Lucasfilm Ltd.

views updated May 11 2018

Lucasfilm Ltd.

P.O. Box 2009
San Rafael, California 94912-2009
U.S.A.
Telephone: (415) 662-1800
Fax: (415) 662-2437
Web site: http://www.lucasfilm.com

Private Company
Incorporated: 1911
Employees: 2,000 (est.)
Sales: $1,500 million (2001 est.)
NAIC: 512110 Motion Picture and Video Production; 512120 Motion Picture and Video Distribution; 512190 Postproduction Services and Other Motion Picture and Video Industries

The 16th largest motion picture producer in the United States, ranked by revenues, Lucasfilm Ltd. is an independent film and television production and distribution company developed by George Lucas, creator of the popular and profitable Star Wars and Indiana Jones film series. By 1995, Lucasfilm consisted of three entities: Lucasfilm Ltd., Lucas Digital Ltd., and LucasArts Entertainment Co. Lucasfilm Ltd. created Lucas’s motion picture and television productions and administered the THX theater and the home theater licensing and certification procedures. Lucas Digital Ltd. oversaw operations of Industrial Light & Magic (ILM), the world’s foremost visual effects production facility, and Skywalker Sound, one of the world’s premier sound engineering facilities. Finally, Lucas-Arts Entertainment Company produced multimedia and interactive computer entertainment and educational computer software, while also overseeing the licensing responsibilities for Lucasfilm stories and characters.

1970s: George Lucas Breaks into the Movie Business

Company founder George Lucas was born in 1945 in Modesto, California, and was educated at the University of Southern California’s (USC) film school. Having won a scholarship to observe Francis Ford Coppola direct the film Finian ‘s Rainbow, Lucas would later recall in a New York Times interview, “Francis forced me to become a writer and to think about things other than abstract and documentary films.” In 1971, Lucas wrote and directed his first feature film, THX 1138, the story of a future world in which people live in underground cities run by computers. Inspired by a short film he wrote while a student at USC, THX 1138 was produced by Francis Ford Coppola’s American Zoetrope studios. The following year, Lucas created his own film company, Lucasfilm Ltd., with offices in Hollywood, across the street from Universal Studios.

In 1973, Lucas experienced his first commercial success with the film American Graffiti, a humorous look at one evening in the lives of some recent high-school graduates in the early 1960s, which Lucas co-wrote and directed. In addition to receiving a Golden Globe award and awards from the New York Film Critics and the National Society of Film Critics, American Graffiti received five Academy Award nominations. Moreover, Lucas became known as one of the most popular directors in Hollywood, and his company began to expand. During this time, for example, Lucas founded Sprocket Systems, which later became Skywalker Sound, a full-service audio post-production facility. He also created Industrial Light & Magic (ILM) to develop the use of computer graphics in film, focusing particularly on the striking visual effects that would be used in the upcoming film Star Wars.

Late 1970s to Early 1980s: Star Wars Is Born

Lucas wrote and directed the first Star Wars film in 1977. Made by Lucas and Lucasfilm for Twentieth Century Fox, the film reportedly incurred production costs of around $6.5 million. A fantasy/science fiction (sci-fi) tale featuring a young hero, a princess, a pilot, a villain, and a host of robots and creatures, Star Wars became a number one box-office attraction as well as an important part of U.S. culture and film history. The film’s characters also became the basis for a very profitable line of children’s toy figures and other merchandise. In fact, profits from Star Wars allowed Lucas to fully finance subsequent films in the series and to retain a higher portion of the profits. Over the next six years, Lucas wrote and executive produced the Star Wars sequels The Empire Strikes Back (1980) and The Return of the Jedi (1983). Through 1995, all three films would maintain positions among the top 15 box-office attractions of all time and would continue to generate record toy sales.

Mid-1980s: The Empire Expands

In the early 1980s, a wholly owned subsidiary, LucasArts Entertainment Company, was added to Lucasfilm’s holdings, providing, according to company literature, “an interactive element in George Lucas’s vision of a state-of-the-art, multi-faceted entertainment company.” LucasArts developed, in part, under the leadership of R. Douglas Norby, who joined Lucasfilm in 1985 after serving as chief financial officer at Syntex Corporation. As president and chief executive officer of LucasArts until 1992, Norby helped the subsidiary become a leading developer of entertaining and interactive multimedia computer software for schools, homes, and arcades. Such products combined Lucas’ storytelling and character development strengths with the newest, most advanced technologies available. Early game efforts included: “Maniac Mansion,” “Battlehawks 1942,” “Their Finest Hour: The Battle of Britain,” “Secret Weapons of the Luftwaffe,” “Loom,” and “The Secret of Monkey Island.” The company also produced software products based on the Star Wars and the Indiana Jones series. “X-Wing” would become the best selling CD-ROM entertainment title of 1993, and in 1994 “Rebel Assault” became one of the best selling CD-ROM software of all time. Educational products, developed by the LucasArts Learning sub-unit, included “GTV: American History from a Geographic Perspective,” an interactive video disc and computer learning effort involving both the National Geographic Society and the California State Department of Education. Another program, “Life Story,” was developed in partnership with Apple Multimedia Lab and the Smithsonian Institution.

LucasArts was also charged with overseeing the licensing and design of toys and other products based on Lucasfilm ideas and characters. Comic books and novels extending the Star Wars and Indiana Jones universes were successful ventures for LucasArts. In 1991 The New York Times indicated that LucasArts licensed Star Wars toys had grossed over $2.6 billion dollars around the world.

George Lucas Breaks from Tradition

As Lucasfilm continued to profit, George Lucas gradually began to separate himself from traditional Hollywood. In 1981, he relinquished membership in the Academy of Motion Picture Arts and Sciences, the Writers Guild, and the Directors Guild and began moving his offices to Skywalker Ranch, a 3,000-acre secluded production facility located in San Rafael, 25 miles from San Francisco. Named for the Star Wars character Luke Skywalker, the ranch became the business and production hub of the Lucas financial empire. Discussing his intentions for the new ranch complex in an interview for the New York Times, Lucas said, “As opposed to Hollywood, where the film makers support the corporate entity, Lucasfilm will support the overhead of the ranch. We’ll make money out of the money by buying real estate, cable, satellite, solar energy—without buying anything we’re ashamed of, like pesticides—and then the corporation will give us the money to make films.”

Despite their detachment from Hollywood, Lucas and Lucasfilm continued to create widely successful films, producing a popular series of Indiana Jones movies, which were directed by Lucas’s friend and colleague Steven Spielberg. The three movies, Raiders of the Lost Ark (1981), Indiana Jones and the Temple of Doom (1984), and Indiana Jones and the Last Crusade (1989), featured the adventures of Indiana Jones, an heroic archaeologist whose work brings him into contact with villains, dangerous situations, and romance. All three films achieved wide financial success.

Not all Lucasfilm productions achieved commercial success. Such motion pictures as More American Graffiti (1979), Howard the Duck (1986), Labyrinth (1986), and Radioland Murders (1994) met with disappointing ticket sales and critical reviews. Nevertheless, George Lucas remained a leader in his field; in 1992, he received the Academy of Motion Picture Arts and Sciences’ prestigious Irving G. Thalberg award for pioneering work in film technology. Moreover, any losses the company incurred by its few commercial disappointments were offset by Lucasfilm’s involvement in all aspects of movie production; ILM in particular began to thrive and gradually became the company’s most profitable division.

Key Dates:

1971:: Lucasfilm Ltd. Incorporates; George Lucas writes and directs his first feature film, THX 1138
1973:: George Lucas experiences commercial success with the film American Graffiti
1975:: Industrial Light & Magic is established to produce visual effects for the upcoming Star Wars film
1977:: Star Wars is released and received six Academy Awards
1980:: The Empire Strikes Back is released
1981:: Raiders of the Lost Ark is released
1983:: Return of the Jedi is released. The Computer Division reorganizes to form Pixar and Games
1984:: Indiana Jones and the Temple of Doom is released
1986:: Lucasfilm sells Pixar to Steven Jobs
1989:: LucasArts Entertainment Company is established, which includes the Games Division
1995:: The Library of Congress honors American Graffiti by naming it to the National Film Registry
1997:: Star Wars Special Edition premiers nationwide
1999:: Star Wars Episode One: The Phantom Menace is released. Trustees of the Presidio National Park in San Francisco select Lucasfilm as preferred developer of 23 acres for its proposed Letterman Digital Arts Center, pending an environmental review
2002:: Star Wars Episode Two: Attack of the Clones is released.

Described by Lucasfilm as “the largest and most advanced digital effects system in the entertainment industry,” ILM not only mastered the traditional arts of blue screen photography, matte painting, and model construction, but also pioneered the development of motion control cameras, optical compositing, and other advances in special effects technology. Its use of computer graphics and digital imaging in feature films also involved developing such breakthrough techniques as “morphing,” which allowed the seamless transformation of one object into another. ILM’s film credits in the 1980s and 1990s included most of the Star Trek movies, ET: The Extraterrestrial (1982), Cocoon (1985), Back to the Future (1985), Who Framed Roger Rabbit? (1988), Ghost (1990), Terminator 2: Judgment Day (1991), Jurassic Park (1993), Schindler’s List (1993), Forrest Gump (1994), and many others. In fact, by the end of 1994, ILM had handled special effects for over 100 feature films, several of which won Academy Awards for best visual effects and technical achievement.

ILM also began working with Walt Disney Productions in 1985, developing over the years such theme park attractions as Captain EO (1986) for Disneyland, Star Tours simulator ride for Disneyland, Body Wars (1989) for Disneyworld’s EPCOT Center, and Space Race (1991) a simulator ride for Showscan.

Skywalker Sound was also thriving during this time, with sound post-production studios in Santa Monica, West Los Angeles, and at the Skywalker Ranch complex. At these facilities—which comprised sound and foley stages, mixing and editing studios, and screening rooms, all renowned for their technical sophistication and versatility—the sound was recorded for such popular films as Jurassic Park, Mrs. Doubtfire, and Quiz Show. Skywalker also undertook television commercial projects for such products as Pepsi, Listerine, the Jenny Craig diet plan, and Malaysian Air, among others.

1990s: The Empire Continues to Expand

In February 1993, Lucasfilm announced a reorganization, opting to spin off ILM and Skywalker Sound into units of a new company called Lucas Digital Ltd. Film producer Lindsley Parsons, Jr., a former manager of production at MGM/UA Entertainment, CBS Theatrical Films, and Paramount Pictures, was named president and CEO of Lucas Digital, while George Lucas served as the company’s chairperson.

Two months later, Lucas Digital’s ILM subunit teamed up with Silicon Graphics Inc., of Mountain View, California, to create The Joint Environment for Digital Imaging (the acronym JEDI referring to the heroic knights of the Star Wars trilogy). The joint effort was created to serve as a film production unit as well as a test lab for new technology in visual effects. The connection between Lucasfilm and Silicon Graphics was actually forged in the late 1980s, when Lucasfilm began using Silicon Graphics workstations to create their special effects. By working together, Lucasfilm gained greater access to Silicon Graphics’s more advanced computer workstations, while Silicon Graphics gained access to Lucasfilm’s proprietary software. The companies expected to revolutionize filmmaking through their use of computer graphics and reduce the costs of producing special effects by as much as 90 percent.

During this time, Lucasfilm also made a name for itself in the field of television production, performing its most notable work perhaps in 1993 through the television series The Young Indiana Jones Chronicles. Written and executive produced by George Lucas, the series won the Banff Award for Best Continuing Series, a Golden Globe nomination for best dramatic series, an Angel Award for Quality Programming, and ten Emmy Awards.

Another of Lucasfilm’s activities involved its THX Group, which, according to Lucasfilm literature, was “dedicated to ensuring excellence in film presentation.” The commercial portion of the certification program, developed in 1982, involved certifying the quality of the listening environment in commercial theaters. THX-certified theaters were required to meet Lucasfilm standards for such factors as speaker layout, acoustics, noise levels, and equalization of the signal. By 1995, Lucasfilm claimed over 770 certified installations in theaters and soundstages around the world.

Mid-1990s: A Pioneer in Fields of Technology and Workplace Satisfaction

The THX system also had applications in the home theater, a concept that was gaining popularity in the mid-1990s. Lucasfilm’s home THX system certified equipment to ensure that it maintained the quality of film sound as it was transferred to the home. Specifically, home THX certification and licensing program controlled parameters that affected the clarity of dialogue, “soundstaging” (localizing sounds), surround sound diffusion, frequency response, and transparency. Such licensing was available to equipment manufacturers for certification of front and center speakers, surround speakers, subwoofers, amplifiers, preamplifiers, receivers, laser disc players, front video projection screens, and cords and interconnects.

In 1994, for the fourth year in a row, Working Mother magazine named Lucasfilm, Lucas Digital, and LucasArts Entertainment among the top 100 workplaces for working mothers. The magazine praised the companies’ child-care centers, flexible working hours, and profit sharing plans, as well as their reputation for equal treatment in pay. Moreover, the companies subsidized 100 percent of health care costs for the employee and 75 percent for the family. Not surprisingly, the three companies enjoyed a low turnover rate.

In the mid-1990s, George Lucas remained very involved in the arts and education, serving as chairperson of the George Lucas Educational Foundation as well as on the board of directors of the National Geographic Society Education Foundation, the Artists Rights Foundation, The Joseph Campbell Foundation, and The Film Foundation. He was also a member of the USC School of Cinema-Television Board of Councilors. Moreover, Lucasfilm also remained poised for growth, announcing plans in 1994 to produce three more installments of the Star Wars series and one more installment of the Indiana Jones series. Plans were to film the three Star Wars films simultaneously and to released them biannually, beginning in 1998 or 1999. Steven Spielberg agreed at that time to direct the fourth Indiana Jones movie. With such projects underway, the companies that Lucas founded seemed well prepared for continued profitability.

Late 1990s: Deals, Re-releases, and Prequels

George Lucas’s announcement that he would re-release the original Star Wars series remastered and enhanced, and that he would direct three additional Star Wars films (“prequels”), that would reveal the history behind the original trilogy, sparked a host of commercial deals. Companies clamored to negotiate for a piece of the Star Wars legacy. In 1996, Lucasfilm and PepsiCo aligned forces in an approximate $2 billion global marketing deal. PepsiCo gained rights to for the launch of the enhanced movies, while Lucasfilm retained the ability to search for additional partners for the new franchise coming in 1999. Random House and Scholastic got a piece of the pie when they signed agreements with Lucasfilm to develop books based on the forthcoming prequels. The agreement allowed that Scholastic would publish three sets of Star Wars books for each new format, and a novelization of each new film. Fox also secured a deal; Fox agreed to distribute all three of the upcoming movies and received, for an undisclosed sum, the network broadcast rights to the first of the three films. Unity, a communications agency, was hired to mastermind the global marketing launch of the Episode One, in 1999. The much sought after multi-year, multi-million dollar toy rights went to Galoob and Hasbro, prompting Hasbro to purchase Galoob. Nintendo snagged another hot deal—the rights to Star Wars videogames.

The 1997 re-release of Star Wars, the first movie in the original trilogy, grossed more than $250 million domestically, a good start to the upcoming string of re-releases and prequels.

New Technologies and New Star Wars Movies

George Lucas stunned the movie industry in 1999 when he announced that Lucasfilm would bankroll the first digital projectors to be used in theaters. The projectors debut would be timed to show Phantom Menace, the title of the first of the three Star Wars prequels. The first movie in the prequel series, Star Wars Episode One: Attack of the Clones, was released on May 19, 1999.

Later in 1999, Lucasfilm was selected by the trustees of the new Presidio national park, intended to become a part of Golden Gate National Recreation Area in San Francisco, California, to develop a motion picture complex at the site.

Additional strides in technology were taken, over the years, by ILM, the largest f/x studio in the film business. The company supplied complex computer graphics for several computer graphic-rich films, including A.I. Artificial Intelligence, Pearl Harbor, The Mummy, and Harry Potter and the Chamber of Secrets.

2000s: Learning from His Mistakes

Although the release of Star Wars Episode One: The Phantom Menace, and Star Wars Episode Two: Attack of the Clones, (released in 2002) were successful, there were lessons to be learned. One of which was that although toys and games sold as forecast, apparel and some other products did not sell as anticipated. Howard Roffman, vice president of sales for Lucasfilm, told Discount Store News in August, 1999, that although apparel had never been a strong category for licensing, “Some retailers bought into it heavily, and in some channels there is too much merchandise.” After a disappointing run of apparel sales after the Episode One release, retailers have vowed to be more cautious.

Lucasfilm also learned from the release of Episode One. Just days after releasing the movie in the United States, Lucasfilm found that hawkers in many foreign countries managed to procure bootleg copies of the film to sell on the streets. In order to avoid the same problem, Lucasfilm decided to release the second movie worldwide on the same day—May 16, 2002. Additionally, in order to scoop the unauthorized Internet sites, Lucasfilm created his own “underground” Web site, complete with fake news stories and features in order to keep ahead of the game. Episode Two, released in 2002, was one of the top-grossing films of the year, and Episode Three is expected to perform at least as well. Lucasfilm is sure to have more gems up its sleeve, and is poised to continue its legacy.

Principal Subsidiaries

Lucas Digital Ltd.; LucasArts Entertainment Co.; Industrial Light & Magic (ILM); Skywalker Sound.

Principal Competitors

New Line Production Inc.; Paramount Pictures.

Lucasfilm Ltd.

views updated May 29 2018

Lucasfilm Ltd.

P. O. Box 2009
San Rafael, California 94912-2009
U.S.A.
(415) 662-1800
Fax: (415) 662-2437

Private Company
Incorporated: 1971
Employees: 750
Sales: $250 million
SICs: 7812 Motion Picture and Video Production; 7822
Motion Picture & Tape Distribution; 6794 Patent Owners
& Lessors

The 16th largest motion picture producer in the United States, ranked by revenues, Lucasfilm Ltd. is a film and television production and distribution company developed by George Lucas, creator of the popular and profitable “Star Wars” and “Indiana Jones” film trilogies. By 1995, Lucasfilm consisted of three entities, each chaired by George Lucas himself: Lucasfilm Ltd., Lucas Digital Ltd., and Lucas Arts Entertainment Co. Lucasfilm Ltd. created Lucas’s motion picture and television productions and administered the THX theater and home theater licensing and certification procedures. Lucas Digital Ltd. oversaw operations of Industrial Light and Magic (ILM)—the world’s foremost visual effects production facility—and Sky-walker Sound, one of the world’s premier sound engineering facilities. Finally, Lucas Arts Entertainment Company produced multimedia and interactive computer entertainment and educational computer software, while also overseeing the licensing responsibilities for Lucasfilm stories and characters.

Company founder George Lucas was born in 1945 in Modesto, California, and was educated at the University of Southern California’s film school. Having won a scholarship to observe Francis Ford Coppola direct the film Finían ’s Rainbow, Lucas would later recall in a New York Times interview that “Francis forced me to become a writer and to think about things other than abstract and documentary films.” In 1970, Lucas wrote and directed his first feature film, THX 1138, the story of a future world in which people live in underground cities run by computers. Inspired by a short film he wrote while a student at USC, THX 1138 was produced by Francis Ford Coppola’s American Zoetrope. The following year, Lucas created his own film company, Lucasfilm Ltd., with offices in Hollywood, across the street from Universal Studios.

In 1973, Lucas experienced his first commercial success with the film American Graffiti, a humorous look at one evening in the lives of some recent high school graduates in the early 1960s, which Lucas co-wrote and directed. In addition to receiving a Golden Globe award and awards from the New York Film Critics and the National Society of Film Critics, American Graffiti received five Academy Award nominations. Moreover, Lucas became known as one of the most popular directors in Hollywood, and his company began to expand. During this time, for example, Lucas founded Skywalker Sound, a full-service audio post production facility. He also created Industrial Light & Magic (ILM) to develop the use of computer graphics in film, focusing particularly on the striking visual effects that would be used in the upcoming film Star Wars.

Lucas wrote and directed the first Star Wars film in 1977. Made by Lucas and Lucasfilm for Twentieth Century Fox, the film reportedly incurred production costs of around $6.5 million. A fantasy/sci-fi tale featuring a young hero, a princess, a pilot, a villain, and a host of robots and creatures, Star Wars became a number one box-office attraction as well as an important part of American culture and film history. The film’s characters also became the basis for a very profitable line of children’s toy figures and other merchandise. In fact, profits from Star Wars allowed Lucas to fully finance subsequent films in the series and to retain a higher portion of the profits. Over the next six years, Lucas wrote and executive produced the Star Wars sequels The Empire Strikes Back (1980) and The Return of the Jedi (1983). Through 1995 all three films would maintain positions among the top 15 box-office attractions of all time and would continue to generate record toy sales.

In the early 1980s, a wholly owned subsidiary, LucasArts Entertainment Company, was added to Lucasfilm’s holdings, providing, according to company literature, “an interactive element in George Lucas’s vision of a state-of-the-art, multi-faceted entertainment company.” LucasArts developed, in part, under the leadership of R. Douglas Norby, who joined Lucas-film in 1985 after serving as chief financial officer at Syntex Corporation. As president and chief executive officer of Lucas-Arts until 1992, Norby helped the subsidiary become a leading developer of entertaining and interactive multimedia computer software for schools, homes, and arcades. Such products combined Lucas’ storytelling and character development strengths with the newest, most advanced technologies available. Early game efforts included Maniac Mansion, Battle hawks 1942, Their Finest Hour: The Battle of Britain, Secret Weapons of the Luftwaffe, Loom, and The Secret of Monkey Island. The company also produced software products based on the Star Wars and Indiana Jones series. X-Wing would become the best selling CD-ROM entertainment title of 1993, and in 1994 Rebel Assault became the best selling CD-ROM software of all time. Educational products, developed by the LucasArts Learning sub-unit, included GTV: American History from a Geographic Perspective, an interactive video disc and computer learning effort involving both the National Geographic Society and the California State Department of Education. Another program, Life Story, was developed in partnership with Apple Multimedia Lab and the Smithsonian Institution.

LucasArts was also charged with overseeing the licensing and design of toys and other products based on Lucasfilm ideas and characters. Comic books and novels extending the Star Wars and Indiana Jones universes were successful ventures for LucasArts. In 1991 The New York Times indicated that Lucas-Arts licensed Star Wars toys had grossed over $2.6 billion dollars around the world.

As Lucasfilm continued to profit, George Lucas gradually began to separate himself from traditional Hollywood. In 1981, he relinquished membership in the Academy of Motion Picture Arts and Sciences, the Writers Guild, and the Directors Guild and began moving his offices to Sky walker Ranch, a 3,000-acre secluded production facility located in San Rafael, 25 miles from San Francisco. Named for the Star Wars character Luke Skywalker, the ranch became the business and production hub of the Lucas financial empire. Discussing his intentions for the new ranch complex in an interview for the New York Times, Lucas said, “As opposed to Hollywood, where the film makers support the corporate entity, Lucasfilm will support the overhead of the ranch. We’ll make money out of the money by buying real estate, cable, satellite, solar energy—without buying anything we’re ashamed of, like pesticides—and then the corporation will give us the money to make films.”

Despite their detachment from Hollywood, Lucas and Lucas-film continued to create widely successful films, producing a popular series of Indiana Jones movies, which were directed by Lucas’s friend and colleague Steven Spielberg. The three movies, Raiders of the Lost Ark (1981), Indiana Jones and the Temple of Doom (1984), and Indiana Jones and the Last Crusade (1989) featured the adventures of Indiana Jones, an heroic archaeologist whose work brings him into contact with villains, dangerous situations, and romance. All three films achieved wide financial success.

Described by Lucasfilm as “the largest and most advanced digital effects system in the entertainment industry,” ILM not only mastered the traditional arts of blue screen photography, matte painting, and model construction, but also pioneered the development of motion control cameras, optical compositing, and other advances in special effects technology. Its use of computer graphics and digital imaging in feature films also involved developing such breakthrough techniques such Morf-ing, which allowed the seamless transformation of one object into another. ILM’s film credits in the 1980s and 1990s included most of the Star Trek movies, ET: The Extraterrestrial (1982), Cocoon (1985), Back to the Future (1985), Who Framed Roger Rabbit (1988), Ghost (1990), Terminator 2: Judgment Day (1991), Jurassic Park (1993), Schindler’s List (1993), Forrest Gump (1994), and many others. In fact, by the end of 1994, ILM had handled special effects for over 100 feature films, several of which won Academy Awards for best visual effects and technical achievement.

ILM also began working with Walt Disney Productions in 1985, developing over the years such theme park attractions as Captain EO (1986) for Disneyland, Star Tours simulator ride for Disneyland, Body Wars (1989) for Disney world’s EPCOT Center, and Space Race (1991) a simulator ride for Showscan.

Skywalker Sound was also thriving during this time, with sound post production studios in Santa Monica, West Los Angeles, and at the Skywalker Ranch complex. At these facilities— which comprised sound and foley stages, mixing and editing studios, and screening rooms, all renowned for their technical sophistication and versatility—the sound was recorded for such popular films as Jurassic Park, Mrs. Doubtfire, and Quiz Show. Skywalker also undertook television commercial projects for such products as Pepsi, Listerine, the Jenny Craig diet plan, and Malaysian Air, among others.

Two months later, Lucas Digital’s ILM subunit teamed up with Silicon Graphics Inc., of Mountain View, California, to create The Joint Environment for Digital Imaging (the acronym Jedi referring to the heroic knights of the Star Wars trilogy). The joint effort was created to serve as a film production unit as well as a test lab for new technology in visual effects. The connection between Lucasfilm and Silicon Graphics was actually forged in the late 1980s, when Lucasfilm began using Silicon Graphics workstations to create their special effects. By working together, Lucasfilm gained greater access to Silicon Graphics’s more advanced computer workstations, while Silicon Graphics gained access to Lucasfilm’s proprietary software. The companies expected to revolutionize filmmaking through their use of computer graphics and reduce the costs of producing special effects by as much as 90 percent.

Another of Lucasfilm’s activities involved its THX Group, which, according to Lucasfilm literature, was “dedicated to ensuring excellence in film presentation.” The commercial portion of the certification program, developed in 1982, involved certifying the quality of the listening environment in commercial theaters. THX certified theaters were required to meet Lucasfilm standards for such factors as speaker layout, acoustics, noise levels, and equalization of the signal. By 1995, Lucasfilm claimed over 770 certified installations in theaters and soundstages around the world.

The THX system also had applications in the home theater, a concept that was gaining popularity in the mid-1990s. Lucas-film’s home THX system certified equipment to ensure that it maintained the quality of film sound as it was transferred to the home. Specifically, home THX certification and licensing program controlled parameters that affected the clarity of dialogue, soundstaging (localizing sounds), surround sound diffusion, frequency response, and transparency. Such licensing was available to equipment manufacturers for certification of front and center speakers, surround speakers, subwoofers, amplifiers, preamplifiers, receivers, laser disc players, front video projection screens, and cords and interconnects.

In 1994, for the fourth year in a row, Working Mother magazine named Lucasfilm, Lucas Digital, and LucasArts Entertainment among the top one hundred workplaces for working mothers. The magazine praised the companies’ child-care centers, flexible working hours, and profit sharing plans, as well as their reputation for equal treatment in pay. Moreover, the companies subsidized 100 percent of health care costs for the employee and 75 percent for the family. Not surprisingly, the three companies enjoyed a low turnover rate.

In the mid-1990s, George Lucas remained very involved in the arts and education, serving as chairperson of the George Lucas Educational Foundation as well as on the board of directors of the National Geographic Society Education Foundation, the Artists Rights Foundation, The Joseph Campbell Foundation, and The Film Foundation. He was also a member of the USC School of Cinema-Television Board of Councilors. Moreover, Lucasfilm also remained poised for growth, announcing plans in 1994 to produce three more installments of the Star Wars series and one more installment of the Indiana Jones series. Plans were to film the three Star Wars films simultaneously and to released them biannually, beginning in 1997 or 1998. Steven Spielberg agreed at that time to direct the fourth Indiana Jones movie. With such projects underway, the companies that Lucas founded seemed well prepared for continued profitability.

Lucasfilm Ltd.

views updated Jun 08 2018

Lucasfilm Ltd.

founded: 1971

Contact Information:

headquarters: 5858 lucas valley rd.
nicasio, ca 94946 phone: (415)662-1800 fax: (415)662-2437 url: http://www.lucasfilm.com

OVERVIEW

George Lucas is the visionary behind the phenomenally successful Star Wars saga and the epic adventure Indiana Jones films. Lucas is one of the most influential filmmakers of the twentieth century, transforming the way movies are made, marketed and experienced by audiences. With five of the top 20 grossing films of all time, Lucasfilm is one of the most powerful and influential independent movie empires in all of filmdom. One of the six companies owned by filmmaker George Lucas, Lucasfilm's productions have struck Academy Awards gold 17 times.

The installment in the Star Wars saga, Star Wars: Episode I—The Phantom Menace, released in May 1999, topped the box office at $920 million, finishing number two behind Titanic.

Through Lucasfilm, created in 1971, commander Lucas handles all of the business affairs in his empire. Lucasfilm is a self-contained multimedia production enterprise that along with its subsidiaries runs completely independent of Hollywood influence.

In addition, Lucas has developed computer software for use in classrooms, and has put his name and fame behind many less successful filmmakers over the past two decades.

COMPANY FINANCES

Lucasfilm Ltd., a private company, estimated 2001 sales of $1.5 billion, including sales from international business, up 36.4 percent from the previous year. Thanks to Lucas' strong self-belief, his deal with Twentieth Century Fox to finance Star Wars made him extremely wealthy. The studio originally offered Lucas a flat fee for writing and directing the film, anticipating he would ask for a higher salary. Instead, he asked only for sequel rights and full ancillary rights, giving him a large portion of the profits from sale of toys, games, soundtrack albums, posters, costumes, and any product bearing the Star Wars name.

Profits from Star Wars memorabilia, books and comics, estimated at $2.6 billion worldwide by 1991, allowed Lucas to fully finance subsequent films and retain a higher portion of film profits. Additionally, Lucas expanded the company's reach into postproduction facilities and multimedia research. With a third Star Wars prequel slated and Spielberg's agreement to direct the fourth Indiana Jones film, Lucasfilm seems poised for continued intergalactic good fortunes.

HISTORY

Lucasfilm Ltd. is a motion picture, television and distribution company created by celebrated filmmaker George Lucas. Company founder Lucas was born in 1945 in Modesto, California and attended the University of Southern California's film school. Lucas won a scholarship to observe Francis Ford Coppola direct the film Finian's Rainbow, which had a profound effect on the young filmmaker. In 1970 Coppola produced Lucas' sophomore film effort, the futuristic THX 1138. The following year, Lucas created his own film company, Lucasfilm Ltd., in Hollywood across from Universal Studios. In 1973, Lucas got his first taste of commercial success with the movie American Graffiti, a comedic look at a night in the lives of high school graduates in the 1960s, which he co-wrote and directed. The film netted five Academy Award nods, a Golden Globe award, and awards from the New York Film Critics and National Society of Film Critics.

Lucas became well known in Hollywood and began company expansion. For example, he founded Skywalker Sound, a full service audio and post production facility. He also set up Industrial Light and Magic (ILM), now the world's foremost visual effects production facility, to develop spectacular effects for his upcoming science fiction Star Wars epics.

Lucas wrote and directed the first Star Wars movie in 1977 for Twentieth Century Fox, at a cost of $6.5 million. Star Wars became a number one box-office smash, and an important part of American culture and film history. Over the next six years, Lucas wrote and produced the Star Wars sequels The Empire Strikes Back (1980) and Return of the Jedi (1983).

As Lucasfilm continued to profit, Lucas began to distance himself from Hollywood, and moved his offices to Skywalker Ranch, a secluded 3,000-acre facility in San Rafael, California. Despite his detachment from Hollywood, Lucasfilm continued creating successful films, producing the popular Indiana Jones movies, directed by Lucas colleague Steven Spielberg. Raiders of the Lost Ark (1981), Indiana Jones and the Temple of Doom (1984), and Indiana Jones and the Last Crusade (1989) all achieved wide financial success.

FAST FACTS: About Lucasfilm Ltd.

Ownership: Lucasfilm Ltd. is a private company owned and operated by filmmaker George Lucas.

Officers: George W. Lucas, Jr., Chmn. and CEO; Gordon Radley, Pres.; Micheline Chau, CFO; Lynne Hale, Dir. of Public Relations

Employees: 2,000

Principal Subsidiary Companies: Lucasfilm is a parent/holding company established to handle the business affairs of each company in the Lucas empire. Its subsidiaries include: George Lucas Educational Foundation, Lucas Digital Ltd. LLC, Lucas Learning Ltd., Lucas THX, and LucasArts Entertainment Company LLC.

Chief Competitors: Lucasfilm is the sixteenth largest motion picture producer in the United States, ranked by revenues. Some of its chief competitors are Dream-works SKG, Universal Studios, and Walt Disney.

STRATEGY

Lucasfilm is an independent, multimedia company that seeks to develop technology and create film and television projects. Lucasfilm Ltd. oversees the business affairs of each company in the ever-expanding motion picture, television, and distribution empire. The company includes all of George Lucas' feature film and television projects as well as the business activities of the THX Group and Lucas Licensing. Lucasfilm pioneered film-oriented computerized nonlinear electronic editing for picture and sound with the creation of the EditDroid and SoundDroid, which premiered at the National Association of Broadcasters in 1984. Lucas-film recently sold the technology to AVID and has teamed up with them on the next generation of editing equipment. THX is at the forefront of quality film presentation in the exhibition and consumer electronics industry. The Professional THX Sound System is currently in more than 2,500 theaters and mixing stages worldwide.

For quality assurance, Lucasfilm initiated the Theatre Alignment Program (TAP) as a service to film-makers and movie studios. TAP's service has covered over 500 film releases, including many of the top box office films of the past decade. The THX Digital Mastering Program was first created to certify laser discs, but has gone on to include VHS and, most recently, DVD. Lucas Digital Ltd. includes the divisions of Industrial Light & Magic (ILM) and Skywalker Sound, which is committed to servicing the digital needs of the entertainment industry for visual effects and audio postproduction. ILM has created special effects for eight of the top 15 box office hits of all time, winning 14 Academy Awards for Best Visual Effects and 16 Technical Achievement Awards. ILM is at the forefront of the digital revolution, and is the world's largest digital production facility. Skywalker sound has pioneered innovative picture and sound editing technologies and has received ten Academy Awards.

CHRONOLOGY: Key Dates for Lucasfilm Ltd.

1971:: Lucasfilm Ltd. incorporates; the movie THX 1138 is released
1973:: American Graffiti is released and later receives five Academy Award nominations
1975:: Industrial Light and Magic is created to produce visual effects for Star Wars; Skywalker Sound is established to edit and mix Star Wars
1977:: Star Wars opens May 25, becomes the largest-grossing film of all time to that date, and later receives six Academy Awards for original score, film editing, sound, art and set decoration, costume design and visual effects, as well as a Special Achievement Academy Award for sound effects creations
1980:: The Empire Strikes Back opens May 21, becomes the third largest grossing film of all time, and receives an Academy Award for best sound and a Special Achievement Academy Award for visual effects
1981:: Raiders of the Lost Ark is released June 21, becomes the largest-grossing film of the year and one of the most popular movies ever made, and receives Academy Awards for art direction, sound, film editing and visual effects, as well as a Special Achievement Academy Award for sound effects editing
1983:: Return of the Jedi premieres May 25 and breaks industry records for a single day with the largest opening in history, $6.2 million
1984:: Indiana Jones and the Temple of Doom opens May 23 and receives an Academy Award for visual effects
1989:: Indiana Jones and the Last Crusade is released May 24, passes the $100 million mark in the weekend before June 13, and receives an Academy Award for sound effects editing; Industrial Light and Magic completes Body Wars, another attraction for Disney's Epcot Center; LucasArts Entertainment Company is established, including the Games Division
1992:: The first season of The Young Indiana Jones Chronicles airs on ABC; George Lucas is presented with the Irving Thalberg Award by The Academy of Motion Picture Arts and Sciences
1997:: Star Wars Special Edition premieres on January 31 to a record opening and becomes the first movie to break $400 million in domestic grosses and reclaim its title as the highest-grossing film of all time
1998:: Making the American Film Institute's list of America's 100 greatest movies are Star Wars, Raiders of the Lost Ark, and American Graffiti
1999:: Star Wars: Episode I—The Phantom Menace is released to record-breaking business across North America on May 19, shatters opening weekend box office records in 28 countries and ends the year with ticket sales of $922 million, becoming the second-highest grossing film ever released
2002:: Star Wars: Episode II—The Attack of the Clones is released

INFLUENCES

Around the year 2000, there were high hopes at Lucasfilm that up to 2,000 screens could be converted to digital projection in time for Star Wars: Episode II—Attack of the Clones. The reality is that there are only 20 digital screens nationwide and little prospect of adding more by the picture's scheduled May 16, 2002 release. In recent years, industry insiders have gone from talking about digital cinema as a possibility to something more of an inevitability. Its not a question of whether some portion of exhibitors will convert to digital, just a question of when.

The actual debut of the technology has been hampered by two main problems. First, there is still no uniform set of engineering standards for digital camera systems; and exhibitors have had other problems, such as a dozen bankruptcy filings amid industry over-expansion. Lucas had hoped that several hundred digital screens would be in place by the time Attack of the Clones premiered. The second Star Wars prequel was shot entirely on digital video. Now the feeling is perhaps several dozen theaters could convert to digital projection by the time Clones premieres, but it is doubtful that anyone will step up to provide the multi-million dollar funding necessary.

Digital productions come along rarely and usually involve computer generated-cartoons such as Dream-Works' Shrek or Disney/Pixar's Monsters, Inc.. Lucas plans a third Star Wars prequel for release in three years. Industry insiders predict Episode III could be distributed entirely in the digital format.

CURRENT TRENDS

George Lucas' long term plans to move his ILM digital f/x house and other digital operations to San Francisco's Presidio are moving ahead. Planning and design of the Letterman Digital Arts Center (LCD) has progressed to the schematic drawing stage and has been submitted to the Presidio Trust for public review. The Presidio Trust released a draft implementation plan and environmental impact statement for the 1,450-acre San Francisco park in July 2001. The draft concentrates new development in the former Army base's northeast corner, near the Palace of Fine Arts and newly restored Crissy Field. The plan limits total structural space to 5.6 million square feet.

In August 2001, the Presidio Trust and Lucasfilm inked an agreement to allow the company to develop a 23-acre office and movie production campus at the site of the abandoned Letterman Military Hospital. The 900,000 square-foot Lucasfilm campus would house about 2,500 workers, which Presidio Trust officials see as the park's financial backbone. The buildings themselves are designed to blend in with the original Spanish-style military structures, in accordance with the Presidio's design rules. The structures would be made of red brick and stucco with pitched red roofs and range from two to four stories high. Lucas' $5 million annual lease payments would assist in the park's plan to achieve economic self-sufficiency by 2013.

"Hopefully," said Lucasfilm President Gordon Radley, "together we'll build a presence so the Presidio not only signifies a geographic location, but can also signify the creative vision of all the people here who are engaged in figuring out the issues of the 21st century."

PRODUCTS

Lucas Learning is an extension of the company's successful multimedia activities. It draws on George Lucas' dedication to technological excellence with the focus on children's educational products for the home and school. LucasLearning's six titles have received worldwide acclaim.

LucasArts is a leading international developer and publisher of interactive entertainment software for computer and home video consoles. The company's games have been honored with over 150 industry awards for excellence and are among the best-selling. Fans long requested a bounty hunter game from LucasArts, and they complied with the "Father of Legendary Bounty Hunter Boba Fett Highlights Action Game" for PlayStation 2. Nintendo GameCube was planned for release in the fall of 2002. And fans will "feel the force" as the Star Wars' Jedi Starfighter for the Xbox video game system is released in May 2002 to coincide with the premiere of Star Wars: Episode II —Attack of the Clones.

Lucas Licensing represents one of the most solid core brands in the entertainment industry. It consists of licensing and merchandising activities of the Star Wars and Indiana Jones films, properties and trademarks. Like intergalactic marauders, Star Wars fans scour the globe for toys and memorabilia, from the newest action figures to vintage, classic toys. For example, while Star Wars fans awaited the latest film, the American International Toy Fair in New York City gave a glimpse of the 2002 product lines of related toys and games from Hasbro, including the release of limited edition collectible "fossil" watches to help fans know just how long it will be until Episode II comes out. And handset maker Nokia and Lucas Licensing have signed a multiple-year deal that will let Nokia distribute Star Wars-themed wireless messages, cell phone logos, and screensavers.

A TASTE OF SPACE: STAR WARS Pics in Frito-Lay's Packs.

Jedi masters Anakin Skywalker, Obi-Wan Kenobi, and Yoda were among the galaxy of stars featured in Frito-Lay's "Find the Hero Inside" campaign that kicked off in April 2002. The "3D Star Pic" plastic puzzle pieces was spotlighted as the snackmaker's tie-in with Lucas-film's Star Wars: Episode II—Attack of the Clones. The plastic collectibles were found in Chee-tos, Cracker Jack, 3Ds, Doritos, 3Ds Ruffles, and the variety pack. The puzzle pieces served as trading cards. There were nine standard pieces, with four colors apiece, and a limited edition "Clone Trooper" tenth piece. Each piece featured highlighted a holographic image of a character in the movie. When the puzzle was completed, hidden characters were revealed. Star Pics targeted 8 to 12-year-olds, and had holes so they could be clipped to backpacks and tied to shoelaces.

A four to five week TV blitz was planned to tout the Star Pics and was expected to reach 90 percent of kids. The ads portrayed an 11-year-old boy who transformed into a hero thanks to his Star Pic. The ads ran on the ABC Family Cartoon Network, Nickelodeon, and in the newspaper USA Today. Frito-Lay was hoping for a strong performance from the undisclosed multi-million dollar effort. It spent $106 million on media in 1999, the year it teamed with Star Wars: Episode I—The Phantom Menace, and $81 million on media in 2001. Supporting the ads were heroic Star Wars imagery special offers for the Frito-Lay Web site, Eploids.com. "We want to make sure we make our business goals selling more chips, but we're also excited about getting this generation reconnected to the Star Wars sagas," said Lora DeVuono, vice president of retail marketing at Frito-Lay in Plano, Texas.

CORPORATE CITIZENSHIP

When Star Wars: Episode I—The Phantom Menace was released in May 1999, it didn't have the usual celebrity premiere in Hollywood. Instead, the film opened in 11 cities as a benefit for local children's charities raising a total of $5.3 million. Then, to celebrate the holiday season, The Phantom Menace was re-released for one week beginning December 3, 1999. One hundred percent of the box office proceeds from the encore charity release were contributed to local charities selected by theater owners. This marked the first time in history that total revenues generated from the exhibition of a film in movie theaters were contributed to charitable causes. Lucasfilm, Twentieth Century Fox, and local theater owners came together in about 358 cities in the U.S. and Canada to benefit 184 different charities. George Lucas commented, "Throughout the years, Star Wars films have entertained generations of children. We are delighted that these premieres will provide an opportunity to benefit the children who need it the most."

In addition to these activities, a Star Wars charity run took place on November 22, 1999, benefiting 360 charities of all types. And in July 1999, starwars.com's official chat provider, Talk City, auctioned off exclusive Star Wars: Episode I—The Phantom Menace theatrical one-sheet posters signed by George Lucas. Those proceeds benefited the Southern California Chapter of the National Multiple Sclerosis Society.

In a repeat performance, Lucasfilm and Twentieth Century Fox announced that Star Wars: Episode II—Attack of the Clones would premiere May 12, 2002 in 11 cities in the U.S. and Canada to benefit children's charities. At each premiere, portions of theater seating will be available to disadvantaged kids.

Lucas is involved in arts and education, serving as chairperson of the George Lucas Educational Foundation as well as on the board of directors of the National Geographic Society Education Foundation, the Artist Rights Foundation, The Joseph Campbell Foundation and The Film Foundation. He is also a member of the USC School of Cinema-Television Board of Councilors.

EMPLOYMENT

Lucasfilm provides eligible employees with an extraordinary workplace as well as an excellent variety of benefits. The company offers two internship sessions annually for students in an undergraduate or graduate degree program. Lucasfilm generally offers positions related to its business affairs, not in film productions. Positions are offered in various business activities including the THX professional and consumer audio systems and the management of its corporate headquarters, Sky-walker Ranch.

SEND IN THE CLONES

Audiences can't wait for more Star Wars. So much so that director George Lucas and Twentieth Century Fox decided that Clones would attack a day earlier than scheduled. Star Wars: Episode II—Attack of the Clones premiered in North America on Thursday, May 16, 2002 in a move to jump-start the Clones' box office assault over Memorial Day weekend, considered the official kickoff of the summer blockbuster season.

When Star Wars: Episode I—The Phantom Menace opened on May 19, 1999, it scored the biggest single-day theatrical gross ever, taking in $28.5 million, and eventually earning $105.7 million in its first five days, which were before Memorial Day weekend. Over that holiday period, the film rang up another $66.9 million.

Clones "invaded" the U.S. and Canada on the same day it debuted overseas in the United Kingdom, Russia, Germany, Jordan, Hong Kong, Thailand and Hungary. Other countries, including France, Belgium, Italy, Spain, Israel, West Africa, and Bulgaria, will have to wait one day longer. The decision came from fans of the Force who complained in 1999 about The Phantom Menace opening earlier in North America than the rest of the world. Of course, some fans in Korea, India, Japan, Latin America and the Caribbean felt left in a galaxy far, far, away as Clones was not slated to open in those countries until June or July 2002 at the earliest.

In 1994, for the fourth year running, Working Mother magazine named Lucasfilm, Lucas Digital, and LucasArts Entertainment among the top one hundred workplaces for working mothers. The magazine commended the companies' child-care centers, flexible working hours, and profit sharing plans as well as equal treatment in matters of salary. Additionally, the companies subsidized 100 percent of health care costs for employees and 75 percent rates for their families. For these reasons, Lucas companies boast a low turnover rate.

SOURCES OF INFORMATION

Bibliography

diorio, carl. "digital gurus can't 'send in the clones.'" brandweek. 25 march 2002.

hein, kenneth. "frito-lay supplies pieces to the star wars puzzle."brandweek 25 march 2002.

"lucas, george walton, jr."jones telecommunications and multimedia encyclopedia, 1999. available at http://www.digitalcentury.com.

"lucasfilm ltd." hoover's online. available from http://www.hoovers.com.

lucasfilm ltd. home page, 2002. available at http://www.lucas-film.com.

"lucasfilm ltd's star wars: episode ii - attack of the clones premieres to benefit children's charities in 11 cities on may 12, 2002." canadian corporate news, 27 february 2002.

pollock, dale. skywalking: the life and films of george lucas. new york: samuel french, 1990.

"the presidio trust released a draft." california planning and development report, september 2001.

stein, todd. "will the trust be with him?" san francisco business times, 4 august 2000.

For additional industry research:

investigate companies by their standard industrial classification codes, also known as sics. lucasfilm's primary sics are:

6794 patent owners and lessors

7372 prepackaged software

7812 motion picture, video tape production

7819 services allied to motion pictures

7822 motion picture and video distribution

7829 services allied to motion picture distribution

also investigate companies by their north american industry classification system codes, also known as naics codes. lucas-film's primary naics codes are:

512110 motion picture and video production

512190 postproduction and other motion picture and videoindustries

512199 other motion picture and video industries

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