[Retric]

50% of a studio's output not being terrible is hardly the same thing as expecting every new movie to be a masterpiece. With studio's spending 100 million on a 'low' budget film you would expect they could spend 1 million to mock up 10 different films and pick the top 10% of scripts and fund them. Instead they use independent funding for most films which gives them far less choice.

PS: Pixar is hardly the first company to fund things internally raise the bar. You can find other studio's that used that model and produced a lot of decent films one after another. It's just that after a while the people running things don't really have a taste for talent and they can't handle the risks.