Encanto released when there was sort of a bit of a lull if you will in cases. This is just terrible timing with Omicron spiking things and it's probably best that it go to D+ anyway. I do imagine the people who worked on the film aren't happy, but the proof is in the pudding that Encanto got much bigger once it was on D+ than in theaters. Few people actually went to see it, but if you put it on streaming, it's much more accessible.
It's not about accessibility though....because streaming numbers aren't transparent compared to box office numbers, lot more talent gets screwed over (i.e Squid Game until there was a loud uproar which let them get a bonus) when it comes down to royalties especially animators who don't have the same protections as their live action counterparts and definitely don't make a lot as is so adding in the loss and lack of transparency hurts them even more.
Secondly, regarding Encanto even at the peak and danger zone, Universal still put out Sing 2 which still did better than Encanto at the box office.People just didn't want to pay to go see Encanto. They are fine seeing it at home subsidized by their disney plus subscription. But they haven't given any Pixar film a chance.
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