of Star Wars
A Citadel Conversation
of Star Wars
"What do the markets have to do with my world?” We get this question a lot when touring campuses, and our answer, in a word, is “everything.” Our view is not just that markets touch every part of life, but that every part of life can be a way to find opportunities in markets. In this special edition of “Citadel Conversations,” we lift the veil on how members of our Global Equities team solve investment puzzles, even those that hail from a long time ago, in a galaxy far, far away….
international Box office Revenues Double in 10 Years While Domestic Box office Stagnates
Unsurprisingly, this year's video game analysis showed strong purchase intent for Star Wars: Battlefront. But if you dig deeper you discover interesting trends about how and where consumers plan to make their purchases. And that impacts gross margins.
Attack of the Clones: How Movie Studios use and Reuse intellectual Property
The Droids You’re Looking For: Toys, Games and Merchandizing
The forthcoming Star Wars Trilogy will be released every other year. From a toy manufacturer's perspective, this could eliminate some of the boom/bust of a traditional release. We expect to see a lift in the current year, and then within six months to a year, we expect additional demand as we see hype build for the next movie.
As we talked about earlier, Star Wars has a very rich canon, thousands of years of content, lots of characters and stories and worlds, all of which can be added to the games as digital downloads or extra content that consumers can get for free or purchase. This expands the monetization life and builds a pipeline of new releases for years to come. It also keeps consumers engaged which lowers customer acquisition cost.
“it’s a Trap!”: Movie Hits and Misses
Financing and the international Markets
Other studios want to defray some risk, so they have added slate financing. They will find a partner with capital, but who doesn't necessarily participate in the creative process, to invest in a slate of films. Here’s a great example: Lionsgate has a slate financing deal with Hunan TV in China. However, Lionsgate isn't putting their Hunger Games franchise, Divergent franchise, or Twilight franchise into that slate because they know that those are somewhat guaranteed hits. Warner Brothers, similarly, hasn’t included Harry Potter in their deals.
Age of Extinction nailed authenticity. They didn't just add a scene in China or a mention of China — they cast a major Chinese actress, Li Bingbing. They found four Chinese citizens to be in the film through a reality competition. They filmed in Hong Kong and Shanghai.
A New Hope: What’s Next For the Movie industry?
Interested in joining the Citadel team? Click here to learn more.