[Chapter 900: The Most Profitable Animated Film]
At a luxurious theater in White Venture Park, Steve Jobs stood nervously at the entrance. After all, this was the world's first fully computer-animated feature film.
The concept of a 3D engine wasn't exactly new in Silicon Valley. While various brands of 3D accelerator cards were still quite pricey, they weren't as outrageous as they had been in previous years.
A single film might not mean much, but this concept was monumental. If the future of animation started to lean this way, Disney, which held onto a hefty stock of intellectual property, would undoubtedly rake in loads of cash.
Nobody on Hollywood Boulevard or Wall Street was a fool. At this premiere, none other than William White himself showed up.
For a movie of this caliber, it wasn't usual for him to appear. Michael Eisner showing up was already a big deal. Yet here was William White, along with the top executives from his group.
"Steve, your hands are sweating. I mean, do you really need to be this anxious?"
"It's just a bit warm. I'm telling you, the air conditioning here isn't that good, is it?"
"You're joking, right? This is the highest-grade central air conditioning in the country. You think that's just talk?"
William White had no intention of stealing the spotlight, making his entrance with his entourage. Steve let out a sigh of relief but couldn't help but grumble inwardly; after all, this was his entire life's fortune on the line.
"Calm down, Steve. No animated film has ever been completed solely by a computer. This moment is unprecedented; it's practically a blockbuster worthy event."
"Larry, my friend, the pressure is immense. If this doesn't pan out, it could mean an irreversible disaster."
"Hahaha, that's impossible. William White remarked that when a hurricane comes, even cows can fly! Don't you think this film stands right in the eye of the storm?"
Steve was taken aback. Larry Ellison's words made a lot of sense. If such robust promotion still failed, he would have nothing to complain about.
The plot of Toy Story could only be described as rudimentary. Of course, this was just Pixar's ethos; they weren't like William White, who outright reworked a classic tale like Hamlet.
To William White, the plot honestly didn't matter; innovation was what truly counted. The vivid, three-dimensional animation indeed transported many back to their childhood memories.
As the theater lights brightened again, everyone stood up to applaud. At that moment, Steve was shedding tears like a child.
"Congratulations! I just heard that other theaters had positive reactions as well. You should go up and say a few words," William White said, giving Steve a pat on the back and smiling broadly. Steve would certainly make a lot of money, but so would William White.
"Thanks, you're right. I think those idiots should be regretting their decisions now."
"Hahaha, enough of that. Go greet your glory; you deserve it!"
When it came to giving speeches, William White couldn't compare to Steve Jobs. If their positions were reversed, Steve would surely have a greater impact.
It wasn't self-deprecation; it was merely the truth. If Steve hadn't had health issues, he might've gone and tried to put his own spin on the business.
Don't think this was a joke; those skilled at speaking truly garnered more opportunities. From Roosevelt onwards, just look-- the only person who seemed less eloquent was George W. Bush.
In its first weekend, Toy Story grossed $38 million at the North American box office. If global box office earnings were counted, it seemed the film had already recouped its costs.
With $70 million globally in just three days, that was blockbuster-level revenue. With less than 7,000 screens worldwide, many theater owners felt dizzy with excitement.
They struck it rich. Damn it, if it hadn't been for this particular release window. Why wasn't this a summer release? And hey, can you speed up getting those action figures over here?
American theater owners were pretty at a disadvantage. They picked on the fledglings, but when faced with Hollywood giants, they knew better than to overstep.
Although revenue shares were slim, those action figures were quite lucrative. They needed to hustle to snag merchandise from Disney.
Michael Eisner hadn't anticipated that despite increasing the order numbers, such a ridiculous situation would arise. Well, nothing to be done; they had to resort to air freight.
If they ran out of stock, he knew his boss would skin him alive. And that damn Steve Jobs; he needed to stop pushing him.
"You should be grateful, Steve. If I had put these in production in Japan, I wouldn't have made a penny by now.
"Don't worry; we're running in two shifts around the clock. I even chartered a federal plane. I've covered everything possible."
"Damn, you're making good money off this."
"Of course! If it weren't for that, why would I take the gamble? You know, the head of the toy department told me if the results were underwhelming, those toys would need to sell for a year."
Truth be told, William White thought Steve Jobs was slacking. If he were in charge, he certainly would have made a mess of everything.
In fact, Steve Jobs was starting to have some regrets. Damn, he'd agreed to this way too readily. The value of these peripheral products might well exceed the film's box office earnings.
While regretting, he was also somewhat relieved; if it hadn't been for Disney, other companies wouldn't be able to capitalize this way. Just look at Beauty and the Beast, then check out The Lion King; those guys really knew how to make money, and how to make even more money.
Michael Eisner scoffed at this lack of understanding. Did he even realize how much risk Disney had taken?
A booming box office was great to talk about, but if North America only hit a little over a billion, they might still end up losing money.
Whatever the case, if it came down to just talk, anyone could be unbeatable. Who cared about production in Japan? The young women in the factories had moved on to acting in action films. How could those grandmothers help with inventory restocks?
Re-ordering was called re-scheduling at the factory. Despite the workers being familiar, it was still a significant challenge. Each production plan needed adjustments; every raw material had to be re-ordered.
It wasn't until these last two years that the industrial chain had nearly been perfected. If someone had dared to do this a few years back, the toy factory would have collapsed.
"Alright, alright, William, tell me the timeline."
"A week. It couldn't be faster; the staff is working overtime on the assembly line. I truly can't ask for more."
"Cough, cough, fine, fine, you're right. These things should have been produced in Japan. I've decided; I have to go see that magical place."
William White ignored Steve's ramblings. He had a ton of issues to address. How much they earned from merchandise was the last thing on his radar.
However, the larger the sales volume, the more benefits Pixar would see. That way, their reports would look a bit better.
If they earned an extra $20 million, with a 10x PE, that's $200 million, and at 20x PE, it's $400 million. If the market cap increased by $400 million, that wasn't chump change.
What are investors buying? Expectations.
If you could make hundreds of millions off a film plus its merchandise, then that wasn't just pie in the sky. An estimated valuation of under a billion dollars was clearly an underestimation.
Why was Steve in such a hurry?
He wasn't actually all that concerned about the mere profit from those toys. Despite everything, Disney would take home the largest slice. For a moment, Steve actually contemplated starting a toy company himself.
Fortunately, he had other things that concerned him more. Apple was on the brink of failure. If nothing good was done, it might very well be heading to the ICU soon.
*****
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