http://www.imdb.com/news/sb/2007-06-21/
The Walt Disney Co. will no longer produce direct-to-video sequels of its animated features, according to Disney watcher Jim Hill. Hill, who has had a hit-and-miss record in reporting on inside decisions at the company, said that Sharon Morrill, president of DisneyToon Studios, has been forced to step down as part of the decision to shut down the group that produces the DVD sequels. Prior to Disney's acquisition of Pixar, Pixar executives Steve Jobs and John Lasseter had publicly complained about the quality of the sequels, maintaining that they undercut the value of the original features. Disney executives had responded that the sequels had proved to be enormously successful for the studio. According to Hill, Lasseter made the decision to halt further production of the DVD sequels and fire Morrill after viewing a "work-in-progress version" of The Tinkerbell Movie, which Hill described as "an awful mess." Hill said that Lasseter complained to Disney chief Robert Iger that the movie was "virtually unwatchable." As a direct result of that meeting, Hill wrote, "some $30 million worth of animation had to be scrapped."

Disney has decided to delay next year's release of a "Tinker Bell" DVD movie that the company was counting on to drive sales of a key new line of merchandise aimed at young girls, it was reported Thursday.

The entertainment giant had been hoping Disney Fairies, introduced last year, can replicate some of the success it has enjoyed with its lucrative Disney Princesses line of dolls, clothes, videos and other merchandise, according to the Los Angeles Times.

But executives from Pixar Animation Studios, who now run Disney 's animated movies business, decided the plot of "Tinker Bell" needed some tinkering, the newspaper said.

As a result, the film, originally scheduled to release only on DVD market next fall, is being pushed back until at least 2008.

Pixar executives were tapped to turn around Disney's feature animation unit, which has struggled in recent years to turn out hits, as part of Disney's 7.4-billion-dollar acquisition of the studio early this year. Pixar's work includes such blockbusters as "Cars," "Finding Nemo," "The Incredibles" and "Toy Story."

One of the first things the Pixar executives did was to review existing Disney projects, taking an especially close look at the strength of their story lines, the newspaper report said.

"Tinker Bell" is expected to introduce new characters to pave the way for new movies and other products with the title character 's friends. Actress Brittany Murphy is scheduled to voice Tinker Bell, who doesn't speak in Disney's 1953 animated film "Peter Pan. "

It was reported that Steve Jobs, chairman of Apple Computer Inc. who swapped his stake in Pixar to become Disney's largest shareholder through the acquisition, has been a chief critic of Disney's direct-to-video strategy.

Jobs reportedly argued that Disney should make the movies better and release them to theaters, where continuing publicity would help lift DVD sales.

Jobs reportedly argued that Disney should make the movies better and release them to theaters, where continuing publicity would help lift DVD sales.