Yikes! Disney’s Live-Action 'The Little Mermaid' Cost Nearly $400 MILLION to Make.
Disney’s 2023 live-action The Little Mermaid aimed to revive the magic of the 1989 animated classic with dazzling visuals and updated songs, but its financials reveal a price tag that could make even King Triton wince. Thanks to Forbes journalist Caroline Reid, we know the production cost soared to $379.8 million, a figure that underscores the risks of Hollywood’s blockbuster remake machine.
As Disney grapples with a rough 2025 at the box office, The Little Mermaid’s budget breakdown offers a glimpse into why even beloved fairy tales can become financial gambles. Let’s dive into how the costs stacked up, whether the film broke even, and how it fits into Disney’s recent string of costly flops.
Here's the TL;DR...
Massive Budget Uncovered: Caroline Reid’s analysis shows The Little Mermaid’s production costs hit $379.8 million, driven by pandemic delays and extensive visual effects, far above initial $250 million estimates.
Box Office Breakdown: It grossed $570 million worldwide but posted a $25 million theatrical loss after tax credits, though streaming and merchandise likely offset some losses.
Net Cost Reality: UK tax reimbursements of $69.8 million lowered Disney’s net spend to $310 million, just shy of its box office take.
Disney’s 2025 Struggles: Recent flops like Snow White (over $115 million lost) and Pixar’s Elio (a historic low) reflect a pattern of high-cost underperformance.
How Forbes Unraveled the $379.8 Million Budget
Forbes contributor Caroline Reid has meticulously tracked The Little Mermaid’s financials through public filings from Disney’s UK subsidiary, Sand Castle Pictures Limited, set up for filming at Pinewood Studios near London. These documents, required under the UK’s Audio-Visual Expenditure Credit (AVEC) program, offer a rare window into a major studio’s per-film costs, as U.S. financials typically bundle projects together.
Reid’s reporting, based on these filings, shows the budget evolving over time: $297 million gross ($240.2 million net after a $56.8 million rebate) as of August 2022, $355.1 million gross ($289.9 million net after $65.2 million) by September 2024, and finally $379.8 million gross ($310 million net after $69.8 million) for the year ending August 31, 2024.
The $24 million increase in the final year reflects post-release expenses, such as late invoices for visual effects, crew payments, and administrative costs like audits or currency adjustments—standard in Hollywood accounting as projects finalize.
Reid highlights key cost drivers: production delays from the COVID-19 pandemic, which pushed filming from March 2020 to January 2021, with a further setback in July 2021 when crew tested positive, halting work. These disruptions inflated expenses, especially for the film’s heavy reliance on VFX from British firm Framestore, which crafted the underwater world and characters like Sebastian and Flounder. Critics later called these CGI creations “eerie” and “unnatural,” suggesting the investment didn’t fully resonate.
The production employed over 250 staff, with payroll costing tens of millions, alongside expenses for script rights, loans to establish the UK entity, and fees for auditors and legal work.
A $4.4 million UK government grant, part of $10.4 million in “other operating income,” helped offset pandemic impacts. The AVEC reimbursement of $69.8 million—18.3% of the gross cost—required at least 10% of spending in the UK and a cultural test (e.g., using British talent or facilities), which the film met. This lowered Disney’s net cost to $310 million.
Reid’s analysis aligns with UK Companies House filings, and her incremental updates reflect the staggered nature of production accounting.
As Disney CEO Bob Iger noted in 2023, “We need to reduce costs on everything that we make because, while we’re extremely proud of what’s on the screen, it’s gotten to a point where it’s extraordinarily expensive.”
Did The Little Mermaid Break Even?
The Little Mermaid grossed $570 million globally—$298 million domestic, $272 million international—with Halle Bailey’s Ariel earning a 94% audience score on Rotten Tomatoes.
Studios typically split box office revenue 50-50 with theaters, leaving Disney with about $285 million. Against the $310 million net production cost, this results in a $25 million theatrical loss, as Reid’s calculations confirm.
Marketing costs, estimated at $100-140 million for blockbusters, aren’t included in these filings, pushing the total investment closer to $450 million.
However, non-theatrical revenue offers some relief. The film was a streaming hit on Disney+, racking up 16 million views in its first five days, and likely generated income from DVDs, digital sales, and merchandise like Ariel dolls and soundtracks. A Disney spokesperson told Reid, “There will be other income generated by the production (such as DVD/Blu Ray sales, merchandising, etc.). It’s not reflecting a true account of whether the film was overall profitable.”
Compared to remake giants like The Lion King (2019, $1.7 billion) or Beauty and the Beast (2017, $1.3 billion), it’s a modest performer, but it avoided the catastrophic losses of other Disney titles.
Disney’s 2025 Box Office Woes
The Little Mermaid’s tight margins mirror a tough 2025 for Disney. The live-action Snow White, starring Rachel Zegler, was a major disappointment. With a $269.4 million production budget and $111 million in marketing, it grossed just $205.5 million worldwide, leading to an estimated $115 million loss after all revenue streams.
Controversies over story changes, dwarf casting, and Zegler’s comments on the 1937 original fueled a 66% second-weekend drop, making it one of Disney’s weakest remakes since Pete’s Dragon (2016, $143.7 million).
Pixar’s Elio, an original sci-fi story about a boy mistaken for Earth’s ambassador, set a grim record with a $21 million domestic opening—Pixar’s lowest ever. Budgeted at $200 million, it grossed $153 million globally, likely losing $300 million with marketing included, hurt by weak promotion and summer competition.
Other recent flops include 2023’s Haunted Mansion ($150 million budget, $115 million gross, ~$200 million loss), Strange World ($180 million budget, $73 million gross, ~$200 million loss), and Indiana Jones and the Dial of Destiny ($300 million budget, $384 million gross, steep losses). Marvel’s The Marvels (under $200 million vs. $275 million budget) and Ant-Man and the Wasp: Quantumania (~$100 million loss) also struggled, reflecting audience fatigue with sequels and remakes.
Disney scored a win with Lilo & Stitch’s live-action remake, which soared past $1 billion in summer 2025, proving the studio’s IP can still deliver when it clicks. But the flops highlight broader challenges: streaming habits reduce theatergoing, cultural controversies amplify online, and bloated budgets strain returns.
People Also Ask: Was The Little Mermaid’s Budget Worth It?
The film’s visuals and Bailey’s performance won fans, but a 67% Rotten Tomatoes critic score and $25 million theatrical loss suggest the cost outpaced the payoff. Reid’s reporting shows how delays and VFX drove expenses, but the mixed reception questions their value.
People Also Ask: What’s Next for Disney’s Remakes?
Iger’s pushing for leaner budgets and selective projects. Moana’s live-action remake is set for 2026, but expect cost controls. Lilo & Stitch’s success shows the formula can work when it’s crowd-pleasing and disciplined.
The Little Mermaid’s financial saga is a cautionary tale of Hollywood excess. With its IP vault and fanbase, Disney can rebound, but in a streaming-heavy, budget-conscious market, even fairy tales need fiscal restraint.
Hat Tips
Disney Reveals Spending On ‘Little Mermaid’ Swelled To $379.8 Million, Forbes, September 3, 2025
A Deep Dive Into The Little Mermaid’s $360 Million Costs, Forbes, September 29, 2024
Disney’s Little Mermaid Plunges To $5 Million Loss, Forbes, September 15, 2024
Disney Sinks $300 Million Into ‘Over Budget’ ‘Little Mermaid’ Movie, Forbes, October 2, 2023
Disney’s ‘Snow White’ Ends Theater Run. How Much Money Did It Lose?, Forbes, June 7, 2025
‘Snow White’ Bombs: $115 Million Loss After Zegler Controversy, Box Office, Deadline, March 31, 2025
5 Reasons Why Pixar’s Elio Flopped At The Box Office, SlashFilm, June 23, 2025
Disney Just Suffered 3 Major Box Office Flops In a Row, The Direct, June 3, 2025
The 10 Biggest Box Office Hits And Flops Of Summer 2025, Looper, September 1, 2025