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Disney-Pixar vs Dreamworks | Battle of the Bugs | 2

2023-02-22

It’s 1995 and Pixar’s Toy Story is just months away from release. But as the premiere of the first computer-animated feature nears, all-out war breaks out between Disney and DreamWorks.

Jeffrey Katzenberg raids Disney’s talent to build DreamWorks’ animation studio. Disney rearranges its releases schedules to undermine DreamWorks’ movies.

And as Disney and DreamWorks’ tit-for-tat battle intensifies, Pixar will get caught in the crossfire.

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Hey by members. You can be in jail for episodes of business wars, disney, pixar, verses, dream works, ad free on amazon, music, download the app today summer nineteen. Ninety five burbank california disney estimation, sheep, Peter schneider glares at the artist standing in front of him, the guys just walked into his office and handed in his resignation. You're going to dream works, the artists looks nervous. I yeah they offered me four times the money schneider's former boss, Jeffrey Katzenberg is building a rival animation house at his new. movie, studio, dream works and he's doing it by poaching, disney's talent if is just the latest of dozens of defectors schneider space contort with rage. You are totally without honour where's, your loyalty, I'll stay view match dream off.
but they both know disney. Won't it's got. Shareholders to answer to A dream works is only beholden to microsoft, co, founder of Paul Alan, the multi billion whose funding its bid to shake up hollywood. Alan doesn't care about the money. He's a computer, geeks seduce by invitations to hang with glitterati schneider points at the door out get out. schneider's slumps in his chair, the artist fleas. He knows this can't continue dizzy must increase salaries if it wants to keep its talent, but that will send the cost of making animated features. Sky high or picks up his bone and cause disney ceo, Michael eisner, michael another ones, just quit, schneider holds the receiver away from his ears. Eisner rance for years.
he's had a stranglehold on feature animation, no studio air challenge it. But now eisner, as former underling katzenberg is laying siege to disney castle but eyes is not afraid now That's an burg wants a war he's more than willing to oblige by strangling dream works at birth, from wondering. I'm david brown- and this is business
on the last episode, Jeffrey Katzenberg, led disney animation into a new golden age. Pigs are safe, always story from cancellation with a last minute overhaul and did Boss, Michael eisner, fired katzenberg for his hubris now, Katzenberg watch revenge, he's using his new studio dream works to assemble animation army to storm the magic kingdom that he not the only one plodding against the house of mouse. This is episode to battle of the bugs you don't audible offers an incredible selection of audio books across every genre, plus the newly included selection of titles gives all members to discover new favorites and new formats, like the exclusive words in music series or podcast attire. I've had my eye on its called how to talk to anyone. We wondered about that magic quality that makes some people instantly loved and respected
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fix our technology guru, ed cat, mall and creative, cheap john lassiter, look startled. They think jobs must be joking, but he's not. We need to take pixar public cat mole thinks that's. crazy toy story will be the first computer animated movie. No wonder of how audiences will react steve. We shall wait till we done to movies. If we have a track record will raise more money. Job shakes his head now. Now is the time, let's assume toy stories, a huge success which it will be. When that happens, Michael eisner will realize he's help pixar become a rival to disney animation, you'll want to renegotiate our contract to keep us under the disney umbrella and stop us from going to another studio, lassiter interjection. How can you be sure it's what I would do when the renegotiation happens? We want half the profits from our movies. Our existing share is too low for pixar to be viable.
Jobs begins pacing the room, but disney will only accept that if we co finance our movies, since each of our movies will eventually cost more than a hundred billion dollars, banks in private investors are not an option. They will put up that kind of money there or we go public is the only way to raise the money. We need to get what we want from disney cadman nods. He gets a logic, but lashers wary we'd have to answer to wall street we'd have pension funds telling us what to do creatively. If that happens, I'm gone jobs stops pacing. I will never ask that of EU john nothing changes. I will still be the majority stockholder, I'm not surrendering control.
Lasted, believes him when job seated control of apple he got fired. Jobs won't risk that again, cat mole poses a question. So, what's our pitch to investors, the toy story will be a blockbuster, No, we are building a company, not a movie. They get to buy and wood. Kind of entertainment company, and that's why the ip oh will happen the week after toy story opens. Cadmus goats He knows that's a dangerous strategy, it twice or a dozen deliver big on its opening weekend. Pixar ip, oh we'll tank, but first pixar has to finish toy story. October, ninety ninety five los angeles his office on the universal lot dream works. Cofounder Jeffrey Katzenberg opens another kind of diet coke as he raises it to his lips. He sees a familiar things.
You're in a hawaiian shirt standing in its door, John lassiter, pixar, creative, cheap, gets in burg springs to his feet. John. What are you doing here. Lasted. Are moves in arms outstretched and embraces Katzenberg, I'm doing postproduction on toys story. So I came to say hi. How are you lassiter releases katzenberg from his bare katzenberg repossessions his glasses, I'm doing great john, but I'd be happier if Michael eisner wouldn't screw me out of my two percent lassiter smiled troops, the feud between Hats in bergen disney, ceo, his intensifying katzenberg owed two per cent of profits from every disney movie. He worked on a asylum worth more than one hundred million dollars, but eisner refuses to pay it. Katzenberg senses lasted hers. Unease! Sorry, John, is just
that kicking me out a disney wasn't enough for Michael. He wants to hurt me to kill dream works, but you wait our first animated movie, the prince of egypt, will a stout you. You know that what Steven Spielberg said we should do the story of moses. I just thought yes, I'm gonna make it the best hand drawn animation ever made anyway. What about you? What what's next for pixar lassiter space, brightens we're doing a twist on the fable of the ant, the grasshopper, where the grasshoppers are like a motorcycle gang who terrorize the ants into giving them food. So the ant seek help from bigger bugs but hire a cowardly circus troupe by accident. Katzenberg raises his eyebrows, an ant movie. Ye bowl right, Katzenberg, leans, forward, yeah when's it coming out. Oh, it's a ways off still
if you've got a release window right, latter's surprised at cats and berg's interest, but sees no harm in being open. Katzenberg is an ally if it wasn't for him storied, never would have happened well, disney's thinking thanksgiving. Ninety eight katzenberg stays poker faced, but inside he's raging november nineteen. Ninety eight! That's when the prince of each de slated for release. He feels this can't be coincidence. Eisner must be planning to use picks hours, aunt movie to bury dream, works first, animated feature at the box office lasted checks. His watch- I should run toy story, will finish itself. The great to see you yeah Johnny was talk soon after lassiter leaves Katzenberg opens his desk drawer, the one that's full of scripts. He pulls out us
ripped it's been in his maybe pile for months and places it on his desk. The scripts title is ants with a z and its path into production. Just got accelerated a few days later. Toy stories finished and disney marketing machine kicks into overdrive, disney world holds daily toy parades, the disney channel airs tv specials, burger king start serve toy story, meals and woody in appear on sweet, tarts, candy boxes. When toy story, opens on november twenty second ninety. Ninety five, the buzz is it fever pitch audiences rush, the theatres, but it's not the high tick animation, detracting them. It's the story. Pixel movie delights. Kids Also entertains parents who have long had to endure rather than enjoy children's animation
boy story, grosses. Twenty eight million dollars in three days, it'll, eventually make more than three hundred sixty million at the box office worldwide, making it the third highest grossing animated movie of all time after disney's the lion king and aladdin a week later, pixar goes public. And raises one hundred forty million dollars. It's the biggest. I of the year and makes jobs a billionaire a decade after being fired from apple jobs has proved he's no one. He had one pixar, the leader in the new frontier of computer animation, but that has shown. The computer generated movies can make millions dream works once in two. early december. Nineteen. Ninety five dream works offices, los angeles in
room. Coral Rosen doll hopes his fifteen year. Quest for a movie deal will soon be over he's the blonde hair co. Founder of pity I, like pixar his silicon valley company, is a computer graphics. Pioneer over the years it's computer wizardry has made the pills, buried, dough, boy, dance and helped batman perform physically impossible stance in batman forever. Now, with toy story, making me its pd. I wanted to make its own movie. In the past week. Rosen dolls pitched We established studio in hollywood, now he's hoping to get to so tones youngest studio, dream works interested to our other ideas. Gargoyles, it's about gargoyles, coming life dream work. Producers sandra ravens, looks nonplussed she's, a katzenberg acolytes who followed him from disney to dream work,
and he wants her to assess whether pity I could be dream works way into computer animation. How much will these movies costume egg about twenty million ravens narrows her eyes. Nope now cost a lot more than that. Rosen doll smiled well, pixar just went public and I read the filings toy story, cost them twenty million. So I'm in the right, ballpark. Ravens glares at rosen doll? He clearly hasn't done his homework at disney. I was the producer of twice story and I was responsible for the budget. You were oh, I didn't know so I know that movie cost far more than twenty million. Ah so I'm in egypt for the rest of the year doing prince of egypt work so we'll get back.
the new rosen doll doesn't want await warner. Brothers is pushing for a deal with pity I before the new year, but of dream works bites pd. I could play the two studios off against each other to get a better deal Well, we are talking to other studios. So if your interested it'll be great, if we could, let us know before new year's yeah nice try, Carl, but, like I said after the new year. rose, doll leaves convinced he's blown it with dream works at least warner still came, but in the weeks that follow warner presents PD I with a deal. It doesn't want to rosen doll he'll trapped, but then dream works calls it wants to work with pity. I.
Dream works, offers pity. I a choice of two movies to create. The first is shreck. It's based on a six page children's book about an ogre that marries an ugly princess with help from a donkey, the other up, This adds a movie about a nonconformist aunt living at conformist. Colony chooses ants better still struggle with lifelike, skin and fur there. Much better and anime flat surfaces like plastic toys or the x those skeletons of insects in favour, where a nineteen ninety six dream works, buys forty per Aunt of pity I and puts it to work on ants the official release data spring? Ninety? Ninety nine but Katzenberg offers pd big incentives if it can get the movie done before pixar rival, aunt movie, but while dream work,
repairs to strike disney and pixar are clashing over whether their alliance Revive love can take many forms. Love can be the comfort you feel around the person. You call you saw me or the heart pounding thrill of passionate tryst with a mysterious. Stranger from wondering. True love is a fictional series of scandalous love stories, ranging from sultry to lustful funny to heartbreaking, with each episode, you'll bear witness to another instalment of an epic love story that can only be discussed,
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If the nerve of pixar chairman steve jobs, fifty percent, you want half the profits at. Yes, that's the price. If you want our next five movies that and equal billing to disney and promotions a steve, I'm open to increasing pixar share profits, but we're not going to pay your bills and give you half the money on top. Nor should you pixar will pay half the production costs are movies will be pixar, disney co productions steve the way this works is pixar makes movies for disney. That makes them disney movies abs, stares into eyes and ears eyes. If you reject our terms, we will go to another studio and disney will still own the rights to toy story and pixar is next to features with or without you we'll keep making toy story movies, but behind the bravado islanders warming to jobs proposal,
jobs plan assumes pixar will keep making heads but eisner knows movies or a hit and miss business. eventually, pixar will create a flop, but if pick sars sharing the cost disney, will lose a lot less when that dud happens, eisner calculates that under jobs proposal disney, can only lose money if a pixar movie makes less than seventy million at the box office and oh disney movies, perform that badly. Since nineteen eighty eight but there's no way eisner is going to get jobs. What he wants today he's only going to roll over after making jobs by two thin nail foreign, while they haggle dream works, closes in spring. Ninety. Ninety,
los angeles in his office, dream works, cofounder, Jeffrey Katzenberg ends his latest phone call and buzzes his secretary on the intercom who's. Next John lasseter is on the line. Okay put him through John. How are you are you stealing? My idea, Katzenberg is taken aback. Lesser is usually a placid guy john, I dunno what you're talking about. I told you about our ant movie and now I hear you're making one where'd. You hear that rumour lassiter heard it from coral rose and all the co founder of pity. I do. Animation, studio, making ants for dreamworks pixar npt. I are tight in the eighties. They used to co host parties at computer, graphics, conferences, but last hitters not about to reveal his source. Is it true yeah it is
How could you we're not stealing your idea, John. I had the script for ass long before you told me about your movie. I don't believe you well admit I did speed up production after we spoke, but look this isn't personal. You have to understand needs. Releasing your movie on the same day as the prince of egypt Its using your movie to destroy my movie, its appalling behavior, but I can't let that slide. I do want to hurt your movie. John. I just want is needed change the release date you get. There Don't you John there's a moment of silence, then lassiter replies, you Jeffrey you katzenberg blanks shock. He's never heard lassiter swear before, but there's no going back now the battle lines or drawn a box office showdown beckons
but while the two rivals race to make their love movies, pixar is bulking up. in February nineteen. Ninety seven pixar in disney revise their deal. Pixar will now make a There are five original movies for disney, starting with a bugs life pixel and disney will share the profits and production costs. Each move. Will be promoted as a disney pixar production, but disney alone. The right disney also convinces pixar to make us straight to video sequel, to toy story, but by night, ninety eight pixar as having second thoughts. It worries that are made for video movie will hurt its brand, so it persuades disney to upgrade toy story too, to a full, theatrical release, but just weeks later, disaster strikes.
february nineteen. Ninety eight pixar offices point richmond toy story to associate technical director, Larry cutler, squint, citys, computer ha, that's weird, his colleague or in Jacob, turns to love. What is I just refresh the woody file folder and there's, like only forty files, It should be hundreds here, maybe refresh the directory again. Cutler does in the number of files shrinks from forty to four he refreshes again, and a message appears director in valid copper and jacob look at each other countries, quickly, checks and other you're the one holding the data for rex ham and MR potato head the files appear. Then he refreshes the directory and rex disappear, then, MR potato, head jacobs, eyes widened
he's just realized, what's happening, hundreds of pixar employees work on these files and to make life easy, speed restrictions on what they can do. They can then delete entire folders If someone uses a delete command in the wrong place, they could wipe everything. Jake grab phone calls the server room tower, pulses through his body as he waits for an answer within Repassing second toys we too is being raised, Two years of work is about to be lost, systems administrator answer the phone, while the plot and toys way to his master machine. What are you now pull the plug pulling? My point: why? Please, god just play now. The anguish in Jacobs voice spurs the system's administrator into action, but shutting off server isn't as simple as flicking the switch
Europe's hangs on the line for what feels like an eternity. Finally, the guy returned to the phone is done Jacob and the rest of pig, hours, tech team, spend the next few hours assessing the damage its bad just ten percent of toy story to remains so they go to the backup tape, but the backup still failed months ago, and no one noticed toys ray two's gone and there's no choice it's a finishing the movie in time. For its schedule, release in nineteen, ninety nine all seems lost, but then a team member who recently had a baby remembers she copied ray file over to a workstation at her home so that she could work at home while caring for her newborn she and Jacob race to her house and drive the workstation back to the office. The fate of a one hundred million dollar movie hangs on the data. It holds a booted up and find some
thousand files are still missing, but most of the movies there, Toy story to has survived for now, but as that my story to crew repairs, the damage, high Looms for dream, works and pick sars bug, movies, Jeffrey Katzenberg, hope ants would make disney back away from attacking the prince of egypt, but it didn't so. He moves the prince of each from thanksgiving two december. Ninety ninety eight, but disney mediately rescheduled, its movie mighty Joe young, to open the same day. So Katzenberg goes nuclear In june nineteen ninety eight he brings forward answers release from spring nineteen, ninety nine to october eighteen. Ninety eight now ants will inner movie theatres before six hours, a bugs life,
the move, enrages steve jobs. He can't stand the idea that pixar now looks like the copycat. He starts bad mouthing ants in public disney pleads. them to stop talking about the rival movie that he won't listen. He occur his dream works of copying, pixar dream works. Pr chief suggests jobs takes a chill pill on october. Second, nineteen. Ninety eight, as the two right a sling mud at each other ants. opens in cinemas across amerika to friend the cook, If one was a soldier for the lord of the earth, one was a worker handling. Dirt is not my idea of rewarding career switch places with me now they're trading jobs. Nobody told me digging with so much fun. Switching lives. I am proud of send you into battle. and getting into the swing of things
freedom of religion in its first weekend, ads el seventeen million dollars worth of movie ticket is the asked opening for an october weekend in us cinema history and shows pixar, isn't the only one capable of making computer animated hit but dream works rush to beat pixar to the movies, came at a cost. celebrated release gave dream works little time to maximize its marketing push. The ants toy line is in complete when the movie opens and many put sure promotional partners passed on the opportunity due to the tight timescale, but disney's got no such problems, a bugs lie, His back with fifty million dollars of marketing deal, there are bugs lie, theme nicely, chocolates, mcdonald's, happy meals, mattel toys, chevaler lay sponsor ball shows and on november twenty fifth, nineteen? Ninety eight, a bug
life swarms into the nations theatres from the creators of toy story hide my bank. Why? Mary? Oh by company many of your proportion of vienna, lady bygone american men from disney and pixar, don't look alike, in its opening weekend, a bugs life makes. thirty three million dollars crushing ads and proving that toy story, wasn't a flute, a bugs. Life will go on to make more than three hundred fifty million worldwide, more than twice as much his aunts, pixar, wins the battle of the box, but dream work is now established as its foremost rival in computer animation, but for Katzenberg adds, isn't the main event. December eighteenth nineteen. Ninety eight los angeles at the better,
hills, hotel dream works is throwing a party to celebrate the launch of the prince of each and every katzenberg beams as he opens another bottle of champagne belong now until his distribution chief starts to call in the first reports of how them he's doing at the box office. The prince of egypt is dream, works. Flagship animation. It cost seventy million dollars to make and katzenberg believes will be a watershed moment in animation. He also hopes it'll, show everyone that dream works can bear disney in hand drawn animation. The party goes quiet, as the phone rang katzenberg bounds over to answer it Jim. You got the first figures Everyone holes, their breath is katzenberg, listens before replacing the receiver okay, so that takings are below expectations, but remember that
east coast religions, not so hot they're just wait until the mid west data comes at the party resumes but as more results come in the mood sours fast. The prince of Egypt is falling are short of expectations. Katzenberg is crushed. Not only does dream works, look set to lose millions, but he will get to lord it over Michael eisner. Today. Dream works is, and the only one basing bad news because over it pixar Creative chief, John Lasseter has finally taken a proper look at toy story two and he doesn't like it at all. For the seventh year on the code, switch podcast conversations about race and identity go way beyond the day's headlines, because we know, what's part of every person, is part of every story: we're bringing that perspective with new episodes. Every week, listen on the code switch podcast.
And pr june eighteen. Ninety nine in the drc, wave his home, a pixar animator secures infant in the car seat in his the road as he joins the interstate, he knocks back some more coffee to fend off the exhaustion for six everyone. It pixar is worth one hundred hour weeks. The crunch began and when creative, cheap, Jain lassiter decided toy story to wasn't good enough. But with a marketing deal for the movie already locked down delay the release wasn't an option so instead of settling for second best pixar decide it to rework the whole movie in just nine months, now. This animators days bleed into each other life
a haze blurred, commutes and countless hours at the computer screen the animators heart sinks. Is the rail crossing barriers block. His pat pixar offices are just over the tracks, but this train will add another ten minutes to his commute time that neither he nor pixar can afford despair, Few hours after reaching the office, the animator drops by his wife's desk. She also works at pixar, but when, in early to get ahead, hey hey doing you now tired my handwriting expert. Today Both daycare go the animators baseball's. He forgot about day care there baby still car boiling in the summer heat the parents. employees race to the car, carrying bottles of cold water. They opened the car door. The heat inside is intense
babies, unresponsive but breeding they poor. Water over the infinite call for an end to the infants okay, but it was a close call pixar fuller cracking, they barely see their families. A third of them have report, the distress, injuries and there still, months of relentless work. To go against the odds, pixar meets the deadline. Toy story to becomes pixar is biggest movie yet the team fields vindicated, but it very nearly broke the president s cat mould aside pixar, can never again ask this of its people, even If they're willing to do it, so he acts boys must now give management approval to work more than fifty hours a week. Scripts must be locked down more titan
before movies inner production to reduce the risk of extensive last minute overhauls an pixar next movie monsters incorporated is delayed until two thousand one by dream, works fails to capital as on pixar absence in february, two thousand dream works really Is another hand drawn animated feature? The road well Dorado added bombs with two disappointments in a row. Jeffrey cat, burke slashes jobs at dream, works, animation studio and then the generous salaries he used to poach disney talent. He also Eyes pity I, the company, that produce dance Ensure dream works, remains competitive in computer animation, but he's not ready band and traditional animation. Its first love
sure it still has a future, but dream works next. Animated movie will challenge that belief. May two thousand one con film festival, france in a dark and movie theater katzenberg wonders if his big gamble is about tobacco next week, dream works releases, its second computer animation shrank and build interest. He's entered it for the palm door, the most prestigious prize in movies. After an oscar now he's having doubts, the khan out or hard to please. Maybe they are not ready for shreck snarking attitude. Toilet humor and sly digs disney, but it's too late. Now the lights go down and shreck begins a few seconds in shreck jumps into a bog and farts bubbles. In a dead fish rise to the surface
No one laughs, Katzenberg sink slower in his chair. Eight minutes in He wants to crawl under his seat, none of the jokes or landing, but then somewhere at the back of the theatre. Someone those who then there's another laugh. The icy crowd is thawing soon shreck in his psychic okey will have the whole theatre laughing movie ends. Shreck gets a stir. having ovation into sight of what's to come. Shreck, becomes dream, works biggest movie yet it makes almost half a billion dollars at the box office and a shreck thrives disney suffers. Two weeks after shrieks release disney releases, its latest animated feature, Atlantis the lost empire
the audience is still flocking to see. Shrek, it's met with a lukewarm reception. After six years of trying, cats and berg's finally landed a punch on disney, but pixar is still ahead in november two thousand and one pixel There's monsters incorporated debuted by now, the pixar brand is powerful enough to get people packing. Theatres monsters incorporated out shine shreck more than five hundred seventy million at the box office, but shreck still has a chance to even the score march, two thousand to be kodak theatre, hollywood. It's the oscars in his seat near the front captain
trying to keep his hopes in check. The academy will soon announced the first ever winner of the oscar for best animated feature in Katzenberg is desperate to win. He spent weeks at a small fortune urging academy members to vote shrek track, but pixar is just is eager to win baby than hired a consultant to mastermind their campaign. To get the academy voting for monsters incorporated. Katzenberg looks cross the tiered, where pixar team or sitting catches John lasted hers. I lassiter looks away katzenberg senses that lasted is never going to forgive him for ants Nathan lane the voice of tea mon in the lion king walks on stage to present the best animated feature award. The nominees are monsters in court.
Waited remaining from boy genius: frank, as lane picks up the envelope containing the winners name. Katzenberg crosses his fingers on the other side of the room. Lassiter edges forward in his seat and the oscar goes to shrink katzenberg springs to his feet and hugs everyone next to the fields vindicated dream works is on its way and it's getting saw a run for its money, but in the excitement he's overload the most important lesson from the oscars move! These nominated work, computer animated the era. And drawn animation is fading, vanished and. spells trouble for katzenberg plan to win by keeping one foot in traditional animation and the other in computer cartoons.
On the next episode. Disney guns, its animation studio, Steve jobs, turns on Michael Iser and dream works, suffers a dvd disaster from wonder this is episode to of dream, works, verses, disney pixar for business wars, note about recreations you ve been hearing. In most cases we can't know exactly what was said. oh scenes are dramatist, but their based on historical research. If you'd like to read more about dream works, we recommend the men who would be king by Nicole, appoint I'm your host david byrne Kristen donovan of yellow aunt media wrote this story voice by michel philippine karen. is our senior producer and editor edited, and by emily frost, designed by ryan, protested our produce there is day shilling. Our executive producers are jenny. Lauer, batman and marshalled created
or non lopez or what.
Transcript generated on 2023-02-23.