Lucasfilm licensing article
A New Way to Use the Force
Even Without More Movies, 'Star Wars'
Has Plans to Keep Licensing Dollars Rolling In
By STEPHANIE KANG
August 22, 2006; Page B1
It took "Star Wars" creator George Lucas six feature films to tell the big-screen story of Darth Vader and his kin. But since the franchise began in 1977, Mr. Lucas has never told moviegoers what happened in the period between the films' trilogies.
Fans will get answers next year when Lucasfilm Ltd. releases a videogame based on that unexploited time in the "Star Wars" continuum. With razzle-dazzle effects, the game will be the main platform for an accompanying line of action figures and vehicles from longtime "Star Wars" partner Hasbro Inc. to be released next year. A print and television advertising campaign will precede the game launch, piggybacking on the 30th anniversary of the franchise.
It's the kind of push usually reserved for a new "Star Wars" film. Mr. Lucas, of course, has said he won't make any more of those. He does, however, plan to keep the movie's merchandising empire rolling -- a strategy that is dependent on generating new stories and fresh approaches to the iconic characters and their world.
So the new videogame is set in the period between "Star Wars: Episode III -- Revenge of the Sith" and "Star Wars: Episode IV -- A New Hope," during the rise of the rebellion against Darth Vader and the Empire. Jim Ward, president of LucasArts, the videogame unit of Lucasfilm, says players will discover new pieces of the "Star Wars" story that help fill in the blanks.
Of course, the "Star Wars" universe has long been peppered with comics, novels and other ancillary products that riffed off Mr. Lucas's films. The stable of nonmovie storylines became so big that it spawned its own moniker: "expanded Star Wars universe," encompassing everything not directly mentioned in the movies. Lucasfilm says sales of "Star Wars" merchandise topped $12 billion since its inception in 1977, about three times the world-wide box office for all six movies combined.
Lucasfilm's blueprint for successfully managing an aging movie franchise is desirable for other studios to copy, but the strategy is difficult to replicate, says Charles Riotto, president of the International Licensing Industry Merchandisers' Association. "There aren't that many properties out there that have that kind of longevity" and necessary fan base, he says.
Experts say "Star Wars" goods have shown surprising strength this year despite the absence of a new movie -- even beating merchandise from summer flicks such as "Cars," "Superman Returns," and "Pirates of the Caribbean: Dead Man's Chest." "Star Wars" is the top seller so far this year of action figures and the biggest merchandiser for boys' toys, according to market-research firm NPD Group of Port Washington, N.Y. Lucasfilm's head of licensing, Howard Roffman, says it is selling more than double its nearest movie-merchandise competitor this summer, "Cars."
Nonetheless, the sales engine is starting to slow. Last month, Hasbro said sales of "Star Wars" merchandise dropped $84.8 million in its second quarter from the year-earlier period, when the last installment of the "Star Wars" franchise opened in theaters. Lucasfilm says it licenses 10,000 products but is trimming back the assortment in categories like apparel, backpacks and bed linens.
Toy retailers like Toys "R" Us continue to push the brand, timing marketing efforts around big videogame or DVD releases. The front of the Toys "R" Us store in Manhattan's Times Square features a large presentation of new "Star Wars" toys timed to the September release of new DVDs of the original trilogy and a new videogame called Lego Star Wars II, where players can customize characters using Lego-style pieces. Toys "R" Us is rolling out a similar display in its other 600 locations across the U.S.
Still, it is clear that Lucasfilm faces challenges without a future new film driving fan interest. Industry observers say that fan interest waned during the nearly 20-year period between the first and second trilogies, something that Lucasfilm and its partners hope to avoid this time around.
To keep interest going, the company is creating a children's television animated series set during the heyday of the Jedi world, between "Star Wars: Episode II -- Attack of the Clones" and "Star Wars: Episode III -- Revenge of the Sith." In 2008, the company will also launch an accompanying toy line linked to the new characters of the series.
Then there's a nine-novel series that follows Luke Skywalker, Princess Leia and other main characters 25 years after "Star Wars: Episode VI -- Return of the Jedi." The first book, "Star Wars: Legacy of the Force: Betrayal," was released in May and spent about a month on the New York Times best-seller list.
Hasbro and other licensees like Master Replicas Inc. have expanded their line of collector merchandise, which Lucasfilm says appeals to a broader range of fans -- from children watching the series for the first time to adults who have been "Star Wars" junkies for decades. "During the original trilogy, it was strictly a kids' property in terms of who was buying merchandise," says Mr. Roffman, adding "there were no things like high-end collectibles."
Philip Wise, Webmaster of "Star Wars" fan sites theforce.net and rebelscum.com, says high-end products like $579 replicas of Boba Fett's blaster, $99 minibusts of well-loved characters and even $2,799 replicas of the Millennium Falcon that Mr. Wise recently ordered are helping maintain fan interest. Mr. Wise says he is "shocked" at the number of consumers who continue to buy "Star Wars" products in the absence of a new film.
The future success of Lucasfilm's strategy will depend on hooking young fans like Layton Malmstrom. The eight-year-old became obsessed with "Star Wars" after watching "Star Wars: Episode IV -- A New Hope" a few years ago. His recent birthday party in Phoenix featured a "Star Wars" theme and his presents ranged from toys like the new Star Wars Transformers to the latest Millennium Falcon vehicle set.
"I just decided to find out what "Star Wars" was like," Layton says. "I just loved it so much and then I got every single episode." He's since added videogames to his menagerie of more than 100 different "Star Wars" toys. He's a fan club member and an avid reader of "Star Wars" fan magazines. "I wanted to go to the next step," he says.
A New Way to Use the Force
Even Without More Movies, 'Star Wars'
Has Plans to Keep Licensing Dollars Rolling In
By STEPHANIE KANG
August 22, 2006; Page B1
It took "Star Wars" creator George Lucas six feature films to tell the big-screen story of Darth Vader and his kin. But since the franchise began in 1977, Mr. Lucas has never told moviegoers what happened in the period between the films' trilogies.
Fans will get answers next year when Lucasfilm Ltd. releases a videogame based on that unexploited time in the "Star Wars" continuum. With razzle-dazzle effects, the game will be the main platform for an accompanying line of action figures and vehicles from longtime "Star Wars" partner Hasbro Inc. to be released next year. A print and television advertising campaign will precede the game launch, piggybacking on the 30th anniversary of the franchise.
It's the kind of push usually reserved for a new "Star Wars" film. Mr. Lucas, of course, has said he won't make any more of those. He does, however, plan to keep the movie's merchandising empire rolling -- a strategy that is dependent on generating new stories and fresh approaches to the iconic characters and their world.
So the new videogame is set in the period between "Star Wars: Episode III -- Revenge of the Sith" and "Star Wars: Episode IV -- A New Hope," during the rise of the rebellion against Darth Vader and the Empire. Jim Ward, president of LucasArts, the videogame unit of Lucasfilm, says players will discover new pieces of the "Star Wars" story that help fill in the blanks.
Of course, the "Star Wars" universe has long been peppered with comics, novels and other ancillary products that riffed off Mr. Lucas's films. The stable of nonmovie storylines became so big that it spawned its own moniker: "expanded Star Wars universe," encompassing everything not directly mentioned in the movies. Lucasfilm says sales of "Star Wars" merchandise topped $12 billion since its inception in 1977, about three times the world-wide box office for all six movies combined.
Lucasfilm's blueprint for successfully managing an aging movie franchise is desirable for other studios to copy, but the strategy is difficult to replicate, says Charles Riotto, president of the International Licensing Industry Merchandisers' Association. "There aren't that many properties out there that have that kind of longevity" and necessary fan base, he says.
Experts say "Star Wars" goods have shown surprising strength this year despite the absence of a new movie -- even beating merchandise from summer flicks such as "Cars," "Superman Returns," and "Pirates of the Caribbean: Dead Man's Chest." "Star Wars" is the top seller so far this year of action figures and the biggest merchandiser for boys' toys, according to market-research firm NPD Group of Port Washington, N.Y. Lucasfilm's head of licensing, Howard Roffman, says it is selling more than double its nearest movie-merchandise competitor this summer, "Cars."
Nonetheless, the sales engine is starting to slow. Last month, Hasbro said sales of "Star Wars" merchandise dropped $84.8 million in its second quarter from the year-earlier period, when the last installment of the "Star Wars" franchise opened in theaters. Lucasfilm says it licenses 10,000 products but is trimming back the assortment in categories like apparel, backpacks and bed linens.
Toy retailers like Toys "R" Us continue to push the brand, timing marketing efforts around big videogame or DVD releases. The front of the Toys "R" Us store in Manhattan's Times Square features a large presentation of new "Star Wars" toys timed to the September release of new DVDs of the original trilogy and a new videogame called Lego Star Wars II, where players can customize characters using Lego-style pieces. Toys "R" Us is rolling out a similar display in its other 600 locations across the U.S.
Still, it is clear that Lucasfilm faces challenges without a future new film driving fan interest. Industry observers say that fan interest waned during the nearly 20-year period between the first and second trilogies, something that Lucasfilm and its partners hope to avoid this time around.
To keep interest going, the company is creating a children's television animated series set during the heyday of the Jedi world, between "Star Wars: Episode II -- Attack of the Clones" and "Star Wars: Episode III -- Revenge of the Sith." In 2008, the company will also launch an accompanying toy line linked to the new characters of the series.
Then there's a nine-novel series that follows Luke Skywalker, Princess Leia and other main characters 25 years after "Star Wars: Episode VI -- Return of the Jedi." The first book, "Star Wars: Legacy of the Force: Betrayal," was released in May and spent about a month on the New York Times best-seller list.
Hasbro and other licensees like Master Replicas Inc. have expanded their line of collector merchandise, which Lucasfilm says appeals to a broader range of fans -- from children watching the series for the first time to adults who have been "Star Wars" junkies for decades. "During the original trilogy, it was strictly a kids' property in terms of who was buying merchandise," says Mr. Roffman, adding "there were no things like high-end collectibles."
Philip Wise, Webmaster of "Star Wars" fan sites theforce.net and rebelscum.com, says high-end products like $579 replicas of Boba Fett's blaster, $99 minibusts of well-loved characters and even $2,799 replicas of the Millennium Falcon that Mr. Wise recently ordered are helping maintain fan interest. Mr. Wise says he is "shocked" at the number of consumers who continue to buy "Star Wars" products in the absence of a new film.
The future success of Lucasfilm's strategy will depend on hooking young fans like Layton Malmstrom. The eight-year-old became obsessed with "Star Wars" after watching "Star Wars: Episode IV -- A New Hope" a few years ago. His recent birthday party in Phoenix featured a "Star Wars" theme and his presents ranged from toys like the new Star Wars Transformers to the latest Millennium Falcon vehicle set.
"I just decided to find out what "Star Wars" was like," Layton says. "I just loved it so much and then I got every single episode." He's since added videogames to his menagerie of more than 100 different "Star Wars" toys. He's a fan club member and an avid reader of "Star Wars" fan magazines. "I wanted to go to the next step," he says.