The Revenge of George Lucas
Topic Product Concepts (Branding, Packaging, and Labeling)
Key Words Brand licensing, film merchandising, product life cycle
InfoTrac Reference CJ132692836
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News Story 

Filmmaker George Lucas shattered box office records with the release of "Star Wars: Episode III - Revenge of the Sith," the final chapter in the six-part Star Wars series. "Sith," the dramatic conclusion of Anakin Skywalker's tragic slide from slave boy to Darth Vader, pulled in a stunning $158.5 million during its four-day opening.

Although box office ticket sales reached a record high with "Sith," the movie's true earnings potential lies in the estimated $9 billion in toys and other products sold through film merchandising. Since the debut of "Star Wars" in 1977, Lucas has parlayed his epic saga into a financial empire, licensing books, videogames, action figures, and television shows--to the tune of over $20 billion. Consumers can find "Star Wars" Pop-Tarts, "Star Wars" M&Ms, and "Star Wars" Mountain Dew drinks at the grocer; a Darth Tater Mr. Potato Head at toy stores; Chewbacca ring tones at cellular shops; and "Star Wars" Kids Meals at Burger King.

Indeed, the history of film merchandising practically begins with Lucas. Undaunted by predictions that "Star Wars" would flop at the box office, Lucas proposed a risky deal to 20th Century Fox Studios: Lucas offered to exchange his director's fee for the merchandising rights to the movie and its characters. Fox gladly agreed. Billions of dollars later, the decision is considered one of the worst deals in studio history. Lucas is now worth an estimated $3 billion, and "Star Wars" merchandise outsells movie tickets many times over.

Questions
1.

According to the article, what personal traits enabled George Lucas to turn "Star Wars" into a multibillion-dollar empire?

2.

How has George Lucas extended the product life cycle of "Star Wars" and related merchandise?

Source Dave Clark, "For Lucas, merchandise is real force in 'Star Wars'." The News-Sentinel, (Ft. Wayne, Indiana), May 23, 2005 pNA.
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