Pixar and Disney Divorce

[George Bellefontaine]

Looks like Pixar couldn't work out a new deal for distribution. I didn't save the link but read about it over at CNN Money News if anyone's interested.




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[aud19]

wow 8O

I wonder how that will effect both companies movie making? They've been able to produce some amazing pictures working together...

Jason




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[Lex]

actually, Disney's primary involvement has been promotion. They've basically used the Disney marketing machine for Pixar pictures. Disney may come back to the table yet though, vs loosing all revenue from Pixar. Pixar has basically gotten to the point they can say Disney, we no longer need you, you need us. Thus, they want a bigger piece of the pie. Can you blame them?

Warner Bros or someone will pick up Pixar, and it will be business as usual for Pixar. Or Disney may be back yet.

Lex




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[Andrew Pratt]

I wouldn't be surprised to see Universal pick them up...and frankly who wouldn't want Pixar as part of their group!

[aud19]

...and frankly who wouldn't want Pixar as part of their group!

Seems that's Pixar's view too

Jason




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[Brandon B]

Production of the movies was completely by Pixar. Disney merely "moved" and distributed them (albeit very effectively).

Basically, the deal Pixar offered was to to painful for Disney to swallow in the short term (loss of control over the existing movies' characters and such), and Disney management is not very good at thinking in the long term.

Unfortunately, it really was the best partnership for both. Pixar's people very much enjoyed the life of the movies beyond the theater, i.e. the marketing through the parks and such, and no one else is going to give them that. But I think Disney is going to be the much bigger loser here. Half the studio's revenue last year came from Nemo.

Oh well. The downward spiral continues.

BB

[Chris D]

Brandon, I was hoping you would give us some insight with this topic. I'll be interested to hear as time goes on what you think the effects are.




CHRIS
Luke: "Hey, I'm not such a bad pilot myself, you know"

[Rock Dog]

I agree with Andrew. The most likely match is Universal. That way Pixar can keep the "Theme Park" thing going. The Bug's Life stuff at Animal Kingdom is a big draw in Orlando.

I've read that CBS/Sony is very, very interested.

I believe, like so many others, that considering how much money Nemo brought in, and the stuff coming from PIXAR (go to their website to check out the new projects The Incredibles, and CARS) that Disney should have taken this offer from PIXAR. Disney's animated efforts as of late have been dismal. I mean Pocahontas, Treasure Planet and (can't remember the third most recent release) were absolutely CRUSHED by Nemo. All 3 together, didn't pull in the cash Nemo did.




-Thomas-

The easiest way to find something lost around the house, is to buy a replacement.

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[Brandon B]

I believe, like so many others, that considering how much money Nemo brought in, and the stuff coming from PIXAR (go to their website to check out the new projects The Incredibles, and CARS) that Disney should have taken this offer from PIXAR. Disney's animated efforts as of late have been dismal. I mean Pocahontas, Treasure Planet and (can't remember the third most recent release) were absolutely CRUSHED by Nemo. All 3 together, didn't pull in the cash Nemo did.

Incredibles and Cars are both under the existing Disney deal, so they will still be released as Disney/Pixar joint effort, same as Nemo.

Nemo was responsible for half of Disney Studios income last year (not Disney Company overall, "just" the studio), and Pirates was most of the remaining half. Under Pixar's offer, Disney would have given up all the rights to the characters from the old movies (TS I & II, ABL, MI and Nemo), as well as taken far less credit and cash from future productions, including the 2 upcoming. Even someone more "agreeable" than Eisner might have had to turn down that deal. Although, the terms might have been more generous if it had been someone else chairinng Disney in the first place, who knows? The 2 do not get along, that is for sure.

As for inside view on the effects, not much insight at my level or in my arm of the company. Some very interesting supposition in the NYT though, about Jobs playing hardball as part of the plan to become a media mogul, maybe even to displace Eisner as WDC CEO. Roy and Stan Gold, of recently departed Disney Board fame are making big hay out this particular "failure" of Eisner, and the rumors are Jobs and Brian Henson are being asked to speak at the next shareholders meeting along with Roy. If it weren't in Philly, might have attended to see the fireworks.

BB

[Rock Dog]

I didn't state that Incredibles and CARS were not under the current deal. My statement was meant to say that PIXAR continues to produce winners (of course the afforementioned could be flops, but one doubts this.) I meant that for the foreseeable future, PIXAR seems to be able to continue their streak of great products.

I just assume everyone knows were talking about Disney Studios. I certainly did. Which is a just a slice of a huge pie. But the animation portion wouldn't have been nearly as profitable had they not had the deal with PIXAR. I also mentioned animation by comparison. That would not include Pirates, or Haunted Mansion. Which is a whole other comparison. Pirates was a huge succes (and a great movie by the way) Haunted House? Don't know, haven't seen it. But I don't think anyone (critics, industry moguls and so on. Not so much those directly involved with the projects) expected Pirates to do what it did. Yet most assumed, based on the track record, that Nemo would be a big hit. I'm sure looking back on it, Disney Studios, and the company as a whole was much happier to have both. Regardless of the new deals structure. A few years from now, it may be painful to have the current "pirates" and not "Nemo." Is it better to have 50% of what you had, (or whatever PIXAR wanted Disney to take) or 0%? One questioned yet to answered is wether PIXAR can handle all the production and marketing costs starting in 2006.

I work for a huge international corporation with many divisions. If someone had mentioned our light trucks, I would not assume they meant luxury cars, passenger cars, or our semi-truck division as well.

$0.02

It doesn't look like investors are favorable of PIXAR's decision, given the fact that their stock has dumped about 8% since the announcement.




-Thomas-

The easiest way to find something lost around the house, is to buy a replacement.

Hey You! Make sure you stop by the HTguide Off-Topic section. It's FUN!!!

[Brandon B]

Actually only the first sentence of my post was in response to the quote from yours. The rest was just sort of filler info not directed at anyone.

BB

[Rock Dog]

I did think it was directed at me. Also as I read over me post, and thought I may have come of a little combative, even thought I threw in a couple of winks, and smiles. And that certainly was not my intention, and I would never represent myself as having a better handle on it than someone who's there everyday. Sorry if it came of that way. It's conjecture, and opinion based on what i've heard and read. I'm also smart enough to know that much of what is said and printed is done so without fact.

8)




-Thomas-

The easiest way to find something lost around the house, is to buy a replacement.

Hey You! Make sure you stop by the HTguide Off-Topic section. It's FUN!!!

[Brandon B]

I have problems parsing intent out of posts too. Probably should have read mine more thoroughly before submitting it.

Disney's stockholders didn't like it either. I think ours dropped $1 within hours of the rift.

The whole animation thing is pretty sad. One of my neighbors is a lead (hand) animator for the studio, and I'm sure he's gotta be wondering what his future holds. I often wonder about mine. The budgets for the attractions get tighter all the time, and I wouldn't be totally surprised to see our group get outsourced like a lot of others have at Imagineering in the next 2-5 years.

BB