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Disney sequels could hurt Pixar

Walt Disney CEO Michael Eisner has confirmed to Jessica Reif Cohen of Merrill Lynch that the studio has several sequels in the works to films that Pixar has created for the company. The analyst cautions that such sequels could have an “adverse impact” on Pixar. “The unproven writing and graphics quality of Disney’s work with computer-guided-image animation may have an unintentional ‘contagion’ impact since consumers may subconsciously associate these films as Pixar product,” Reif Cohen said in a report Thursday. “In addition, too many releases may fatigue CGI’s scarcity value, which has created consumer intrigue for this ‘event’ animation format.” Her comments mirror those made by Pixar (and Apple) CEO Steve Jobs. “We feel sick about Disney doing sequels because if you look at the quality of their sequels… it’s been pretty embarrassing,” Jobs said during Pixar’s fourth-quarter earnings call in February.

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