The production company Disney Pixar has been criticised by traders in Wall Street after there is speculation over their ability to maximise profits.They are have been producing high quality films for many years now and but lost of people think they have lost touch with their commercial side.
This news comes after their worst two performing productions yet, WALL-E and Ratatouille. It’s not that they are failing to make money but more the fact they have strong completion to fend off, including the ever popular Dreamworks. Their new film ‘UP’ has recently been released and the criticisms of previous films have continued with this one. The overriding opinion is that there is a serious lack of marketable characters and they are not as appealing or purchasable as their previous efforts (think Mickey Mouse) or indeed those of their completion. Dreamworks have had a great run recently with films such as Shrek, Wallace and Grommit and their newest release Monsters VS aliens. These films all have talking animals or creatures that are endearing and have clear heroes and villains that lead to great merchandise sales. Toys, books, DVD’s, clothes even more obscure products such as dolls house, all go towards making up the films overall profits.The ability to market these products is what pixar have been lacking recently as a result of their story structures and character choices.
Some people have stood up for Pixar and said that it simply staying true to its craft and not selling out by producing a film just to sell goods off the back of it. They would rather be able to promote the buying of educational toys instead of cheap tacky stuff. There is however the ever present pressure being put on the company by shareholders and associated businesses to raise profits year on year.Pali Research’s Richard Greenfield has downgraded the shares of Disney to sell this month just gone, stating that a predicted high risk of commercial failure is the reason.