To All: I received this reply from Anna at Pixar, of investor's relations:
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Victoria:
The rebates are all a part of Disney's marketing budget. I think they have spent approx. $150 million on marketing the home video -- that gets taken out of their revenues and obviously then decreases the
profit figure.
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So, it appears that I was wrong, that DIS basically is footing the bill for the rebates. Remember, though, that even with this information, Anna stated in an earlier message that PIXR gets 7-10% of the profits on the video, it seems that this marketing budget would've already been factored into the equation. The $150M is coming out of the total revenues, then, of what's left, PIXR gets ~10%. The only other thing that I know is that PIXR said that they had 21M preorders for the video, and I know that it is indeed selling well.
Stock seemed pretty stable today.
Hope this helped, and didn't confuse.
Vicki |
