Pixar and Disney had disagreements over the production of "Toy Story 2". Originally intended as a straight-to-video release (and thus not part of Pixar's three-picture deal), the film was eventually upgraded to a theatrical release during production. Pixar demanded that the film then be counted toward the three-picture agreement, but Disney refused. Though profitable for both, Pixar later complained that the arrangement was not equitable. Pixar was responsible for creation and production, while Disney handled marketing and distribution. Profits and production costs were split equally, but Disney exclusively owned all story, character, and sequel rights and also collected a 10- to 15-percent distribution fee. The lack of these rights was perhaps the most onerous aspect for Pixar and precipitated a contentious relationship.