Sounds like Pixar is movin' on...

[Bstanley]

Reuters
Pixar says no pressure for distribution deal

LAS VEGAS, April 9 (Reuters) - Pixar Animation Studios (NasdaqNMIXR - News) does not feel pressure to sign a new distribution deal for its films before next year, the company said on Wednesday at an investor conference.

Pixar created a string of computer-animated hits including "Monsters, Inc." under a deal with Walt Disney Co.(NYSEIS - News), which distributed the films. But Pixar said it plans to launch its first film outside of that deal in 2006 and wants better financial terms.

The studio is free to sign a new deal after delivering "Finding Nemo," an underwater adventure, due in theaters May 30.

Investors have been waiting for signs of a new accord, since Pixar said in February it had held informal talks with a number of studios, including Disney.

But in a presentation by chief financial officer Ann Mather at a conference hosted by A.G. Edwards on Wednesday, Pixar said it was not under pressure to sign a new distribution deal before 2004, allowing about two years to ready the first movie under the new deal and prepare for its marketing.

Pixar held up as a possible model the deal made by "Star Wars" creator George Lucas with 20th Century Fox studio.

Lucas pays a reported 7 percent of film gross to Fox for distribution, while Pixar currently pays Disney a fee within a range of 10 to 15 percent of gross and then splits profits.

Lucas also generally pays for theatrical and video distribution only, meaning that he retains the rights for toys and other consumer spin-offs, and has the sole right to make sequels, Pixar said.

By contrast, Disney has the right to make sequels to the films produced under its current deal with Pixar, including the popular "Toy Story" series.

Sounds like Pixar has had enough 'Disney Magic'...

 

[BRERALEX]

who's last straw will this be?

It seems pixar movies was all disney had left in the animation dept. this will be baaaaaaaaaaad.

see it starts with a chicken finger and then snowballs

 

[KMovies]

Sounds like they want a better deal ... just like any successful renegotiation. Without Disney - who knows if we would have ever known about the little company named Pixar. Just like "Friends". The show made them stars and then they wanted more money. Nothing wrong with that. That story doesn't say that they are leaving Disney either. That was just your reading between the lines.

 

[Bstanley]

That story doesn't say that they are leaving Disney either. That was just your reading between the lines.

That's true.

perhaps I should have titled it

'Sounds like the approx. 7% of the gross and the share of the profits that Pixar was paying to Disney is movin' on...'

 

[caseymaureen]

KMovies~ Friends did make the actors stars, but the actors certainly did their part in making Friends a hit, it works both ways. IMHO Pixar deserves a new cotract with much better terms, with or without Disney. Pixar may not have made it to the big time without the Disney name, but without Pixar Disney never would have had all the money, characters, sequels, and audiences of Toy Story, Toy Story II, a Bug's Life, Monster's Inc, and soon Finding Nemo. Pixar actually makes the movies, Disney just releases them. I just don't think they deserve 50% of the profits for that. Plus, look what they've done to the Toy Story name, making all kinds of somewhat crappy made for TV shows and everything out of it. Leave well enough alone!

 

[raidermatt]

To me, the problem isn't so much whether or not Pixar moves on. Its the fact that Disney, by letting themselves become an outlet instead of the creative source, is going to be negatively impacted no matter what happens.

If Pixar does sign with Disney, certainly Disney will see a smaller percentage of the profits, and also relinquish some control of merchandising and/or sequals. Pixar will likely assume more up front risk, but from Disney's point of view, so what? If Pixar continues to make hits, who takes the risk will be irrelevant. If Pixar starts putting out bombs, Disney will have avoided the loss, but they will still not profit from Pixar's creations to the extent to which they have become accustomed.

If Pixar goes elsewhere, arguably the best animated studio in the World will be putting out films to compete with Disney.

There's not many scenarios where Disney doesn't come out worse off than they are now.

 

[KNWVIKING]

Ideally,Disney says goodbye to Pixar, then dedicates the resources to become the next Pixar. Keep all the profits.

 

[TiggerFreak]

KNWVIKING,

You really are wishing upon a star!

Sending a little Pixie Dust to help your wish.