Pixar being probed by SEC

August 26, 2005 · Filed Under Blog 

The SEC is looking into the business of Pixar upon missing earnings estimates due to higher than expected returns of the hit movie, The Incredibles on DVD.

It seems kind of strange to me in this day and age where we have information floating all over the universe, that a company like Pixar who ships that many DVD’s out to stores, can’t somehow figure out how many DVD’s are flying off the shelves and how many are just sitting there waiting to be returned. With as much on the line as your publicly traded company announces earnings, it would seem imperative to do more than applying an historical percentage of returned movies in an ever-changing world.

How many people out there are competing for the entertainment dollars of Americans? How many people were competing for your entertainment dollar five years ago? I think the answer is more and more and more and more.

If you are Pixar, or any other person shipping entertainment-related items to huge stores like Best Buy, Wal Mart, Target, etc, you are going to have to start thinking of new ways of tracking actual percentages of sales vs. the number of returns.

It’s unfortunate because the way technology is moving, how long will they really be physically shipping discs anywhere in the future?

They will have perfect accounting when they zap the movie to your Tivo.

By the way, how much will Netflix cost when they don’t have to worry about shipping movies back and forth?

Comments

3 Responses to “Pixar being probed by SEC”

  1. Jim on August 26th, 2005 11:49 pm

    Oooh, pet peeve alert, Mr. Brokaw. I have A history of disliking the phrase “AN historic” anything. It just doesn’t make sense (a successful batter gets A hit, not AN hit. Sort of like a terminated mobster.)

    Back to reality- I found this one quite interesting, too. Makes you wonder about how much is wasted burning all those extra copies.

  2. FilteringCraig on August 29th, 2005 8:44 am

    The word historic can be spoken with a silent “H.” Plus, I think it is worthlessly deliberate, which I find funny, which is why I did it. Sorry to twist the knife on your pet peeve.

    Incidentally, the phrase “Pet Peeve” used to be one of my biggest Pet Peeve’s. The alliteration and the silliness of the phrase as spittle flies from the mouth of the speaker… Makes my head want to explode…

  3. Jim on August 31st, 2005 12:14 am

    I couldn’t have said it any better myself.

    Did Yogi Berra ever say that? He should have.

    Don’t be sorry, either. It’s your coloring book I scribbled in. . . Thanks for the crayon!

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