10. A Runaway Success

A number of studios passed on Star Wars, before 20th Century Fox finally agreed to make the film. The studio’s execs were still a bit unsure about the movie’s prospects, however. So when Lucas offered to give up $500,000 of his director’s fee in exchange for complete ownership of merchandise and licensing fees, the studio agreed. It was a costly face palm mistake that 20th Century Fox came to greatly regret. Upon its release in 1977, Star Wars: A New Hope became a runaway box office success. It also generated massive demand for toys and merchandise based on characters and vehicles. George Lucas had contracted with toymaker Kenner. Like 20th Century Fox, however, Kenner had not expected the movie to become so popular, or the resultant demand for tie-in merchandise to be so huge. Soon, demand for toys and merchandise outran supplies.



