It's been a little over a decade since Walden Media acquired the film rights to C. S. Lewis's Chronicles of Narnia, and for Walden co-founder and president Micheal Flaherty, it's been an exhilarating ride—even if it has been something of a roller-coaster.

The Lion, The Witch, and The Wardrobe opened in December 2005 to a massive audience, earning more than $1 billion in box office ($745 million) and DVD sales ($332 million) combined. Critical reviews were good (76 percent positive at Rotten Tomatoes), and the franchise was off to a great start.

But then came the next two films—2008's Prince Caspian and 2010's Voyage of the Dawn Treader. Caspian brought in less than half of the domestic box office that LWW had drawn, and VDT only about a third as much. Critical ratings at Rotten Tomatoes dropped from 76 percent positive for LWW to 67 percent for PC to a tepid 50 percent for VDT, which releases to DVD and Blu-Ray this week

With the dropping numbers, we asked Flaherty if the franchise was in trouble, and if not, which of the Chronicles would be the next film? The Silver Chair comes next in the sequence of books, but Flaherty said Walden and 20th Century Fox, which distributes the movies, have mostly decided on The Magician's Nephew—Narnia's "origins story"—for their next project. (Narnia scholar Devin Brown says Lewis himself would agree with that choice; see his reasons here.)

Why do The Magician's Nephew next?

It's a creative decision in terms of what story we felt has the best opportunity to draw the largest audience. The box office has pretty closely followed the sales pattern of the books. Prince Caspian sells about half of the books of Lion, Witch and the Wardrobe, and it did about half of the box ...

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