Printing Money at Pixar

Pixar is the cover story in Wired Magazine this month. Like many of you, I have seen all of the films. The article does a great job of giving a look at the people behind the movies.

I was not familiar with the exact financial success of the digital animation house. The article states Pixar’s five movies (Toy Story, A Bug’s Life, Toy Story 2, Monsters Inc., and Finding Nemo) have grossed $2.5 billion dollars. Those numbers make Pixar the most successful movie house of all time.

This section explains why Pixar and Disney had a falling out:

Since Toy Story, the fate of Disney and Pixar have been intertwined. Pixar makes the movies, and Disney distributes them; they cofinance the films and split the profits. But this January, when Pixar met with Disney to discuss their contract, an emboldened Steve Jobs decided to change the deal. He’s angling for terms like those George Lucas brokered with 20th Century Fox for the Star Wars prequels: Pixar would finance its own films (with budgets around $80 million), take 100 percent of the profits, and pay Disney a distribution fee. Not surprisingly, Disney resisted. Each Pixar movie nets Disney an estimated $200 million, and under Jobs’ proposed arrangement, the company would make less than half of that.

Go check out the new trailer for The Incredibles. They are going to have another hit.