OWNERSHIP AND DISTRIBUTION

Pixar has been owned, successively by: LucasFilm: (which is now owned by Disney; bought in 2012.) John Lassetter had been working with George Lucas. This period of Pixar’s history allowed the company to start developing its software programmes. Steve Jobs: Bought Pixar in 1986 for $10million. Said: “If I knew in 1986 how much it was going to cost to keep Pixar going, I doubt if I would've bought the company! The problem was, for many years the cost of the computers required to make animation we could sell was tremendously high.”

Disney acquires Pixar Disney bought Pixar in May 2006 at a value of $7.4 billion. The sale made Jobs the biggest shareholder on the board of Disney. Part of the deal was that Disney and Pixar would remain separate entities in terms of production; that Pixar would continue working in the same fashion as before (i.e. separate studios, no overlap of personnel.) However, the company would be rebranded as Disney Pixar, starting with Cars

Reasons for the merger There had been fallings out between the two companies in the early 2000s after an earlier agreement- Pixar had creative and production powers, Disney dealt with publicity and marketing- fell foul. Although production costs and profits were split 50/50, Disney made more money as they owned story rights, rights to any sequels and charged Pixar a distribution fee. Jobs began demanding a fairer deal, including a larger share of profits, with Pixar holding more rights. Disney initially refused these demands. Eventually, Disney purchased Pixar.

The benefits of ownership- Disney As a result of the merger, there were the following benefits for Disney: Access to Pixar’s technology and expertise (although staff remained separate at the Pixar studios) Pixar’s reputation with audiences- Disney had begun to be seen as old- fashioned, whereas Pixar is seen as a more modern, family friendly company. Studies have shown that mothers of young children trust Pixar more than Disney. Synergy and convergence opportunities- Pixar’s films and spin-offs and marketing opportunities make a lot of money.

Benefits of ownership- Pixar Money- Disney is one of the wealthiest companies in the world. This allows Pixar to continue developing technology. Distribution- Disney has a huge, established network for distribution of products. Established brand- Disney has been making films since the 1920s; despite its decline, it is still the most famous animation studio in the world.

Distribution Promotion and distribution for films is handled by Walt Disney Motion Pictures Studios. Until 2007 was known as Buena Vista International Inc. Established in 1953, has had more Oscar nominated films (26) than any other distributor and the most films to pass the billion dollar mark. Disney Media Distribution distributes products across TV, mobile and broadband platforms (so TV programmes and channels- such as Sky Movies etc, TV on demand- such as Netflix, apps and websites are included in this.) At present they have deals with over 1300 broadcasters in 240 territories.