Streaming Services Want to Fill the Family Movie Void

Sony Pictures unleashed the singing reptile “Lyle, Lyle Crocodile” in 4,350 theaters across the country this weekend to the tune of an estimated $12 million to $13 million.

It was the first wide theatrical release for a family film since “DC League of Super-Pets” from Warner Bros. in July, and only the 12th family film to hit theaters this year. Just two more are expected before the end of December.

That’s a far cry from the prepandemic days of 2019, when 24 family movies came to theaters. They accounted for $8.9 billion in box office receipts, a whopping 32 percent of the worldwide total for Hollywood studios that year.

The decline today is due to a combination of factors: a hangover from the pandemic, efforts by studios like Disney and Paramount to bolster their own streaming services with fresh content and the risks of greenlighting family films that aren’t based on well-known intellectual property.

It’s affecting the health of the theatrical business.

“The movie industry needs a big and thriving family moviegoing business to return to strength,” David Gross, a box office analyst, said. He’s predicting that gross profits for family films in 2022 will total $2.75 billion to $2.8 billion. “Success with families is essential to the long-term health of the business. We consider this to be the biggest production challenge ahead.”

So where have all the family movies gone?

To streaming, of course. While last month was the worst September at the box office since 1996 — excluding the pandemic year of 2020 — Netflix, Disney and others have been pumping family films to their services. “The Adam Project” arrived on Netflix in March and the animated “The Sea Beast” in June, while Disney+ released “Pinocchio” in September and just announced that “Hocus Pocus 2,” which debuted Sept. 30, was streamed for more hours over its first three days than any previous premiere on the service.

And the streaming giants are just getting started. While both remaining theatrical releases of family films this year are animated — Disney’s “Strange World” and Universal’s “Puss in Boots: The Last Wish” — Netflix plans an onslaught of the kind of live-action family fare that studios are producing less and less. The titles include “The School for Good and Evil,” starring Charlize Theron and Kerry Washington; “Slumberland,” from the “Hunger Games” director Francis Lawrence; the sequel to “Enola Holmes”; and “Roald Dahl’s Matilda the Musical,” starring Emma Thompson as Miss Trunchbull.

Disney+ will debut the “Enchanted” remake “Disenchanted” on Thanksgiving weekend, and Apple TV + plans to make “Spirited,” its holiday musical-comedy starring Will Ferrell and Ryan Reynolds, available on Nov. 18.

The majority of the Netflix projects look expensive, with “Slumberland” costing around $90 million. Contrast that with the budget in the $50 million range for “Lyle, Lyle, Crocodile,” which is based on a children’s book and stars Javier Bardem, Constance Wu and Shawn Mendes (as the voice of Lyle).

The filmmakers behind “Lyle” are bullish on its prospects. “The combination of a live-action CGI crocodile, the fact that it’s also musical and a family film, I think give it multiple points of attraction that will hopefully lure audiences off their couches,” said one its producers, Hutch Parker, a former president of production at 20th Century Fox.

Also helping the film’s fate is the very thing that has theater owners more broadly concerned: a lack of product in the marketplace.

“Every movie I’ve made for the last 30 years had four or five other movies coming out on the same weekend, with four to five movies that had come out the previous weekend that were still out,” Mr. Parker said. “And this is unique in that you’re coming into a market that on the one hand is less vibrant. On the other hand, the opportunity in an open marketplace is unique.”

Josh Greenstein, Sony’s president of the motion picture group, added: “If we can open in the low- to midteens we can play and play. The lack of competition will be very good for the movie.”

Indeed, the lack of product this year has kept films in theaters longer, generating more ticket sales along the way. Sony’s “Where the Crawdads Sing,” for instance, earned close to $90 million domestically, and “Elvis,” from Warner Bros., had $150 million in box office revenue.

The “Lyle” directors Will Speck and Josh Gordon, who turned to family fare after a career making broad-based comedies like “Blades of Glory,” hope that their crocodile will encourage family audiences to change their moviegoing tendencies.

“We’re excited that we’ve made something that we feel like if people actually can shift out of the habit of what they might be in with streaming, we’ll deliver them something that brings joy and escape and happiness and all the things you want it to do,” Mr. Speck said in an interview.

Complicating this challenge is Netflix’s burgeoning interest in family entertainment, specifically live-action projects. The streaming service sees an opportunity to develop films based on original characters and story lines.

“We loved going to see great original family films,” said Ori Marmur, vice president of studio film at Netflix. “Sadly, now when you look at what a lot of the offerings are, they aren’t live-action family. It’s usually animated for family, and then it’s reboots, remakes, sequels, low-budget horror. We saw a real opportunity in seeing those kinds of movies, and building up a slate like that.”

The company’s quest to dig deep into films that appeal to all ages has prompted it to acquire big-budget spectacles — often ones the studios turned down because of costs or the risks of releasing a family movie not based on existing intellectual property. “The School for Good and Evil,” for example, originated at Universal Pictures almost a decade ago.

While family films released on streaming do not receive the same kind of marketing blitz that theatrical releases do, they often have other attributes coveted by studios hoping to succeed at the box office. “Slumberland” and “The School for Good and Evil” have the spectacle; “Matilda” has the musical elements, and “Enola Holmes” is a known property.

“Slumberland” began at Fox, but things got complicated once the company merged with Disney in 2019, said Mr. Lawrence, the film’s director. Disney, after all, prides itself on its expertise in making family films. It didn’t need Fox doing the same thing.

The Chernin Group, which produced “Slumberland,” had a deal that if one of its films had a director, an actor and a completed shooting script, Disney had 30 days to decide whether to make it. The company passed.

“It almost instantly turned over to Netflix,” Mr. Lawrence said in an interview, adding: “Releasing it around Thanksgiving, I am hoping that families will watch it together. That’s sort of the ideal scenario.”

Set to debut on Nov. 18, the action-adventure is based on the comic book series “Little Nemo in Slumberland,” by Winsor McCay. It features a young female protagonist, mystical dreamlands, numerous special effects, and a story about grief and loss.

“I find it comforting knowing that when it actually comes out, I won’t have that same sort of box-office stress that happens on every movie where by Friday afternoon, everybody knows what it’s made for the weekend and it’s either a success or a failure,” said Mr. Lawrence, who directed three of the four movies in the “Hunger Games” franchise and is currently shooting the prequel, “The Ballad of Songbirds and Snakes.” “Not having that sort of pressure on it is interesting.”

And he’s hoping some audiences will find the film in the Netflix-owned theaters, too.

“Would I have loved a slightly longer theatrical release, maybe some IMAX screens or something like that?” he said. “Sure.”