Pixar, LucasFilm, and WD Animation are in serious trouble. Marvel is heading down this path too. There are multiple reasons why. In no particular order:
1.) Poor marketing.
2.) Poor storytelling.
3.) Excessive costs to make movies.
4.) Streaming options at home make the theater experience less attractive.
5.) Audiences that avoid political/social commentary for children's movies.
Lightyear and Strange World cost a combine $350 Million - $380 Million to make. That's bonkers. It's animation.
Many people were confused whether Lightyear was a Toy Story movie or not. Confusion is a poor marketing tactic. The marketing was so limited for Strange World it almost feels like TWDC was trying to hide this movie. Bizarre marketing tactic.
I realize there are folks who are going to love Strange World and Lightyear. The Cinema Score is low for a Disney animated movie, fair or unfair. It also has no audience buzz, fair or unfair. Lightyear had a very good first Act followed by one of the worst second and third Acts in a Disney movie I've ever seen. It is a lazy and dumb metaphor that Buzz Lightyear's greatest enemy is himself in the form of Emperor Zurg. That's the inspiration behind Andy wanting a Buzz Lightyear super-hero toy? The superhero is actually the sworn enemy of the superhero? That's not consistent with being a superhero.
If you are shelling out $100 / year or more for streaming, why not just stay home and use it. I have seen close 1,000 movies in the theater. When I was younger, I averaged 2 movies / week in theater. But, I concede it's far less attractive for a family to shell out $50 or more at the theater and also pay the money to stream the movie. I truly think people view streaming as a replacement for the movie theater experience and that is a cultural shift.
Look, people are going to have to accept that some folks simply do not want to take there kids to see a movie that has political and social commentary. Adults and kids are already getting bombarded with social and political commentary in every day life, news, work, parties, etc. Sometimes parents just want to take their kids to a movie and when they get in the car to leave the theater, they just want to talk about how much fun that movie was or sing a fun song they heard. Sometimes parents just want an escape for a couple hours and when they cannot get it because they are going to have to answer social commentary questions from kids after the movie is over, they are tired and worn out. And by the way, the social and political commentary, can come from any view point. This form of escape is becoming far less available to many parents to do something fun with their kids. It has even crept into zoos, museums, sporting events, etc. It appears to me that audiences have tuned out these types of animated family movies, right or wrong, better or worse. That's the reality that TWDC needs to accept.