Thursday, December 15, 2005

DreamWorks Animation, Paramount, and Pixar

DreamWorks Animation recently got a distribution deal with Paramount that must of made Steve Jobs lick his chops. As we all know, Jobs and Iger are trying to see if there can be a continued relationship between their two companies. Although it is an over simplification to say that Pixar just wants Disney to market and distribute for a low percentage fee, that is a very big part of it. ...continued...

Many (including myself) have been saying that Pixar is asking for too much and they need to back down. However, now that DWA struck this deal with Paramount to distribute for an 8% fee has got to give Jobs a case of the happies. Eight percent really is a bargain. And on top of that, Paramount basically gave $75 million cash to DWA for the right to distribute those pictures. Additionally, DWA will get the chance to promote their movies as well as collaborate on new television programming on the huge TV empire that Paramount's parent company (Viacom) owns. Nickelodeon, MTV, Nick at Nite, VH1, BET, TV Land, and Comedy Central.

In a nutshell. DreamWorks scored!

This makes me question why Paramount did what they did. The must have talked with Pixar on a similar deal. They had to be choice #1. That obviously didn't pan out, which leads me to believe one of two things. Either Pixar and Disney have worked things out and will be back in saddle soon or Pixar was demanding way too much from Paramount. For the last several months, rumors abound that Jobs animation company was asking for too much from everyone and potential suitors were leaving the table. This brings me back to what I've been saying for months.

Pixar needs take a step back if they want Disney to sign the papers.

1 comment:

Dana Muise said...

There's been speculation flying around that Disney may buy Pixar (at least a majority share) and make it Disney's animated-film division. Jobs, could become a member of the Disney board.

As the TimesUK says "If Disney and Pixar divorce, Disney gets the house"