Lawrence Levy, former CFO of Pixar, explains why building an independent animated film studio was widely considered an unviable business model in the mid-1990s.
“Because only one company in history had ever done it. That was Disney, and they had only succeeded at it for a few years, from 1939, when they released Snow White and the Seven Dwarfs.”
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More from Lawrence Levy
Insight
Levy argued with Steve Jobs to underprice Pixar's IPO
“Well, I would say that the pricing of an IPO on the financial side of a company is one of the most important decisions that it will make. And this was also a point of contention between Steve and I about how to price it. I, my thinking about it was that it's i…”
Lawrence LevyJan 2, 2019▶ 18:11a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
AssertionSupported
Pixar's 1991 Disney deal tied up studio profits for 12–15 years
“They had committed to that in a 1991 contract that they went into with Disney. That was a little bit of a Hail Mary in a way, because otherwise Pixar was perilously close to going out of business. Disney came along and said that they would basically front the …”
Lawrence LevyJan 2, 2019▶ 6:56a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
Opinion
Levy: Live action film production is a terrible business
“We learned all about the live action film business, but the live action film business is also a terrible business.”
Lawrence LevyJan 2, 2019▶ 9:14a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
AssertionPartly supported
Levy: Jobs had four hardware marketplace failures before Pixar
“Steve had had a series of failures leading up to Pixar. Before he left Apple, there was the Apple Leaser, and there was the Apple Macintosh. After he left Apple, there was the Pixar imaging computer, and then there was the next computer. So those were four pie…”
Lawrence LevyJan 2, 2019▶ 12:25a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
Opinion
Levy: Pixar had to insulate itself from studio pressures to innovate
“Sometimes creativity in Hollywood isn't all it's cracked up to be. The big studios have so many pressures. Some of our thinking back then is we have to protect Pixar from those, some of those kinds of pressures in order for it to continue to innovate and do or…”
Lawrence LevyJan 2, 2019▶ 21:01a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
Disclosure
Levy: Pixar's top decision was refusing executive interference with creatives
“So the most important decision that we made at Pixel was basically to trust the creatives and not interfere with what they're doing.”
Lawrence LevyJan 2, 2019▶ 23:00a16z Podcast | The Business of Creativity -- Pixar CFO, IPO, and Beyond!
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