Masters of the Universe Sequel Likely Despite Box Office Struggles

Despite a disappointing theatrical performance, Masters of the Universe appears well-positioned to receive a sequel as Amazon MGM Studios continues to prioritize its long-term streaming strategy over traditional box office profitability.

The film, starring Nicholas Galitzine as He-Man, has generated approximately $89.9 million worldwide since its release, far below expectations for a production reportedly costing around $170 million. After opening in early June with $29.4 million domestically, the movie debuted in second place behind the latest Scary Movie reboot, which earned $54.3 million. During its second weekend, Masters of the Universe slipped to fifth place with just $8.9 million in ticket sales, while competing horror titles such as Backrooms and Obsession continued to gain momentum.

Given that theaters typically retain roughly half of ticket revenue, Amazon MGM Studios has received only about $45 million from the film’s global box office so far. That figure falls short even of the reported $52.1 million spent during pre-production. Based on estimates cited by Variety, the movie would need to approach $340 million in worldwide ticket sales to break even theatrically, leaving it significantly below that threshold.

Audience reception, however, has been considerably stronger than its financial results suggest. The film earned an 87% audience score on Rotten Tomatoes, with viewers praising its action sequences and visual presentation. Industry observers point to changing viewing habits since the pandemic as a major factor behind its underwhelming theatrical turnout. While streaming consumption surged during lockdowns, global cinema attendance has yet to fully recover. According to Gower Street Analytics, worldwide box office revenue is expected to reach $34.7 billion this year, still 18% below 2019 levels.

The movie’s audience demographics also reveal why the theatrical results may not tell the whole story. Data reported by Deadline showed that children under 12 accounted for just 4% of opening-weekend viewers, while audiences over 35 represented 57% of ticket buyers. Those over 45 years old, many of whom grew up with the original 1980s cartoon and toy line, made up 36% of the audience. Unlike family-oriented hits such as The Super Mario Bros. Movie and A Minecraft Movie, Masters of the Universe primarily appeals to nostalgic adult viewers.

The film’s ending also leaves the door open for future installments. By introducing He-Man’s long-lost twin sister, Princess Adora—better known to fans as She-Ra—the story establishes a pathway for further expansion of the franchise. Director Travis Knight recently told ComicBook.com that while the movie delivers a complete story with a satisfying ending, “there is a world that exists outside the frame of the film,” suggesting additional stories could still be explored.

Amazon MGM Studios executives have also signaled confidence in the project’s broader value. Domestic distribution chief Kevin Wilson described the opening weekend as an important step in the studio’s larger strategy, saying the enthusiastic response from fans validates a distribution model focused on building awareness and engagement beyond the theatrical release window.

That approach centers on Prime Video, where Amazon views exclusive content as a key driver of subscriptions. The company has assembled a diverse slate of original films spanning multiple genres, including projects tied to the James Bond franchise, The Thomas Crown Affair, Project Hail Mary, The Sheep Detectives and Crime 101. Within that portfolio, Masters of the Universe serves as a nostalgia-driven fantasy adventure aimed at adult audiences.

Media analysts argue that Amazon measures success differently from traditional movie studios. Enders Analysis researcher Tom Harrington noted that original Prime Video content primarily acts as a draw for viewers, helping support subscriptions, rentals and third-party channel sales. Maxim Group analyst Tom Forte similarly said Amazon is willing to absorb short-term losses while building larger businesses over time, describing the company’s approach as a long-term investment strategy.

The importance of streaming is perhaps most evident in France, where Masters of the Universe will bypass theaters entirely. Because French regulations would require Amazon to wait 17 months after a theatrical release before making the movie available on Prime Video, the company has opted to release it directly on its streaming platform later this year. The decision underscores Amazon’s belief that the film’s greatest value lies not at the box office, but in its ability to attract and retain subscribers.