A troubling conundrum: Is it really possible that the better Pixar becomes, the less box office and merchandising potential its films have? However, I think the deeper story here is the pressure that comes from a public liquidity event. Pixar's profitability is a "problem" mostly because of the valuation Disney placed on Pixar when purchasing it for $9B. Selling out is not always bad, but be careful whom you sell out to, and for how much.

re: business, film, pixar, pop culture

Andy

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Adjusted for inflation, Pixar’s films have generated a combined $2.65 billion at North American theaters, a spectacular showing. “Finding Nemo” in 2003 was the high point, selling $405.6 million in tickets.

Pixar’s last two films, “Wall-E” and “Ratatouille,” have been the studio’s two worst performers, delivering sales of $224 million and $216 million respectively, according to Box Office Mojo, a tracking service. Attendance for Pixar films has also dropped sharply over the years, suggesting that ticket price inflation helped prop up overall sales for “Wall-E” and “Ratatouille.”

Retailers, meanwhile, see slim merchandising possibilities for “Up.” Indeed, the film seems likely to generate less licensing revenue than “Ratatouille,” until now the weakest Pixar entry in this area. (“Cars” wears the merchandising crown, with sales of more than $5 billion.) . . .

Perhaps Wall Street would not care so much if Pixar seemed to care a little more. The co-director of “Up,” Pete Docter — who also directed “Monsters Inc.” — said in a recent question and answer session with reporters that the film’s commercial prospects never crossed his mind. “We make these films for ourselves,” he said. “We’re kind of selfish that way.”

John Lasseter, a co-founder of Pixar and now Disney’s chief creative officer, routinely says in interviews that marketability is not a factor in decisions about what projects to pursue. Instead of ideas that feel contemporary, he aims for stories that are rooted in the ages.

“Quality is the best business plan” is one of Mr. Lasseter’s favorite lines.