Why did a DreamWorks animated feature become a surprise streaming hit after failing theatrically?

Why did a DreamWorks animated feature become a surprise streaming hit after failing theatrically?
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In short: Ruby Gillman, Teenage Kraken arrived in 2023 as a box-office bomb, grossing only $46.2 million against a $70 million budget. Despite this rocky start, the film found a massive second life on streaming platforms, eventually becoming the most-watched movie on Netflix and proving that theatrical performance does not define longevity.

Produced by DreamWorks Animation, the film follows Ruby Gillman, a shy 16-year-old who discovers she is a descendant of giant krakens destined to protect the sea from mermaids. The project originated from a 2015 pitch by screenwriters Brian C. Brown and Elliott DiGuiseppi, who drew inspiration from their own experiences growing up in Florida. After several years in development and multiple changes in leadership—including the departure of original director Paul Tibbitt—the film was released in June 2023.

The theatrical release struggled significantly, debuting with only $5.5 million in the United States and Canada. Analysts pointed to several factors for this performance, including a limited three-month marketing window, competition from major titles like Spider-Man: Across the Spider-Verse, and confusion regarding the film's target audience. It ultimately became the studio's lowest-grossing opening weekend and second-lowest-grossing film to date, trailing only 2021's Spirit Untamed.

However, the narrative shifted once the film moved to home media and streaming. After its October 2023 debut on Peacock, the movie transitioned to Netflix in February 2024. On that platform, it reached over 12.3 million viewers, topping the charts for three days and remaining in the top 10 for three weeks. This resurgence highlights a growing trend where animated features, even those that fail to capture the initial theatrical market, can find substantial, dedicated audiences in the digital space.

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