’ I think we’re going to end the year strong,” she said.
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
Missouri Lottery Pick 3, Pick 4 winning numbers for Jan. 4, 2026
Photos: Past and present Montana State Bobcats meet in Nashville
Apex Receives Exploration Permit for Rift REE Project, Nebraska; Drill Program Preparation Underway
Westbound I-80 closed at Nevada Stateline and Truckee due to spin-outs
On This Day, Jan. 5: New Hampshire adopts first state constitution – UPI.com
Florida High School Football Rankings: Top 25 teams – Oct. 21
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
99th annual Pony Swim held in Virginia
Video: ‘It Didn’t Have to Happen This Way:’ U.Va. Faculty Call for Review of Police Response to Protests
Trump vows US ‘in charge’ of Venezuela as he reveals if he’s spoken to Delcy Rodríguez
Trump’s abduction of Maduro escalates concerns over potential war with Iran
Cuba says 32 Cuban fighters killed in US raids on Venezuela
Dan Bongino officially leaves FBI deputy director role after less than a year, returns to ‘civilian life’
Hundreds march in silence to honour Crans-Montana fire victims
-
World1 week agoHamas builds new terror regime in Gaza, recruiting teens amid problematic election
-
Indianapolis, IN1 week agoIndianapolis Colts playoffs: Updated elimination scenario, AFC standings, playoff picture for Week 17
-
Business1 week agoGoogle is at last letting users swap out embarrassing Gmail addresses without losing their data
-
Southeast1 week agoTwo attorneys vanish during Florida fishing trip as ‘heartbroken’ wife pleads for help finding them
-
Politics1 week agoMost shocking examples of Chinese espionage uncovered by the US this year: ‘Just the tip of the iceberg’
-
News1 week agoRoads could remain slick, icy Saturday morning in Philadelphia area, tracking another storm on the way
-
World1 week agoPodcast: The 2025 EU-US relationship explained simply
-
News1 week agoMarijuana rescheduling would bring some immediate changes, but others will take time