Pixar and Disney Break Down using estimates of Incredibles ($ million)

Worldwide Box Office

Domestic Box Office 250
International Box Office 300
Total Theatrical Gross 550
Theatrical Net 263
Marketing and Distribution Costs -105 -39.92%
Disney Distribution Fee -33 -12.50%
Net Revenue to Partners 125
Production Costs (Shared Equally) -24 -4.36%
Profit to Partners 101
Pixar Revenue 63
Pixar Total Theatrical Income 51
As % of Total Theatrical Revenue 38%
Disney Total Theatrical Income 83.4375
As% of Total Theatrical Revenue 62%

World Wide Home Entertainment

Home Video Sales
Sales 551
Less Costs -109 -19.78%
Gross Profits 442
Marketing and Distribution Costs -106 -19.24%
Disney Distribution Fee -69 -12.50%
Net Revenue to Partners 267
Production Costs (Shared Equally) -52 -9.44%
Partners Income 215
Pixar Revenue 134
Pixar Home Entertainment Income 108
Disney Home Entertainement Income 176

Television
Sales 62
Disney Distribution Fee -8 -12.50%
Net Revenue To Partners 54
Production Costs (shared equally) -10 -16.13%
Partners Income 44
Pixar Revenue 27
Pixar Income 22
Disney Income 30

Worldwide Merchandising Royalties

Revenue 55
Disney Distribution Fee -7 -12.50%
Net Revenue to Partners 48
Production Costs Shared Equally -10 -18.18%
Partner Income 38
Pixar Revenue 24
Pixar Income 19
Disney Income 26

Total
Pixar Revenue 255
Pixar Total Income 199
As a % of total Income 39%
Disney Total Income 316
As a % of total Income 61%

Worldwide PPV and Pay TV Sales

Sales 33
Disney Distribution Fee -4
Net Revenue To Partners 37
Production Costs (shared equally) 5
Partners Income 32
Pixar Revenue 19
Pixar Income 16
Disney Income 12

World Wide Free TV Sales

Sales 29
Disney Distibution fee -4
Net Revenue to Partners 33
Production costs (shared equally) 5
Partner Income 28
Pixar Revenue 16
Pixar Income 14
Disney Income 10
 Existing contract OPTION 1 ($ million)
Co production Agreement
Worldwide Box Office
NA Domestic Box Office
NA International Box Office
NA Total Theatrical Gross
247 Theatrical Net
-99 Marketing and Distribution Costs
-31 Disney Distribution Fee
118 Net Revenue to Pixar
-11 Production Costs
107 Profit
59 Pixar Revenue
53 Pixar Total Theatrical Income
39% As % of Total Theatrical Revenue
84.242325440719 Disney Total Theatrical Income
61% As% of Total Theatrical Revenue

World Wide Home Entertainment

Home Video Sales
602 Sales
-119 Less Costs
482.911070780399 Gross Profits
-116 Marketing and Distribution Costs
-75 Disney Distribution Fee
292 Net Revenue to Partners
-57 Production Costs
235 Partners Income
146 Pixar Revenue
118 Pixar Home Entertainment Income
193 Disney Home Entertainement Income

Television
77 Sales
-10 Disney Distribution Fee
67 Net Revenue To Partners
-12 Production Costs (shared equally)
55 Partners Income
34 Pixar Revenue
27 Pixar Income
37 Disney Income

Worldwide Merchandising Royalties

99 Revenue
-12 Disney Distribution Fee
 86.625 Net Revenue to Partners
-18 Production Costs Shared Equally
68.625 Partner Income
43.3125 Pixar Revenue
34.3125 Pixar Income
46.6875 Disney Income

Total
282 Pixar Revenue
233 Pixar Total Income
39% As a % of total Income
361 Disney Total Income
61% As a % of total Income
OPTION 1 ($ million) OPTION 2 ($ million)
Distribution Deal
Worldwide Box Office Worldwide Box Office
NA Domestic Box Office
NA International Box Office
NA Total Theatrical Gross
247 Theatrical Net
-39.92% -99 Marketing and Distribution Costs
-8.00% -20 Disney Distribution Fee
129 Net Revenue to Partners
-4.36% -11 Production Costs (Shared Proportionately)
118 Profit to Pixar
129 Pixar Revenue
118 Pixar Total Theatrical Income
86% As % of Total Theatrical Revenue
20 Disney Total Theatrical Income
14% As% of Total Theatrical Revenue

Wide Home Entertainment World Wide Home Entertainment

Home Video Sales
602 Sales
-19.78% -119 Less Costs
483 Gross Profits
-19.24% -116 Marketing and Distribution Costs
-8.00% -48 Disney Distribution Fee
319 Net Revenue to Partners
-9.44% -57 Production Costs (Shared proportionately)
262 Partners Income
319 Pixar Revenue
262 Pixar Home Entertainment Income
48 Disney Home Entertainement Income

Television Television
77 Sales
-8.00% -6 Disney Distribution Fee
71 Net Revenue To Partners
-16.13% -12 Production Costs (shared proportionately)
58 Partners Income
71 Pixar Revenue
58 Pixar Income
6 Disney Income

de Merchandising Royalties Worldwide Merchandising Royaltie

99 Revenue
-8.00% -8 Disney Distribution Fee
 91 Net Revenue to Partners
-18.18% -18 Production Costs Shared Equally (shared proport
73 Partner Income
91 Pixar Revenue
73 Pixar Income
8 Disney Income

Total Total
609 Pixar Revenue
511 Pixar Total Income
86% As a % of total Income
82 Disney Total Income
14% As a % of total Income
 OPTION 2 ($ million)
Distribution Deal + Equity Ownership
Worldwide Box Office Equity ownership (in mn)
NA Market Capitalisation
NA P/E
NA Earnings
247 Number of shares outstanding
-39.92% -99 Price per share from market cap
-8.00% -20 Price per share from estimates PE
129 Average price per share (Exhibit 10)
-4.36% -11 Percentage equity ownership
118 Investment requirement
64
59 Disney share price
43% Number of shares to be given
79 Total shares outstanding
57% % needed to be given

World Wide Home Entertainment

602
-19.78% -119
483
-19.24% -116
-8.00% -48
319
-9.44% -57
262
159
131
179

Television
77
-8.00% -6
71
-16.13% -12
58
35
29
35

rldwide Merchandising Royalties

99
-8.00% -8
 91
-18.18% -18
73
46
37
44

Total
305
256
43%
338
57%
nership (in mn)
5900
46
141.7
20 (In 1997, 5% was bought or 1mn shares)
295
325.91
350
50%
3500

25
140
$ 2,043.00
6.85%
0.772853
 Pixar Dreamworks Animation
Five Movies (1995-2003) Eight Movies (1998-2004)
Total Revenues Average Per Movie % of total revenues Total Revenues
Box Office 1236 247 23.7% 1069
Home Video 3103 602 59.5% 2345
Television 385 77 7.4% 335
Merchandise 495 99 9.5% 224
 Dreamworks Animation
Eight Movies (1998-2004)
Average Per Movie % of total revenues
134 26.9%
293 59.0%
42 8.4%
28 5.6%