All eyes (or should I say ears?) will be on Emeryville today, as Pixar Animation Studios holds a teleconference to announce earnings for its third quarter.
This teleconference (which will also be webcast) is expected to be chaired by Pixar’s Chairman and Chief Executive Officer Steve Jobs. And among the issues that Steve is expected to address during the Q & A portion of today’s teleconference is the current status of Pixar’s negotiations with the Walt Disney Company.
Mind you, no one’s expecting Jobs to announce today that Pixar has already forged a new partnership / distribution deal with the Mouse. In fact, given that the formal negotiation sessions between the two corporations aren’t expected to get underway until later this month, Wall Street is already anticipating that Steve won’t have anything significant to say about Pixar’s dealings with Disney. Other than to say “We’re still talking.”
But — that said — there have been several developments lately that Mouse House insiders suggest are strong indications that the Walt Disney Company has already made some concessions to Jobs. With the hope that this will finally bring Disney’s protracted negotiations with Pixar Animation Studios to a successful conclusion.
“What sort of concessions?,” you ask. Well, how about that story in yesterday’s Wall Street Journal? Where Disney reps — as they were crowing about the $40.1 worth of tickets that “Chicken Little” had sold over its opening weekend — let slip that WDFA is pushing back the release dates of two upcoming productions. With “America Dog” being pushed back from Summer 2007 to Summer 2008. While “Rapunzel Unbraided” is shifting its release date from 2008 to 2009.
“Now what’s so significant about Disney Feature Animation pushing back the release dates of two still-in-
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production films?,” you query. Well, you have to understand that one of the conditions that Steve Jobs has supposedly set for Pixar to continue its partnership with the Walt Disney Company is that Pixar Animation Studios now gets its pick of release dates for its upcoming films. Meaning that — from 2007 on forward — Pixar would get to select which release dates it feels will best suit its upcoming slate of pictures. While Disney Feature Animation would then have to settle for whatever slots are still left open.
So, by suddenly shifting their 2007 & 2008 productions out of their previously locked-in release dates, the Walt Disney Company is sending a very clear message to Steve Jobs. As in “We’re willing to concede the whole release date issue. We’ll do whatever we have to in order to finally close this deal.”
A very similar message to Pixar was just delivered by Walt Disney Imagineering. Where the Imagineers who were working on a “Cars” -themed attraction for Disney’s California Adventure were suddenly told to abandon that project. That — from here on in — WDI would concentrate its efforts on producing a robotic-arm-ride for that theme park that would be themed around the characters featured in Pixar’s 2004 release, “The Incredibles.”
“What’s so significant about the Imagineers supposedly pulling the plug on some ‘Cars’ -themed attraction?,” you inquire. Well, another term that Steve Jobs has reportedly set in order for this new deal to go through is that — from this point forward — Pixar will outright own all films that that animation studio produces.
More importantly, as a gesture of good will on Disney’s part, Jobs allegedly wants this terms to begin retroactively with “Cars.” Meaning that Steve supposedly wants the Mouse to hand over all ownership rights to this new John Lasseter movie. So that Pixar will then own “Cars” lock, stock and 4-barrel carburetor.
“But … But … But what does that have to do with a new ‘Cars’ -themed attraction going into DCA?,” you sputter. Well, yet another aspect of this new deal is that — from here on in — Pixar wants to have creative oversight over how the characters from their motion pictures will be used in the Disney theme parks. More importantly, that Pixar Animation Studios now wishes to recieve a fee every time a character, setting & storyline from one of their movies are used to help create a new ride, show and attraction for the Disney theme parks.
“But what does this fee have to do with DCA’s ‘Cars” attraction being tabled in favor of an ‘Incredibles’ ride?,” you continue. As I understand it, given that the Walt Disney Company will still co-own “The Incredibles” … The belief inhouse is that the fee that WDI will eventually be asked to pay in order to produce a ride based on this Brad Bird film will be considerably smaller than the fee that Disney would likely have to pay Pixar in order to build a ride based on “Cars.” Which is why DCA’s “Incredibles” attraction has reportedly been fast-tracked (With this robotic-arm-ride now supposedly slated to open at Disney’s California Adventure in late 2008 / early 2009) while that theme park’s proposed “Cars” -based ride has now been put up on blocks.
“But wait a minute,” you say, “Doesn’t that studio theme park next door to Disneyland Paris already have a ‘Cars’ -themed ride in the works? Some sort of spinning-teacups attraction that’s supposed to be prominently featured in Walt Disney Studios’ new ‘Toon Studios’ expansion area? So how does this new term for Pixar’s proposed partnership agreement with Disney factor into that particular project?”
Given that it’s Euro Disney SCA (I.E. The corporation that’s actually in charge of the Disneyland Paris Resort) that will reportedly have to pay this fee to Pixar Animation Studios, rather than the Walt Disney Company … Disney execs aren’t honestly all that concerned about that Walt Disney Studios addition.
The only thing that reportedly worries these executives is the size of the fee that Pixar will be expecting the Walt Disney Company to pay in order to continue operation of WDW’s “Buzz Lightyear Space Ranger Spin,” “Turtle Talk with Crush” & “It’s Tough to Be a Bug” as well as Disneyland’s “Buzz Lightyear Astro Blaster” ride & “Finding Nemo” -themed submarine voyage & DCA’s “A Bug’s Land,” “Monsters, Inc.” ride, “Turtle Talk with Crush” as well as the “Block Party Bash.”
Mind you, given that “Chicken Little” did better than expected at the box office this past weekend, Disney is going into this next round of negotiations with Pixar Animation Studios with a slightly stronger hand. So the terms and the fees that are mapped out in the above article may change quite a bit.
But — that said — in spite of their improved negotiating stance, Mouse House reps were still on their best behavior this past weekend when talking with the press about WDFA’s future plans. Want proof? Then please note that nowhere in yesterday’s Wall Street Journal article was there any mention of “Toy Story III.” That sequel that Disney exes had previously said that they wanted to put into production ASAP so that it could then be out in theaters by 2008.
For now, all talk of Disney Feature Animation producing a sequel to “Toy Story” has ceased. Reportedly because — as part of this new proposed partnership agreement between the two entertainment companies — Pixar will have the final say-so over which films get sequelized.
Please understand that these are just some of the terms & conditions that Steve Jobs supposedly wants met in order for Pixar Animation Studios to continue doing business with Disney. As to whether these terms & conditions actually will be met … Well, that remains to be seen.
But what do you folks think? Should Disney really be making all of these concessions in order to stay in business with Pixar? Or — given that animation studio’s proven track record — should the Mouse be doing everything it can to appease Steve Jobs?
Your thoughts?