The Avatar Sequel Fell Short of Expectations but Proved Audiences Still Want More Blue Aliens

James Cameron’s Avatar sequel grossed $134 million domestically its opening weekend, missing its expected earnings but proving there is still interest in the franchise 13 years after the first film. Globally, it earned $435 million, making it the third biggest opening weekend since the pandemic began.

Stakeholders throughout Hollywood needed Avatar: The Way of Water to be a success. Disney spent as much as $400 million on the film, according to the Hollywood Reporter. The company promised three additional franchise movies—one of which has already been filmed—so it needed big box office numbers to recoup its budget and affirm its business strategy. AMC and Cineworld, the two biggest movie theater chains, have also been struggling since the pandemic closed theaters, and a high-yielding Avatar sequel can earn theater exhibitors revenue. 

In the U.S. opening, Avatar: The Way of Water tied The Batman, making it the fifth biggest opening of 2022. It fell below Disney’s and industry experts’ expectations, which ranged from $135 million to $175 million.

The first Avatar is the highest grossing film in history, earning $2.9 billion. It opened domestically at $77 million, which is worth $107 million today adjusted for inflation. The film held the No. 1 spot for seven weeks and drew crowds for months. Cameron said the sequel would need to be the third or forth highest grossing film to earn a profit, meaning it must pass the $2 billion mark. This goal is lofty but not impossible, and reaching it will rely on a continued interest in the film throughout the holiday season.