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Disney was attracted to Vancouver's location because of tax incentives, and this closure comes in the wake of British Columbia incentives falling behind those offered by Ontario and Quebec. Pixar Canada has produced a number of short films for the studio, including “Air Mater,” “Small Fry” and “Partysaurus Rex” since 2010. Pixar’s shorts have been a proving ground for new directors and concepts for the studio.^[1]

The studio was built to develop animated shorts presenting Pixar characters which would be packaged with DVDs or featured on screens through its theme parks as a skillful way to draw attention away from long waits for rides. A company spokesperson said the work done in Vancouver would be transferred to the company’s headquarters in  Burbank, California.^[2]

The Vancouver animation establishment opened with much fanfare at 21 Water Street in 2010, with a approval to produce short films based on esteemed Pixar characters. The Vancouver company worked on layout, sets and characters, animation, effects, lighting and rendering departments. ^[3]

Viewers of the animation scene in Vancouver disregarded Pixar’s departure, suggesting the industry is robust enough in the province to easily absorb the displaced Pixar workers. Unfortunately, Walt Disney Studios closed its Vancouver-based Pixar Canada studio leaving nearly 100 Pixar employees without a job just three years after opening.^[4]

When Pixar set in motion in British Columbia came the arrival of U.S. studio's such as Digital Domain and Sony Pictures Imageworks, with Pixar touting Vancouver’s talent base, proximity and shared time zone with Los Angeles and a digital animation tax credit offered by the B.C. government. Provincial Jobs Minister Shirley Bond said that it is “disappointing” that Pixar is leaving the province, however, she saw the decision as tied to the company’s overall business strategy as opposed to the B.C. business climate.^[5]

Disney, being one of the world’s far-reaching entertainment company business that had earned $1.58-billion (U.S.). Earnings increased 4.4 per cent to $11.5-billion, a bit below analyst estimates. While its large media network division saw revenue increase by 8.8 per cent, the studio arm that makes movies saw a 2-per-cent decline largely because of the whopping failure of The Lone Ranger. Disney started 2013 with an inner review targeted at discovering cost savings, specifically in the studio division which is its least profitable and has seen overlap in some of its functions since the purchase of Lucas Arts and the 2009 purchase of Marvel Entertainment. ^[6]