Posted on: Friday, December 10, 2004

Pixar delays release of 'Cars'

By Gary Gentile
Associated Press

Pixar Animation Studios is delaying the release of its next film, "Cars," until June 2006 as it switches from a holiday release strategy to releasing films during the summer when more children are at home.

Pixar and The Walt Disney Co., which co-finances and distributes the films, said "Cars" would be moved from its planned November 2005 release date, creating an 18-month gap during which no new Pixar film will be in theaters.

Pixar films, such as "The Incredibles," which has already earned $226 million after five weeks in theaters, are an important source of revenue for Disney, which keeps half the box office take, plus a distribution fee. Disney also keeps half the revenue from the home video release of the films.

The theatrical release of its films also provides the largest single source of income for Pixar, which also sees spikes in revenue after the home video release of its movies and steady, although lower, income through the year from video releases of older films and software sales.

Last month, Pixar chief executive Steve Jobs told analysts that the company was contemplating a switch to summer releases in part because children are out of school during the summer.

A summer theatrical release also means the home video will be released during the holiday season, when people are looking to buy gifts.

'Cars' longs to be a summer movie," Jobs said in a statement. "We plan to finish 'Cars' on its original schedule and look forward to 'Cars' and our future films benefiting by summer theatrical releases and holiday DVD releases."

"Cars" is the last film in a five-picture deal between Pixar and Disney. Pixar is already working on its next, as yet untitled, film, set to be released in 2007. The delay gives Pixar more time to negotiate a new distribution deal with another studio. Likely contenders include Warner Bros. and Twentieth Century Fox.