Please ensure Javascript is enabled for purposes of website accessibility

Foxy Marketing: "Star Wars" Meets "The O.C."

By Steven Mallas – Updated Nov 16, 2016 at 2:26PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fox doesn't make a lot of money off "Star Wars" -- but the relationship does benefit shareholders in other ways.

The media is abuzz with a major event that is set to occur this evening. It doesn't involve state affairs, foreign affairs, or even extramarital affairs at Boeing. Instead, it involves something much more important -- Star Wars.

Just kidding, of course. There are certainly more important things happening around the world. Nevertheless, don't discount the fervor of all the fans waiting to see the new trailer for the third episode in the new Star Wars trilogy, Revenge of the Sith.

Maybe you think this film is going to be the best thing ever to hit theaters. On the other hand, you may still be trying to figure out why George Lucas cursed cinematic history with a goofy Gungan christened with the inherently redundant moniker Jar Jar. But one thing's for certain: This could be the last Star Wars adventure we'll ever see on the big screen (remember, I italicized the word could -- don't hold me to anything!).

That has the fan base seething with intellectual and emotional conflict; on the one hand, many have felt burned by what they see as two films (Episodes I and II of the new trilogy) that fell far below expectations. (I suppose we must all keep in mind that it was impossible to top the original Star Wars trilogy.) On the other hand, this looks like it, the last chance. It's what Obi-Wan Kenobi was to the holographic Princess Leia in the first film (and by first film, I mean Episode IV) -- our only hope. There is therefore an intrinsically palpable gravity (at least as grave as anticipation for a movie can be) attached to the trailer that will debut tonight during Fox's (NYSE:FOX) popular program, The O.C.

It's a well-known fact by now that Fox -- which is set to be totally absorbed by News Corp. (NYSE:NWS) at some point -- has a highly asymmetric agreement with George Lucas vis-à-vis the new generation of Skywalker episodes. Although no one can say what the exact terms are, it's been widely reported that Lucas parts with a small percentage of profits, which go into Fox's coffers as a fee for distribution, and keeps the rest -- something on the order of (possibly) 90% -- for his Lucasfilm entity.

Fox obviously nets some nice cash off this, but it isn't exactly the best deal. In fact, there has been speculation that this is what Michael Eisner wanted to avoid by refusing to be flexible with Steve Jobs and Pixar (NASDAQ:PIXR). Jobs apparently wanted Disney (NYSE:DIS) to treat him like George Lucas and take a nominal distribution fee as compensation for maintaining a relationship with the Toy Story outfit. Eisner apparently didn't want to create another Lucas, so he saw fit to just make another Woody film on his own.

There is still value to the Star Wars association, and tonight's trailer placement proves it. The assumption is that a lot of people who otherwise might not tune into The O.C. will sample the program just to catch a glimpse of the final take on the far-far-away universe.

Let me use myself as an example. I knew nothing about The O.C. -- nothing. I had heard about it, but, quite frankly, I thought it was on another network. Then, just last night, I read about the trailer promotion while surfing around starwars.com. I became intrigued, and read a little more about the marketing endeavor. I learned a salient point: It seems there's a character on the show named Seth, who is sort of like a Kevin Smith type, a kid who is into comic books and genre films and -- not surprisingly -- Star Wars. I kid you not. Now, I'm looking forward to seeing the both the Star Wars trailer andThe O.C.

The synergy worked. Fox now has the opportunity to hook me (and you) into the show -- all because of Lucas's intellectual property, a film for which Lucas gets most of the profits. It's not a bad deal if Fox can convert a lot of these new eyeballs to loyal viewers of The O.C., considering that the TV network is an important component to News Corp's earnings.

So to all those who will join me tonight in eager scrutiny of the new trailer, I say, "May the Force be with you!" The nerd-o-meter started clicking more loudly just then, didn't it? Oh, well.

I'll leave you with one last bit of synergy -- the trailer will also be part of the Robots experience this weekend in theaters (yep, it's a Fox project). Sensible integration; you just can't beat it.

Check out these related articles:

Fool contributor Steven Mallas owns shares of Disney. He's hoping that George Lucas will now buckle down and really get going on a new Indiana Jones movie.

None

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$99.50 (-2.60%) $-2.66
Twenty-First Century Fox, Inc. Stock Quote
Twenty-First Century Fox, Inc.
FOX

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.