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Disney ratchets up royalty rate on Star Wars products

Nov. 25, 2015 8:48 AM ETThe Walt Disney Company (DIS) StockDIS, EA, SIG, JAKK, HAS, COTYBy: Clark Schultz, SA News Editor28 Comments
  • Sales of Star Wars consumer products could reach $5B over the first year after the December release date of Star Wars: The Force Awakens, according to some high-flying projections.
  • The mark would smash the previous movie product sales record of $2.8B set by Cars 2.
  • Disney (NYSE:DIS) turned the screws on licensing partners by working a deal for a ~20% royalty which is about double the normal rate. Hasbro (NASDAQ:HAS) is the major licensee for Star Wars toys, while a host of other companies have bits and pieces - including Jakks Pacific (NASDAQ:JAKK), Lego, Kay Jewelers (NYSE:SIG), Topps, Electronic Arts (NASDAQ:EA), Rubie's Costume Company, and even CoverGirl (NYSE:COTY).

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