Monday, November 21, 2005

Pixar Asking For The World

What is Jobs asking for? Will Disney bend over for a chance to be with Pixar again? Not likely. ...continued...

In the current terms that Steve Jobs is asking for, it would be extremely idiotic for Disney to make a deal. Let's lay down what terms Steve is rumored to be asking for:

* Pixar picks their release dates.
* Pixar has more creative control of their films.
* Pixar says which films can be sequeled (if any) and gets full creative control.
* Pixar pays 10% distribution fee to Disney to market their films.
* Disney stops production on TS3.
* Pixar gets 100% ownership of previous Pixar films.

Disney is probably willing to concede on the release dates, full creative control of their future films, and maybe a distro fee of 12%. However, Disney would be completely out of their mind to allow Pixar the other terms. If you drop the production of TS3, that means you are saying you wont sequel any other Disney/Pixar films. Big mistake. Would it be worth it for Disney to lose the lucrative money from previous Pixar efforts and from sequelization for a lousy 10% distribution fee on future films? No freaking way. If Iger accepts those conditions, he should be flushed out of Disney immediately. It would be a disservice to Disney and their shareholders.

Crazy terms like this are presented as concession fodder. That way, Jobs looks like a reasonable human being when he pulls back from one of his demands.

Everyone and their mother is saying the deal is going to happen. Touting that Pixar will get what it wants. I'm going to go on record (again) saying that the deal will not happen. The potential money from TS3 and other sequels is too great. Unless Jobs reigns back his demands, Iger/Disney would have to be a complete moron to accept. And, I don't think he is.

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