Difference between revisions of "M5-S5 - Case - Pixar"
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Latest revision as of 19:49, 27 August 2020
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Discussion questions
- What is Pixar particularly good at?
- How do the capabilities of Pixar and Disney differ?
| Attribute | Pixar | Disney |
|---|---|---|
| Competence | 3D animation software | content creation and creativity |
| Competence | Animation tools and technologies | Marketing and distribution network |
| Competence | Low cost production of animation | Creative advice from Disney’s veterans |
| Brand | Developing | Established |
| Merchandising | Locked out | Fully owned |
| Size | Small | Huge |
| Founded | In 1984 as spin off from Lukas Films |
Revenue streams:
- Renderman licenses
- Computer Aided Animation Production System
Steve Jobs realized that software licensing alone would not be sufficient and decided to move towards content creation for 3rd parties. The next step after a small animation and commercials was the first full film:
In July 1991, Pixar signed a three film deal. The deal stipulated that Disney would fund the production and promotion costs and Pixar would earn a modest percentage of box-office and video sales gross revenues. Pixar’s share in the deal was estimated to amount to approximately10 – 15% of the film profits, depending on the sales levels achieved. The strangling contracts with Disney limitted Pixar's profitability.
