In December 2019, theater screens glowed with The Rise of Skywalker, pulling in $1.073 billion worldwide—a 48% plunge from The Force Awakens’ $2.068 billion haul five years earlier. No new Star Wars film has followed in the seven years since, sparking a deep internal shift at Lucasfilm as Disney confronts the franchise’s stalled momentum.
The Kennedy Era Unravels
Kathleen Kennedy took the helm at Lucasfilm in 2012 after Disney’s $4 billion acquisition from George Lucas. Her 13-year run delivered the sequel trilogy, Rogue One, Solo, and Disney+ hits like The Mandalorian, Andor, and Ahsoka, generating $12 billion in franchise revenue.
Financial cracks appeared early. Solo marked the first Star Wars theatrical release in 47 years to lose money, posting a $103.3 million deficit on a $275-300 million production budget plus marketing costs, after grossing $393.2 million. The Rise of Skywalker yielded just $48.3 million profit on its $593.7 million budget—a slim 9.9% return. The sequel trilogy’s $4.4 billion total fell short of recouping the acquisition cost through theaters alone, prompting questions about Kennedy’s strategy amid fandom rifts that deepened with 2017’s The Last Jedi.
A Protégé in Waiting
Dave Filoni joined Lucasfilm in 2005, tasked by George Lucas with launching its animation arm. He built Star Wars: The Clone Wars (over 100 episodes, four Emmys including two for Outstanding Special Class Animated Program), Rebels, The Bad Batch, and Tales of the Jedi.
Filoni shifted to live-action as executive producer on The Mandalorian, Disney+’s top original series with 16.73 million households viewing season one—63% of subscribers at launch—and 5.42 billion minutes streamed. By 2023, Disney named him Chief Creative Officer, grooming him as Kennedy’s heir.
The Succession Question Looms
Reports surfaced in February 2025 via Puck News that Kennedy planned to leave by year’s end. She denied retiring, saying she would “never retire from movies,” but confirmed succession talks were active, with announcements expected “months or a year down the road.”
By early 2026, her publicist arranged exit interviews, signaling final preparations. On January 6, 2026, Puck’s Matthew Belloni reported Disney would soon confirm Kennedy’s departure after 13 years, elevating Filoni to co-president alongside Lynwen Brennan, Lucasfilm’s president of business and operations.
Filoni will steer creative direction across film, TV, and other formats, while Brennan handles finances and operations. The setup echoes DC Studios’ James Gunn and Peter Safran model, separating vision from execution.
Fan Reactions: Hope and Skepticism
News ignited online debate. Supporters hailed Filoni’s Mandalorian success and Lucas mentorship as a return to core storytelling. Critics argued he over-relies on post-Return of the Jedi animation extensions, risking insularity. One Reddit commenter captured the split: “We’ve been begging for this for years, and now that it’s happening, we’re terrified.”
Kennedy leaves seven undeveloped theatrical projects—Rian Johnson’s trilogy, films from Patty Jenkins, Taika Waititi, Donald Glover, and Sharmeen Obaid-Chinoy—none scheduled. Insiders predict Filoni will cut several for focus.
Disney+ viewership plateaued at 149.6 million subscribers in Q1 2024, dipping 600,000 afterward. Andor season two drew acclaim but peaked at 721 million weekly minutes, trailing The Mandalorian’s 1.15 billion finale. Ahsoka and The Acolyte gained audiences without lifting the franchise.
Filoni’s debut film, The Mandalorian & Grogu, arrives May 22, 2026, on a $200-300 million budget, testing his live-action chops after directing two Mandalorian episodes. Success could equate to $267 million in ticket value based on season one’s reach; failure risks credibility.
Internal tensions cited Kennedy’s greenlighting of shelved projects from Johnson, Benioff & Weiss, and Josh Trank, alongside production overruns. Filoni’s rise consolidates creative control, backed by Brennan’s fiscal stability.
Wall Street remains wary, with analysts noting creative shifts alone won’t fix saturation, fan divides, or streaming declines. Lucas’s shadow looms: Filoni, his sole retained protégé, embodies animation-rooted, character-driven arcs over blockbuster volatility.
This pivot bets on Filoni’s vision to unify Star Wars amid seven film-less years, subscriber erosion, and inconsistent output. The next 18 months—starting with the announcement and Mandalorian & Grogu—will gauge if coherent storytelling and discipline can revive a $12 billion powerhouse or falter in a shifting entertainment terrain.
Sources:
Puck News, Matthew Belloni, January 6, 2026
The Hollywood Reporter, January 9, 2026
GamesRadar, January 5, 2026
Variety, multiple dates 2023–2025
Deadline, multiple dates 2023–2025
Box Office Mojo, theatrical and streaming revenue databases