Amazon has said before that theatrical performance isn’t going to be the entire story for their films. By and large, I think Amazon is almost viewing theatrical releases as marketing for their streaming service. Thus far, it has gotten a good response on Prime, and it remains to be seen how the secondary revenue sources perform through Christmas. By and large, I haven’t seen people outright hate the film, and if the film has a nice ”afterlife“ on streaming, that might justify continued investment in the franchise. Especially since Amazon doesn’t really have anything that fits the same marketing “quadrant” that MOTU can (Disney has Marvel and Star Wars, Paramount has Transformers and GI Joe, WB has DC, Universal has Jurassic, etc)."Films" For an other Box-office Bomb he was in. Suuuure.
Besides, I don’t think Amazon has had any major theatrical hits since acquiring MGM besides Project Hail Mary.
I remember Hasbro guys telling the story of how the Small Soldiers toy line was REALLY successful, to the point Hasbro was developing an extended product range. But the line ended because the film didn’t do well. Studio really didn’t want to continue giving support for a “failed movie”. Given the changes in the broader toy and media market, we could see the opposite effect of that today, where the merch sales might well justify a sequel (even if scaled back from earlier ambitions).