Read the full [[Pixar case|/static/files/MBI/Module%205/pixar.pdf]] Discussion questions * What is Pixar particularly good at? * How do the capabilities of Pixar and Disney differ? |Attribute|Pixar|Disney|h |Competence|3D animation software|content creation and creativity| |Competence|Animation tools and technologies|Marketing and distribution network| |Competence|Low cost production of animation|Creative advice from Disney’s veterans| |Brand|Developing|Established| |Merchandising|Locked out|Fully owned| |Size|Small|Huge| |Founded|In 1984 as spin off from Lukas Films|| Revenue streams: # Renderman licenses # Computer Aided Animation Production System Steve Jobs realized that software licensing alone would not be sufficient and decided to move towards content creation for 3rd parties. The next step after a small animation and commercials was the first full film: In July 1991, Pixar signed a three film deal. The deal stipulated that Disney would fund the production and promotion costs and Pixar would earn a modest percentage of box-office and video sales gross revenues. Pixar’s share in the deal was estimated to amount to approximately10 – 15% of the film profits, depending on the sales levels achieved. The strangling contracts with Disney limitted Pixar's profitability.