Given how popular the first two movies are, Netflix could easily move forward with The Christmas Chronicles 3. In 2018, The Christmas Chronicles resonated with critics and general streamers, and so, The Christmas Chronicles 2 was produced for the 2020 holiday season. Since Netflix seems to be especially invested in holiday films, a third installment will likely be made.
Darby Camp reprises her role as Kate Pierce in The Christmas Chronicles 2. During a family vacation in Mexico, she's tricked by one of Santa's former elves, Belsnickel (Julian Dennison), and sent to the North Pole through a wormhole. There, Kate learns all about Santa's Village, a magical community consisting of one million elves and 300,000 shops. Santa (Kurt Russell) and Mrs. Claus (Goldie Hawn) reveal that Belsnickel transformed into a human after breaking all five rules of the Elves' Code, and because Kate is a true believer, the rogue elf tries to ruin her holiday spirit by destroying the Christmas Star that protects Santa's Village.
The Christmas Chronicles 2 includes time travel, which at once links to the first film while further establishing Belsnickel as a conniving baddie. As it turns out, though, the former elf just wants to feel loved and protected, which is a story that could continue in The Christmas Chronicles 3.
The Christmas Chronicles 2 currently has a 62% Tomatometer score, which is always a good sign for a Netflix holiday film. Before making a decision about a third franchise installment, the streaming service will likely assess viewing numbers for several months in order to fully understand which sections of the movie work best (or don't). Expect Netflix to announce The Christmas Chronicles 3 sometime in 2021.
If Netflix continues with the same production schedule, The Christmas Chronicles 3 could release in November 2022. It's worth noting that the streaming service didn't officially announce the sequel until two months before the November 2020 premiere, so it's possible that the production process for The Christmas Chronicles 3 will move forward without any news releases along the way.
All of the main cast members will presumably return for The Christmas Chronicles 3. The franchise will likely continue to focus on Kate, a young character who fully believes in the power of Santa (and Mrs. Claus). Even though Dennison plays a prominent role in the sequel, his character arc suggests that he'd only return for a voice role in The Christmas Chronicles 3 on Netflix.
The Christmas Chronicles 2 concludes with a happy ending. During a time travel sequence, Kate meets a younger version of her father in 1990 Boston, and realizes that Santa gave her the chance to say goodbye. By the end, Belsnickel has a change of heart after Santa and Mrs. Claus express their love and support for him. Dennison's character transforms back into an elf, and reunites with all of his pals. Meanwhile, Kate and Jack return to Mexico and join their family for a moving performance of "O Christmas Tree" at the beach.
In The Christmas Chronicles 3, a new villain will most likely emerge. In that case, Kate will have an excuse to reunite with her North Pole friends, and may even bring along a few friends for her next trip to Santa's Village. According to Russell (via The New York Times), he views the Netflix franchise not as a group of movies but rather as continuous TV production: "We've just cyclically found our way around to making television. You go to the movies and you're seeing television because there’s a serial aspect to it."
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