Nemo’s Success is Double-edged Sword for Disney
June 5th, 2003
The success of the Pixar film Finding Nemo is both good and bad news for Disney. They are sure to make a large profit from worldwide box office, which could hit $600 million and the DVD is sure to be one of the biggest sellers of the year. However, they are in the process of renegotiating their business deal with Pixar, who currently split both the costs and the profits with Disney. Steve Jobs, Chairman of Pixar and founder and CEO of Apple, is looking to change that in the new contract. Pixar would in the future pay Disney a flat-fee for distributing the movie and Pixar would assume responsibility for all costs and profits. This is much the same way LucasFilm and Fox do business. While this new arrangement would benefit Pixar, no one is expecting the negotiations to end before a deal is done. The Pixar-Disney team is just too valuable to break up.
Since the release of Toy Story in 1995, Pixar movies have made nearly $2 billion worldwide and have earned unparalleled critical acclaim, winning numerous awards. Pixar's next film The Incredibles is planned for a Thanksgiving 2004 release.
Submitted by: C.S.Strowbridge