Pixar

Pixar Animation Studios {{nasdaq|PIXR}} is an award-winning computer generated imagery (CGI) animation firm based in Emeryville, California (USA).

Disney and Pixar

All of Pixar's major features thus far have been made in collaboration with Walt Disney Pictures. All aspects of production (writing, development, animation production, post-production) have been handled in-house by Pixar, with production costs split between Pixar and Disney. Disney has handled all distribution aspects, including all distribution and promotion costs. In 1997, after the release of their initial film, Toy Story, both companies signed a 10-year, 5-picture deal, in which the two companies split production costs and profits. Disney alone, however, retained the rights to the films and characters. In addition, Disney collects 10 to 15 percent of each film's revenue as a distribution fee. http://money.cnn.com/2004/01/29/news/companies/pixar_disney/

Related Topics:
Walt Disney Pictures - 1997 - Toy Story

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The arrangement has been very profitable for both companies, with Pixar's five feature films having grossed more than $2.5 billion. This gives Pixar the highest per film average gross of any production company. The working relationship between Pixar and Disney will end in 2006 with the movie Cars being the last joint venture between the two companies.

Related Topics:
2006 - Cars

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The main contention between Pixar and Disney began with the production of Toy Story 2. Originally intended as a straight-to-video release (and thus not part of Pixar's five picture deal), the film was upgraded to a theatrical release during production. Pixar demanded that the film then be counted toward the five picture agreement, but Disney refused.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The two companies attempted to reach a new agreement in early 2004. The new deal would only be for distribution, with Pixar controlling production and owning the properties themselves. As part of any distribution agreement with Disney, Pixar demanded control over films already in production under their old agreement, including The Incredibles and Cars. More importantly, Pixar wanted to have complete financial freedom: they wanted to finance their films on their own and collect 100 percent of the profits, paying Disney only the 10 to 15 percent distribution fee. This was unacceptable to Disney, but Pixar refused any concessions. Pixar is currently looking for a new company to distribute its films, and many other firms are eager suitors. Disney retains the rights to all films under the five picture agreement and can make sequels to them. It has begun production of Toy Story 3, without Pixar's involvement. As of July 2005, Pixar has yet to reach an agreement with a new studio. Bob Iger, the future chairman of Disney, has indicated he will resume talks with Pixar. It has also been rumored that either Disney or Pixar delayed the release of "Cars" from its original 2005 release date in order to buy time to negotiate after Michael Eisner leaves Disney.

Related Topics:
2004 - The Incredibles - Cars - Sequel - Toy Story 3

~ ~ ~ ~ ~ ~ ~ ~ ~ ~