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By Catholic Online (NEWS CONSORTIUM)

4/8/2013 (1 year ago)

Catholic Online (www.catholic.org)

Franchise loyalty insures profits for anything 'Star Wars'-related

Buying out Lucasfilm late last year, it appeared that the Walt Disney Company wanted to transform that company into another Pixar, the production arm that churns out one multi-million making computer animated film after the other. Their decision to ax LucasArts, the branch of Lucasfilm that produces video games, alienated some and caused many to wonder if production on another "Star Wars" movie had been scuttled. It's emerging that's probably not the case -

Disney could keep making 'Star Wars' movies for decades. The franchise so far has stood the test of time, and will continue to have a very loyal fan base as parents pass on their love for Star Wars to their kids, and those kids go on to watch the next set of movies.

Disney could keep making "Star Wars" movies for decades. The franchise so far has stood the test of time, and will continue to have a very loyal fan base as parents pass on their love for Star Wars to their kids, and those kids go on to watch the next set of movies.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/8/2013 (1 year ago)

Published in Movies

Keywords: Pixar, Walt Disney, Lucasfilm, franchise, Star Wars, Disney


LOS ANGELES, CA (Catholic Online) - Since Disney bought Pixar back on May 5, 2006, its stock has gone up by 100 percent while the S&P 500 has gone up by 22 percent. Disney spent $7.4 billion to buy out Pixar, offering 2.3 Disney shares for each Pixar share..

Pixar went on to be a big success. Every one of their films has averaged about $600 million in worldwide sales. Pixar is about to release the next movie in the "Finding Nemo" series, which grossed $880.2 million worldwide.

Pixar is trying to hit gold again with Lucasfilm, the company which was owned 100 percent by George Lucas and pioneered the Star Wars franchise.

Lucasfilm owns the "Star Wars" franchise. Disney paid $4.1 billion for Lucasfilm, half in cash and half in stock. Many speculate if Disney will be able to recoup all that money back, considering "Star Wars" has already released six movies.

The data is very optimistic, as Lucasfilm could be even bigger than Pixar. The six "Star Wars" movies have made an average of $736.25 million per movie - save the animated "Star Wars" movie released in 2008, with an average production budget of $68.6 million per movie. That means "Star Wars" was making over $650 million (not including marketing costs) per movie, far more than what Pixar was bringing in.

Demand for "Star Wars Episode 7" will be massive, as a movie hasn't been released since May 2005 and because J.J. Abrams is making it. Abrams directed "Star Trek" and is quite popular among sci-fi fans.

Disney made the controversial decision to end LucasArts, closing the video game branch of their acquisition. They also stopped the animated series from making any more episodes. Disney wants to make "Star Wars" a licensing model. While these actions angered some, it was done to keep costs down and to possibly build up more excitement for the next movie. Disney eventually hopes to churn out a new Star Wars movie every two to three years.

Disney could keep making "Star Wars" movies for decades. The franchise so far has stood the test of time, and will continue to have a very loyal fan base as parents pass on their love for Star Wars to their kids, and those kids go on to watch the next set of movies.

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