Pixar Animation Studios has captivated audiences around the world with its innovative computer-animated films for over 25 years. From humble beginnings as a small research team to its multi-billion dollar acquisition by Disney, Pixar‘s journey has been filled with groundbreaking technology, memorable characters, and plenty of drama.
Origins at Lucasfilm (1979-1986)
The story of Pixar begins in 1979 within George Lucas‘ visual effects company Lucasfilm. A team led by computer scientists Ed Catmull and Alvy Ray Smith was tasked with researching digital imaging and animation. Dubbed the Graphics Group, they wanted to move past traditional hand-drawn cel animation and develop computer-generated imagery with greater flexibility and efficiency.
One early goal was improving special effects for live action films – Lucas let the Graphics Group create the "Genesis Effect" sequence for Star Trek II: The Wrath Of Khan in 1982, their first major contribution to Hollywood. But Catmull, Smith and animators like John Lasseter yearned to push computer animation even further. In their spare time, they produced innovative short films mixing digital and hand-drawn techniques.
Despite their passion, the Graphics Group remained a money-losing endeavor for Lucasfilm. By early 1986, Lucas was facing significant financial challenges from issues in his personal life and the recent box office struggles of films like Return of the Jedi. He made the decision to sell off the Graphics Group.
A New Beginning with Steve Jobs (1986)
When funding for the Graphics Group dried up, Catmull, Smith and Lasseter knew they had to act quickly to preserve their life‘s work in digital animation. Though turned down by several companies, their fortune turned in early February 1986 – none other than Steve Jobs agreed to buy the Graphics Group and turn it into an independent company named Pixar.
Jobs paid $5 million to acquire the company, laterinvesting another $5 million and owning 70% of Pixar to start. He was taken by the team‘s talent and believed computer animation was poised for massive growth in the years to come. For Catmull, Smith, Lasseter and crew, Jobs rescued Pixar and gave their animation dreams new life. Now they aimed to usher in a new age of digital filmmaking.
Struggling Years and Creative Breakthroughs (1986-1995)
Though independent and well-funded by Steve Jobs, Pixar still faced years of financial struggles. Their initial business model focused on high-end computer hardware and software products for visual effects, animation and imaging. But sales lagged as prices dropped and competition intensified. Multiple times in the late 1980s and early 1990s, Jobs pumped millions of additional dollars into Pixar just to keep operations running.
Behind the monetary troubles, however, Pixar‘s creative teams were busy at work honing their animation mastery. Short films like Luxo Jr. and Tin Toy proved Pixar could tell simple yet emotionally engaging stories using only computer animation. The RenderMan software developed by Pixar engineers offered new levels of photorealism by translating advanced 3D graphics into stunning 2D images ready for the big screen.
After near constant losses, by 1991 Jobs decided Pixar needed a change. The company would shift away from products to offer their computer animation services. Pixar struck a landmark $26 million co-production deal with Disney to create three feature films, with profits and ownership rights split evenly.
For four long years Catmull, Lasseter and a rapidly growing Pixar staff toiled away on their first feature. The result was 1995‘s Toy Story, a smash hit which stunned the world as the first entirely computer-animated film. Though Jobs had poured over $50 million to keep Pixar alive, with Toy Story‘s success, the company finally proved computer animation was the future. Pixar‘s IPO later in 1995 made Jobs a billionaire.
Sticking With Disney…For Awhile (1995-2004)
Bolstered by Toy Story‘s phenomenal reception, in 1997 Disney agreed to an even more lucrative five-film deal with Pixar for $26 million per picture. Over the next five years Pixar cranked out hits like A Bug‘s Life, Monsters Inc., and Finding Nemo to become Disney‘s most reliable source for animation blockbusters.
But conflicts simmered under the surface over sequel and merchandising rights. Disney possessed full control over beloved characters like Woody, Buzz Lightyear and Nemo. Pixar wanted more creative control and ownership regarding their successful franchises moving forward.
Renewed negotiations in the early 2000s became increasingly tense until relations collapsed in 2004. With two more films left on their contract, Pixar decided they would part with Disney for good once obligations ended. But fate had other plans in mind.
Wedding Bells with a Surprise Disney Acquisition (2006)
In 2005 longtime Disney CEO and Eisner resigned after tensions with the board over poor performance. His replacement, Bob Iger, saw reviving Disney animation as a top priority for the company’s future.
Iger realized Disney was heavily relying on aging franchises and desperately needed Pixar’s creative momentum back on their side. In January 2006 he shocked the business world by negotiating Disney’s acquisition of Pixar for a massive $7.4 billion in stock, successfully closing the deal that May.
Steve Jobs, who still owned over 50% of Pixar shares, instantly netted over $3.5 billion from the sale. Catmull and Lasseter were installed in top creative leadership roles at both Pixar and Walt Disney Animation. Pixar would remain independently operated and retain much creative freedom under Catmull.
Iger‘s bold move reunited two giants of animation, setting the stage for over a decade of massive hits from the newly merged studios. Though once contentious partners, Pixar and Disney were ready to advance computer animation together well into the future.
Continuing Magic As Part Of Disney (2006-Present)
Since Disney‘s acquisition, Pixar has continued innovating both creatively and technically over an impressive run of successful animated films. Under Catmull and Lasseter’s vision, memorable stories like WALL-E, Up, and Inside Out connected with audiences everywhere thanks to relatable characters and emotional themes about growing up.
Technologically, new animation software and RenderMan improvements pushed the boundaries for lifelike visuals in movies like The Incredibles 2 and Finding Dory. Pixar also helped Disney Animation Studios regain its fastball with hits like Frozen, Moana and Zootopia thanks to shared creative leadership.
In all, Pixar films have grossed over $14 billion total since 1995. Recent award-winners like Coco and Soul prove that almost 30 years after Toy Story first wowed the world, the studio is still churning out computer-animated stories full of heart unmatched in Hollywood today.
The Keys To Lasting Success
So what enabled tiny upstart Pixar to rise from humble origins into the animation powerhouse they‘ve become today? It started with the right mix of creative and technical talent like Catmull, Smith and Lasseter who dared to pursue a bold vision when computer animation was still in its infancy.
A willingness to take financial risks by Jobs and Disney during their rocky early relationship also paid off big as 3D graphics technology advanced to meet Pixar‘s lofty filmmaking goals.
Finally, unlike rival studios, Pixar realized technology alone wasn‘t enough. Their films always emphasized tight scripts, emotionally layered characters, and themes with crossover appeal to adults and kids alike. Add this rare blend of technical prowess and terrific storytelling across three decades, and it‘s easy to see how Pixar forever transformed Hollywood animation.
