Pixar announces it will not renew deal with Disney
For many it was already over, but any chances of a reconciliation were
dampened yesterday when Pixar chief Steve Jobs said that his blockbuster
animation company would not renew their deal with Disney next year.
Over the course of a 10-year relationship Disney has co-produced and
distributed all six Pixar features from Toy Story in 1995 to current
smash The Incredibles, which have earned more than $3billion in worldwide
ticket sales.
However Jobs is known to be dissatisfied with a profit-share arrangement
in which Pixar and Disney split revenues 50-50 after Disney takes a
hefty distribution fee.
Reporting strong fourth quarter 2004 earnings that were largely attributable
to the success of The Incredibles and excellent sales of Finding Nemo
on DVD, Variety says Jobs told investors it was "likely we will
not forge a new relationship with Disney beyond our current deal."
The Pixar-Disney collaboration ended in January 2004 and talks to extend
the relationship broke off, leaving Pixar free to talk to other distributors
once it delivered its seventh and final picture, Cars. Disney recently
put back the release of Cars from November 2005 to June 2006.
Every Hollywood studio has been courting Pixar, whose world-beating
stable of artists, writers and directors is akin to gold dust in a town
where critical accolades and commercial success rarely go hand-in-hand.
Under the existing agreement, Disney retains rights to distribute Pixar's
first seven films and Pixar will continue to receive earnings on those
titles. Disney is also allowed to produce sequels to any of those pictures
on its own if Pixar chooses not to take part.
Jobs indicated a decision on a new distribution partner was likely
towards the end of the year, when Pixar would also unveil its first
lineup of post-Disney titles with an eventual target of two releases
each year.
Meanwhile Disney animators are currently working on Toy Story 3 without
Pixar's input. When asked why Pixar didn't want to get involved, Jobs
told investors: "The question is: Should we fill the previous slots
in our production schedule with sequels on which we will earn only 50%
of the profits and will be forever controlled by Disney?
"Or should we fill it with original Pixar films, on which we will
earn 100% of the profits, fully own and control?"
While a reunion with Pixar is not on the cards, negotiations with Disney's
other troubled partnership, Miramax Films, have taken a brighter turn.
Recent talks to renew the contract between Miramax co-founders Bob and
Harvey Weinstein and their parent company have taken a more conciliatory
tone with negotiations set to conclude at the end of this month. The
Weinstein brothers' contract is up in September and their recent successes
such as The Aviator and Finding Neverland give Miramax new leverage
in the deal.
