Star Wars. The merchandise was the movie.
Star Wars made about 10 billion dollars at the box office. The merchandise made 20 billion. Fox thought it was getting the better end of the deal.
THE GIST ON STAR WARS: "A New Deal"
What did George Lucas ask for?
Fox offered him half a million dollars to direct A New Hope. He said he'd take 150,000 if he could keep the merchandising and the sequel rights. Fox had lost a fortune on Doctor Dolittle toys a decade earlier and thought merchandising was dead money, so it took the savings and patted itself on the back.
Did Lucas know?
No. He expected the film to fail. He took the sequel rights because he thought he'd have to shop the idea around other studios, and the merchandising because it was considered worthless. Neither side really knew what they were trading.
What did it turn into?
A New Hope became the highest-grossing film in history. One of the most valuable deals in entertainment history was just two people guessing in opposite directions. Over the next 35 years the merchandise grossed over 20 billion dollars, and toys outsold the films two to one.
In 2012 Lucas sold every right he traded for to Disney for over 4 billion dollars.
What happened to the industry?
Every franchise since has been built on what Lucas accidentally proved. Marvel designs characters that are built to be action figures. Disney designs characters to become dolls. The entire entertainment industry builds merchandise into the story from day one. All of it traces back to a deal where both sides thought they'd won, and one side was 20 billion dollars out. I wonder how valuable those lightsabers are now.
Would you have taken the cash or the rights?
Your take. One tap, then see how everyone else voted.
Quick answers
What did George Lucas trade for?
He took 150,000 dollars instead of half a million, and kept the merchandising and sequel rights.
How much did the merchandise make?
Over 20 billion dollars in 35 years, compared with about 10 billion at the box office.
What did Disney pay for Lucasfilm?
Over 4 billion dollars in 2012.
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