Pixar, Disney Delay Release Of "Cars"

Discussion in 'Current Events' started by RBMaraman, Dec 8, 2004.

  1. RBMaraman macrumors 65816


    Jul 25, 2002
    Prospect, KY
    LOS ANGELES, Dec 7 (Reuters) - The Walt Disney Co and Pixar Animation Studios Inc said Tuesday they would postpone the theatrical release of their animated feature "Cars" to June 2006 from November 2005.

    Pixar shares were down 4 percent to $87.60 in after-hours trade on Inet from a $91.06 close on Nasdaq. Disney shares were down 4 percent to $26 on Inet from a $27.10 close on the New York Stock Exchange.
    Officials from both companies said the move was aimed at profiting from potentially stronger movie attendance by kids on summer break, but analysts said it may help buy Pixar more time to find a new distributor for its films.

    "Cars," an animated road movie helmed by "Toy Story" and "A Bug's Life" director John Lasseter, is the seventh and final film produced by the successful Disney (Research)-Pixar (Research) partnership.

    Pixar Chief Executive Steve Jobs said Tuesday the schedule shift would also apply to films released after "Cars," meaning they will be released in theaters over the summer and on home video at the holidays.

    Last month, Jobs said the company hoped to replicate its success with "Finding Nemo," a summer release that became the 12th highest grossing U.S. movie of all time.

    Jobs' announcement in November that Pixar was considering the schedule change prompted Wall Street speculation that the company would postpone making a distribution deal planned for mid-2005.

    Emeryville, Calif.-based Pixar's distribution and production agreement with Disney is set to expire in 2005 with the delivery of "Cars."

    Pixar now pays Disney 10 percent to 15 percent of revenue from the films, plus a 50-percent cut of profits. Jobs and outgoing Disney CEO Michael Eisner have publicly clashed over terms for a new deal.

    Jobs admitted then that he wanted to see how the "musical chairs" affecting the heads of several major studios would turn out before committing to a new partner.

    Disney spokeswoman Heidi Trotta said Tuesday that the two studios were not in talks over a new distribution pact.

    "This is about moving a summer movie to summer," she said.

    Analyst David Miller of Sanders Morris Harris said the shift shows Pixar needs more time to find a new partner.

    "They're going to sugar-coat it and say, 'Well, this is going to play better in the summer,' but that's only a quarter of the story," Miller said.

    The schedule shift also will mean that Pixar will have only the DVD release of "The Incredibles" on which to peg its financial performance in 2005.

    Fulcrum Global Partners analyst Richard Greenfield called the move "not terribly surprising" but predicted it would pressure Pixar's stock price.

    "We are surprised that Disney was interested in pushing out a very important part of its fiscal '06 earnings," Greenfield said.

  2. rosalindavenue macrumors 6502a


    Dec 13, 2003
    Virginia, USA
    Don't forget another, more obvious explanation-- maybe the movie needs work. The "Cars" trailer shown before "The Incredibles" made it look horrible-- an unfunny scene between a talking redneck truck and his pal with bugs on their windshield, followed by an interminable scene of a nascar-like race. It doesn't give any indication of the usual standard of Pixar writing. Pixar is 6 for 6 so far; if it takes a little longer to get to 7 for 7 I'm all for it.
  3. jayscheuerle macrumors 68020


    I agree

    Very underwhelmed by the preview, but they've certainly earned the benefit of the doubt. Guess we'll see... IN A YEAR AND A HALF!! :mad:
  4. Chip NoVaMac macrumors G3

    Chip NoVaMac

    Dec 25, 2003
    Northern Virginia
    I disagree

    I liked what I saw in the preview. The delay may be about some fine tuning. I think that it is more about the movie really being a summer type of film like Jobs said.
  5. BornAgainMac macrumors 603


    Feb 4, 2004
    Florida Resident
    I hated the preview. Perhaps a lot of people complained. Could be the real reason. I don't know.
  6. craigdawg macrumors 6502

    Mar 8, 2004
    I think Gary Numan's holding things up. Royalties and such. ;)

    (If you're old enough to get that, pat yourself on the back.)
  7. wdlove macrumors P6


    Oct 20, 2002
    It seems that Steve Jobs has decided to slow release of movies. Has a nice ring to it, since he has taken the same trend with Mac OS X realizes. When something is done right it takes time. Money doesn't seem to be an issue either way.
  8. rosalindavenue macrumors 6502a


    Dec 13, 2003
    Virginia, USA
    Amen. I couldn't believe that song wasn't part of the trailer.
  9. jared_kipe macrumors 68030


    Dec 8, 2003
    It isn't only Cars, remember last year they were showing the trailer for the Polar Express. I can't believe they show previews on work we won't see in over a year. And the saddest thing (at least for Polar Express) I thought at the time, man this animation is rough... oh it's gonna be so much better in a year... and now...... man this animation is rough...
  10. echeck macrumors 68000


    Apr 20, 2004
    Boise, Idaho
    Remember...there's a difference between an actual trailer and just a preview. The trailer is specifically designed to show you the direction of the movie and convince the viewer that s/he wants to see the film. A preview is just that, a preview, nothing more than a "Here's a sneak peak at what we're working on".

    As far as the above article, I think it's both the fact that this is most definately a summer flick, and that they're buying some time to find a new distributor.

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