The integration of Pixar Animation Studios into Walt Disney "is happening better than we had ever dreamed it would," Disney Studios Chairman Dick Cook said.
Disney, which is in the process of acquiring Pixar in an all-stock $7.4 billion deal announced in January, plans to make two animated films per year after the merger is completed late this month or in May, Cook said at an A.G. Edwards & Sons conference Tuesday.
"(Integration) is happening better than we had ever dreamed it would."
"That's where we would like to be," Cook said. "Some years, we won't make that (number); some years, we'll probably have one; some years, we may have three; but we will hopefully...have two new original (films)--one coming from Pixar and one coming from (Walt Disney) Feature Animation."
Integration has been "terrific," he said.
Cook also said he expected the glut of animated films released this year--about one each month--to ease in the next year or two.
"There will be a shakeout process...we will probably hit the high-water mark...then I'm sure there will be a reduction," he said.
He said the current slate of films, which is heavy with sequels to popular franchises and animated films, should show whether box-office attendance dropped 9 percent worldwide in 2005 on the quality of films "or if...people are obtaining their entertainment in some other way."
Cook said the DVD market, which also saw a slowdown last year in sales, has been relatively firm in the last few months.
Disney Chief Executive Bob Iger on Tuesday told the same conference that he expects the company to use the Internet and other nontraditional platforms to distribute its media products.
"I remain rather sobered by the experience that the music industry had," Iger said. "The bottom line is that they were not in tune with what their customers wanted and what the world was demanding of them. And I think it hurt them significantly."
Iger said it was not clear yet when Internet initiatives, such as the company's offering of ABC television shows through Apple Computer's iTunes store and ABC's Web site, would generate enough revenue to affect earnings.
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