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Under the contract between the firms, Disney and Pixar share the costs of the animation films that Pixar makes and Disney markets and distributes, and Disney gets half of the profits plus a distribution fee.
In return, Disney will most likely receive a distribution fee on the movies that is greater than its current one, 12.5percentt of box-office revenue.
On top of that, each studio charges from 15 to 50percentt of the film's revenues as a distribution fee that comes right off the top and often has no basis in cash outlays.
— prints and advertising — "than he should have, and he called me and said, 'I'm not gonna take a distribution fee because I don't think I did you right.' So, for whatever anybody's ever told me about how tough Harvey is, he's been ridiculously fair with me".
On January 29th, to the amazement of Hollywood, Pixar and Disney announced that they had broken off talks to renew a seven-year-old deal under which Disney funds half of the production costs of Pixar films and receives half of the profits plus a distribution fee.
When I told him what Burkle had said about their dealings on "Our Idiot Brother," he recalled declining a distribution fee, but disputed that he had spent excessively on P. & A. "There was a hurricane on the East Coast the weekend it opened, and in light of the fact that theatres were closed, I didn't think it was the right thing for Ron to be involved in a freak of nature," he told me.
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They would pay a studio a 15% distribution fee and keep budgets and overhead low.
The expenses are high in part because they include a 1percentt distribution fee, which gives brokers an incentive to sell the fund.
Universal will receive an 8percentt distribution fee, according to a person briefed on the negotiations.
"After the success of 'Nemo,' " he said, "Disney is likely to get just a modest distribution fee".
Moreover, Paramount has told DreamWorks that it is not interested in working together beyond that unless DreamWorks agrees to pay a higher distribution fee, according to this person.
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