July 5.
Lux Nation and Pixar once again shook the world of animation and entertainment with two heartwarming films that, in their own way, managed to make the public fall in love all over again. Their momentum showed no signs of slowing down. Gigantic, for instance, has been in theaters for nine days and has already caused a stir, not by relying on celebrities for voice acting or flashy promotions, but by simply doing what cinema is meant to do: tell a story.
The film is based on Jack and the Beanstalk, developed by a Disney animator who had joined the company less than two years earlier. After being let go during Jeffrey Katzenberg's departure, he ended up at Pixar, where he discovered a creative system reminiscent of Walt Disney's era—it was everything he had always dreamed of.
–I just can't believe you make stuff this cool, Dad, – said Lucas Willis, son of Luigi Willis, a member of the third animation team and one of the passionate minds—along with Henry Effede and Elijah Tompson—behind what is now a hit, raking in $39 million in its first nine days.
–Well, it's me and about 50 other people, all supported by other teams. In total, we're almost 100 people working for one or two years to create what you're seeing. I've got some talented colleagues, – said Luigi Willis.
–Mom said your movie will help us buy a house in San Jose, in a nice neighborhood, – added the boy, locking eyes with his father. He was eleven, and they were enjoying a father-son outing.
–You don't need to worry about that stuff. Let your dad handle it, – replied Luigi, knowing full well what his son was thinking. The boy just wanted his room—a space without having to share it with his two-year-old sister, who often cried at night or simply drove him crazy.
But Luigi, too, was praying the movie would break $100 million at the box office. If that happened, he might be able to ask for his bonus early and buy that small house near the Italian restaurant he liked to eat at after work. Crunching the numbers, the 70-square-meter house cost around $110,000. His bonus was $100,000, and when combined with his year-end bonus, it might just be enough.
…
Gigantic also landed as a hard blow to Disney. A fantasy film that skillfully blends fairy tale magic with mass appeal, its characters are endearing, and even the secondary roles are given brilliant motivations. There's no doubt it's a cinematic success. It joins an already strong Pixar lineup of seven 3D films, the last two of which brought in over $500 million, despite Pixar still carrying a significant debt.
–It's done, – said Michael Eisner.
–Iy is, –
What had Disney done? Simply put: they made one of the savviest investments in recent years. Since Michael Eisner and Frank Wells joined the company, they had been acquiring properties in France, Australia, and the United States, launching theme parks, and acquiring companies with complementary capabilities. Most recently, they purchased a London-based company that produces its 3D animations. And not just that—they injected enough capital to overhaul its entire workflow. For over two years, they've been reverse-engineering the achievements of Autodesk.
They succeeded, although with fewer exciting partnerships and not as many advantages. Still, a giant that cleared $300 million to replicate Lux Animation's strategy—expanding animated channels and launching new studios to release at least three animated films per year—was ready to play the long game. They restructured teams, brought in new animators, and developed alternative production pipelines to optimize animation workflows their own way—doing in eight months what Lux Animation had done in eight years.
–We just have to compete like true animation giants. We make a lot of money through the ABC network, and we make even more from our theme parks, which, on the surface, are a sensationalist wonder. At the same time, we're generating significant profits… but that doesn't necessarily increase our stock value. The hedge funds and the general public are still blinded by Lux Animation's relentless rise—not just in animated features but in every genre, – said Howard Stringer, Disney's new president and future CEO of Sony. For now, he was leading Disney and turning it into a real force. With his experience at CBS and deep background in content management, financial strategy, and operational analysis, he had done more in the last two months than Michael Ovitz had in an entire year.
–I believe we can drag Lux Nation back to where it's always belonged—under control, – added Michael Eisner, clearly pleased with how strong and direct the competition had become. Though Disney's earnings were in the red for the past year, the overall balance sheet—with billions in gross profit—told another story. Those profits had simply been swallowed by debt and the amortization of their sprawling theme parks and aggressive acquisitions, which devoured content like a black hole.
***
The Hunchback of Notre Dame is undoubtedly a film rich in history, geography, and music—though its themes have grown more difficult for modern audiences, especially for children. Even so, it still manages to enchant, telling the story of Quasimodo, a tale both tragic and inspiring—something deeper than mere rebellion.
–So it was a hit? – Anne asked Jim Gianopulos, who had just walked into her office that afternoon. She had already calculated the numbers and approved the payments from the treasury for several ongoing film productions, including projects with Regency Agents, Diamond Films, and another studio. In total, three additional movies were being greenlit for the remainder of the year, with an investment of $54 million. These weren't indie-level projects either: $15 million was allocated to an Amblin production, followed by a Marvel Comics film developed in partnership with New Line Cinema and Imaginary Forces—budgeted at $42 million, with $15 million of that coming from their fund.
The remaining $17 million was used to acquire the rights to develop Rounders, a poker movie by David Levien, anchored by the star power of Matt Damon and Edward Norton.
–There's no more money, – Anne said. –I hope you understand, I'll be sending Rachel to audit those numbers. If not her, I'll do it myself. –
Jim nodded. Everyone knew Anne was one of the toughest people in the company—meticulous with budgets, able to quote prices over the phone, and fiercely protective of operations.
He nodded again. The rule was simple—if you bribed someone, it had better be documented. Trying to get around her was nearly impossible.
–Well, then I guess I'm out of your department for now… except that I hope we reel in a big one, – said Anne. She knew the film and media business was tough, but one hit movie was all it took to make the investment worth it.
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