Good Bad Billionaire: George Lucas and Peter Jackson – Film Stories

Podcast: Good Bad Billionaire (BBC World Service)
Hosts: Simon Jack & Zing Tsjeng
Episode Date: September 8, 2025

Overview of Episode Theme

In this double feature, Simon Jack and Zing Tsjeng revisit two iconic episodes from past years, chronicling how film directors George Lucas and Peter Jackson built not just cinematic universes, but personal fortunes amounting to billions. With characteristic wit and critical analysis, Simon and Zing explore how these visionary creators leveraged creativity, risk-taking, technology, and business acumen to enter the billionaire’s club. The hosts also scrutinize the interplay of art, commerce, and culture in their legacies.

The episode flows through the life and business moves of Lucas (Star Wars, Indiana Jones) and Jackson (Lord of the Rings, Weta Digital), detailing the inventive deals, creative risks, and industry upheavals behind their fortunes.

George Lucas: From Modesto to the Star Wars Empire

Segment starts: [02:33]

Early Life & Influences

Background: Raised in Modesto, California, Lucas was a creative child, obsessed with science fiction, comic books, and Flash Gordon ([03:10]).
Inciting incident: Nearly died in a car crash in high school, giving up racing dreams for filmmaking ([04:44]).

“He wanted to be a racing car driver…but his kind of boy racer dreams are kind of dashed…he gets hit by a truck and very nearly dies.” — Zing ([04:53])

Film School Hustle and First Stumbles

USC & Student Films: Created “Electronic Labyrinth: THX 1138 4EB”, a dystopian short leading to connections with Francis Ford Coppola ([05:20], [07:00]).
Lesson in Business: Early commercial failure with the full-length THX 1138, Lucas and Coppola learn resilience ([07:52]).
Critical moment: Lucas lives off his wife’s salary after setbacks, showing early persistence ([08:24]).

First Big Hit: American Graffiti

Turning point: $10,000 from United Artists leads to the making of “American Graffiti” ([09:07]).
Smart deals: Lucas sets up Lucasfilm Ltd. and takes a massive 40% profit share instead of a big upfront salary—a move highly unusual for the era ([10:30], [11:24]).

“He’s taken less money up front, but is confident in what he’s doing, and he’ll make more money later on if and when it proves to be a success, which it did.” — Simon ([10:30])
Payoff: The film costs ~$1 million and makes $55 million; Lucas becomes a millionaire at 28 ([12:17], [12:40]).

Creation of Star Wars – A New Franchise Model

Origins: Inspired heavily by childhood loves, especially Flash Gordon ([13:33]).
Vision: Studios are skeptical of Lucas’s “space opera”; he persists, taking a lower director’s fee for sequel and merchandising rights ([14:27]).
Legendary deal: 40% profit share and sequel rights, considered one of the best deals in Hollywood ([14:47]).

“Some people have talked about that as maybe the best deal in Hollywood history.” — Simon ([14:47])
Production: Lucas self-funds, founds Industrial Light & Magic, and invents DIY special effects—including the iconic opening crawl ([17:36]).

The Star Wars Explosion – Billionaire Blueprint

Box office: The original film grosses $307 million on an $11 million budget ([19:01]).
Merchandising: Licensing is only a 5% cut for Lucas, but still earns $20 million by 1979 ([21:11]).
Lifestyle: Buys Skywalker Ranch, but maintains his “jeans and check shirt” persona ([21:32]).
Sequel Independence: Uses profits to self-fund and thus own nearly 80% of “The Empire Strikes Back” ([22:55]).

“That basically puts him in the kind of independent filmmaker category…” — Simon ([23:06])
Critical divorce: Divorce reveals personal wealth at ~$100 million, but cash flow issues arise from a few flops ([24:31]).
Intersections: Sells Pixar to Steve Jobs for $5 million, keeping Lucas afloat ([25:28]).

Ultimate Hollywood Tycoon Moves

Transmedia leverage: $2 billion global tie-in with PepsiCo for Star Wars re-releases and prequels ([26:34]).
Billionaire status: Forbes estimates Lucas at $1.7 billion after the Pepsi deal ([28:01]).
Creative exit: After negative reception to the prequels, Lucas leaves the director’s chair and ultimately sells Lucasfilm to Disney, creating a “cultural behemoth that goes on forever” ([30:13]).

“He’s created this cultural behemoth where you just have to be involved and have an opinion, even if it’s good, even if it’s bad.” — Zing ([29:48])

Peter Jackson: Building a Billion-Dollar Middle Earth

Segment starts: [30:55]

Humble Beginnings in New Zealand

Roots: Grew up in a small village, obsessed with special effects and King Kong ([34:41], [35:09]).
DIY filmmaker: As a teen, earns money from Super 8 films, innovating with homemade gear ([36:03]).

Early Films – Gory Success

Cult classics: “Bad Taste” (aliens, ultra-gore) shot over four years, gets government funding, makes a profit via international sales ([39:09]).
Dynamic duo: Meets partner Fran Walsh—longtime collaborator, now wife ([40:07]).

The Leap: Heavenly Creatures and Tech Savvy

Critical pivot: “Heavenly Creatures” earns Oscar nominations, but fateful impact comes from Jurassic Park’s CGI revolution ([41:07]).
Business move: Jackson creates Weta Digital, investing in digital effects to future-proof filmmaking ([41:48]).
Hollywood arrival: “The Frighteners” brings in more tech investments and profit via Weta Digital’s share of the budget, not just film sales ([43:42], [44:13]).

Building "Wellywood" and the LOTR Gamble

Studio system: Expands Weta, attracting outside productions with high-quality, low-cost effects ([45:36]).
Lord of the Rings quest: After failed King Kong reboot, pivots to Tolkien, struggles through rights battles, and secures New Line as backer ([47:25], [51:19]).
Negotiating power: Wins three full films with New Line, $10 million fee per film, and 10% of profits ([53:05]).

The Lord of the Rings: Mega Franchise Payoff

High risk: Complex, multinational financing and epic shoot—435 days ([53:53], [55:27]).
Economic windfall for NZ: Tax breaks, government support, and creation of “Wellywood” ([56:14], [56:28]).
Cultural sensation: Trilogy grosses $3 billion, wins 17 Oscars; Jackson earns $200 million by 2005 ([57:23], [59:06], [60:15]).
Profit controversy: Studio accounting leads Jackson to sue New Line for $100 million in unpaid profits ([61:45]).

Tech, VFX, and the Unity Deal – Billionaire Ascension

Weta’s rise: Weta Digital becomes Hollywood’s go-to VFX studio (Avatar, X-Men), working on over 150 films with 7,000 staff by 2023 ([65:30], [67:01]).
The billion-dollar leap: In 2021, Jackson sells Weta Digital's technology division to Unity Software for $1.6 billion; Jackson personally receives $975 million ($600m cash, $375m shares). With earnings already in the hundreds of millions, Forbes certifies him as a billionaire ([67:11]).

“So that is how Peter Jackson became a billionaire.” — Zing ([68:15])

Jackson's Legacy

Industry leader: Reinvests in New Zealand’s film industry; avoids Hollywood flash in favor of building local infrastructure ([62:20], [62:49]).
Ongoing impact: From Oscar-winning epics to critical documentaries (“They Shall Not Grow Old”, “Get Back”), Jackson’s output continues to shape film and visual effects ([64:46], [65:00]).
Billionaire the Kiwi way: Shuns flashy lifestyle in favor of creative autonomy and national legacy.

Notable Quotes & Memorable Moments

On Business Risks:

“Learning to fail is kind of an important thing about becoming a billionaire. You’ve got to have the balls, I suppose…” — Simon ([07:52])
On Visionary Deals:

“I think that’s a real billionaire trait… He’s taking risks rather than doing things the right way that Hollywood says it should be done.” — Zing ([10:19])
On Cultural Impact:

“When you think about it, he’s created this cultural behemoth where you just have to be involved and have an opinion…” — Zing ([29:48])
On Homegrown Innovation:

“He brought the entire film industry to where he was rather than the other way around.” — Simon on Jackson ([35:09])
On NZ’s Film Industry:

“Jackson was quite chilled out about it. He said, ‘I’d rather have the money parked in a facility that a lot of people can use than have it sit in the bank…’” — Zing ([62:49])

Episode Timeline & Timestamps

| Segment | Subject / Memorable Moment | Timestamp | |------------------------------|----------------------------------------------------------|----------------| | George Lucas: Early Life | Flash Gordon, Car Crash, USC, Coppola | [02:46]-[07:00]| | American Graffiti | Lucasfilm, profit share deals | [09:07]-[12:44]| | Star Wars Breakthrough | Franchise creation, legendary profits | [13:21]-[14:47]| | Merchandising & Sequels | Kenner deal, Skywalker Ranch, self-funding | [21:02]-[23:06]| | Lucasfilm Rollercoaster | Divorce, Pixar sale, cash flow crisis | [24:31]-[25:34]| | PepsiCo & Billionaire Status | $2B deal, critical success, stepping away | [26:34]-[30:13]| | Peter Jackson: Origins | Childhood, early horror comedies | [34:41]-[40:07]| | Heavenly Creatures, Weta | Digital revolution, Oscar nods | [41:07]-[43:29]| | Lord of the Rings Buildup | New Line deal, production risk, marketing | [47:25]-[57:44]| | Massive Franchise Payoff | Trilogies, income, critical/cultural impact | [59:06]-[60:15]| | Tech Deal Makes Billionaire | Weta Digital sold to Unity, Forbes valuation | [67:11]-[68:15]|

Tone & Style

Simon and Zing are conversational, candid, and pepper their deep dives with humor, pop culture nods, and occasional detours into their personal filmic loyalties. Their analysis balances admiration for artistic and entrepreneurial genius with skepticism about Hollywood accounting and the billionaire mythos.

Summary

This twin-profile episode masterfully traces how two creative outsiders—Lucas, the “idiosyncratic” Star Wars auteur, and Jackson, the “Hobbit-like” New Zealander—broke Hollywood’s rules. They leveraged artistic vision, technical innovation, and business shrewdness to amass fortunes and change the course of global cinema. The hosts dissect the traits and tactics that define the “Good Bad Billionaire,” inviting listeners to decide which side of the ledger Lucas and Jackson fall on.

For more stories of maverick billionaires from film, tech, and beyond, subscribe to Good Bad Billionaire!

Good Bad Billionaire: George Lucas and Peter Jackson – Film Stories

Podcast: Good Bad Billionaire (BBC World Service)
Hosts: Simon Jack & Zing Tsjeng
Episode Date: September 8, 2025

Overview of Episode Theme

George Lucas: From Modesto to the Star Wars Empire

Segment starts: [02:33]

Early Life & Influences

Background: Raised in Modesto, California, Lucas was a creative child, obsessed with science fiction, comic books, and Flash Gordon ([03:10]).
Inciting incident: Nearly died in a car crash in high school, giving up racing dreams for filmmaking ([04:44]).

“He wanted to be a racing car driver…but his kind of boy racer dreams are kind of dashed…he gets hit by a truck and very nearly dies.” — Zing ([04:53])

Film School Hustle and First Stumbles

USC & Student Films: Created “Electronic Labyrinth: THX 1138 4EB”, a dystopian short leading to connections with Francis Ford Coppola ([05:20], [07:00]).
Lesson in Business: Early commercial failure with the full-length THX 1138, Lucas and Coppola learn resilience ([07:52]).
Critical moment: Lucas lives off his wife’s salary after setbacks, showing early persistence ([08:24]).

First Big Hit: American Graffiti

Turning point: $10,000 from United Artists leads to the making of “American Graffiti” ([09:07]).
Smart deals: Lucas sets up Lucasfilm Ltd. and takes a massive 40% profit share instead of a big upfront salary—a move highly unusual for the era ([10:30], [11:24]).

“He’s taken less money up front, but is confident in what he’s doing, and he’ll make more money later on if and when it proves to be a success, which it did.” — Simon ([10:30])
Payoff: The film costs ~$1 million and makes $55 million; Lucas becomes a millionaire at 28 ([12:17], [12:40]).

Creation of Star Wars – A New Franchise Model

Origins: Inspired heavily by childhood loves, especially Flash Gordon ([13:33]).
Vision: Studios are skeptical of Lucas’s “space opera”; he persists, taking a lower director’s fee for sequel and merchandising rights ([14:27]).
Legendary deal: 40% profit share and sequel rights, considered one of the best deals in Hollywood ([14:47]).

“Some people have talked about that as maybe the best deal in Hollywood history.” — Simon ([14:47])
Production: Lucas self-funds, founds Industrial Light & Magic, and invents DIY special effects—including the iconic opening crawl ([17:36]).

The Star Wars Explosion – Billionaire Blueprint

Box office: The original film grosses $307 million on an $11 million budget ([19:01]).
Merchandising: Licensing is only a 5% cut for Lucas, but still earns $20 million by 1979 ([21:11]).
Lifestyle: Buys Skywalker Ranch, but maintains his “jeans and check shirt” persona ([21:32]).
Sequel Independence: Uses profits to self-fund and thus own nearly 80% of “The Empire Strikes Back” ([22:55]).

“That basically puts him in the kind of independent filmmaker category…” — Simon ([23:06])
Critical divorce: Divorce reveals personal wealth at ~$100 million, but cash flow issues arise from a few flops ([24:31]).
Intersections: Sells Pixar to Steve Jobs for $5 million, keeping Lucas afloat ([25:28]).

Ultimate Hollywood Tycoon Moves

Transmedia leverage: $2 billion global tie-in with PepsiCo for Star Wars re-releases and prequels ([26:34]).
Billionaire status: Forbes estimates Lucas at $1.7 billion after the Pepsi deal ([28:01]).
Creative exit: After negative reception to the prequels, Lucas leaves the director’s chair and ultimately sells Lucasfilm to Disney, creating a “cultural behemoth that goes on forever” ([30:13]).

“He’s created this cultural behemoth where you just have to be involved and have an opinion, even if it’s good, even if it’s bad.” — Zing ([29:48])

Peter Jackson: Building a Billion-Dollar Middle Earth

Segment starts: [30:55]

Humble Beginnings in New Zealand

Roots: Grew up in a small village, obsessed with special effects and King Kong ([34:41], [35:09]).
DIY filmmaker: As a teen, earns money from Super 8 films, innovating with homemade gear ([36:03]).

Early Films – Gory Success

Cult classics: “Bad Taste” (aliens, ultra-gore) shot over four years, gets government funding, makes a profit via international sales ([39:09]).
Dynamic duo: Meets partner Fran Walsh—longtime collaborator, now wife ([40:07]).

The Leap: Heavenly Creatures and Tech Savvy

Critical pivot: “Heavenly Creatures” earns Oscar nominations, but fateful impact comes from Jurassic Park’s CGI revolution ([41:07]).
Business move: Jackson creates Weta Digital, investing in digital effects to future-proof filmmaking ([41:48]).
Hollywood arrival: “The Frighteners” brings in more tech investments and profit via Weta Digital’s share of the budget, not just film sales ([43:42], [44:13]).

Building "Wellywood" and the LOTR Gamble

Studio system: Expands Weta, attracting outside productions with high-quality, low-cost effects ([45:36]).
Lord of the Rings quest: After failed King Kong reboot, pivots to Tolkien, struggles through rights battles, and secures New Line as backer ([47:25], [51:19]).
Negotiating power: Wins three full films with New Line, $10 million fee per film, and 10% of profits ([53:05]).

The Lord of the Rings: Mega Franchise Payoff

High risk: Complex, multinational financing and epic shoot—435 days ([53:53], [55:27]).
Economic windfall for NZ: Tax breaks, government support, and creation of “Wellywood” ([56:14], [56:28]).
Cultural sensation: Trilogy grosses $3 billion, wins 17 Oscars; Jackson earns $200 million by 2005 ([57:23], [59:06], [60:15]).
Profit controversy: Studio accounting leads Jackson to sue New Line for $100 million in unpaid profits ([61:45]).

Tech, VFX, and the Unity Deal – Billionaire Ascension

Weta’s rise: Weta Digital becomes Hollywood’s go-to VFX studio (Avatar, X-Men), working on over 150 films with 7,000 staff by 2023 ([65:30], [67:01]).
The billion-dollar leap: In 2021, Jackson sells Weta Digital's technology division to Unity Software for $1.6 billion; Jackson personally receives $975 million ($600m cash, $375m shares). With earnings already in the hundreds of millions, Forbes certifies him as a billionaire ([67:11]).

“So that is how Peter Jackson became a billionaire.” — Zing ([68:15])

Jackson's Legacy

Industry leader: Reinvests in New Zealand’s film industry; avoids Hollywood flash in favor of building local infrastructure ([62:20], [62:49]).
Ongoing impact: From Oscar-winning epics to critical documentaries (“They Shall Not Grow Old”, “Get Back”), Jackson’s output continues to shape film and visual effects ([64:46], [65:00]).
Billionaire the Kiwi way: Shuns flashy lifestyle in favor of creative autonomy and national legacy.

Notable Quotes & Memorable Moments

On Business Risks:

“Learning to fail is kind of an important thing about becoming a billionaire. You’ve got to have the balls, I suppose…” — Simon ([07:52])
On Visionary Deals:

“I think that’s a real billionaire trait… He’s taking risks rather than doing things the right way that Hollywood says it should be done.” — Zing ([10:19])
On Cultural Impact:

“When you think about it, he’s created this cultural behemoth where you just have to be involved and have an opinion…” — Zing ([29:48])
On Homegrown Innovation:

“He brought the entire film industry to where he was rather than the other way around.” — Simon on Jackson ([35:09])
On NZ’s Film Industry:

“Jackson was quite chilled out about it. He said, ‘I’d rather have the money parked in a facility that a lot of people can use than have it sit in the bank…’” — Zing ([62:49])

Episode Timeline & Timestamps

Tone & Style

Summary

For more stories of maverick billionaires from film, tech, and beyond, subscribe to Good Bad Billionaire!

George Lucas and Peter Jackson: Film stories

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Summary

Good Bad Billionaire: George Lucas and Peter Jackson – Film Stories

Overview of Episode Theme

George Lucas: From Modesto to the Star Wars Empire

Early Life & Influences

Film School Hustle and First Stumbles

First Big Hit: American Graffiti

Creation of Star Wars – A New Franchise Model

The Star Wars Explosion – Billionaire Blueprint

Ultimate Hollywood Tycoon Moves

Peter Jackson: Building a Billion-Dollar Middle Earth

Humble Beginnings in New Zealand

Early Films – Gory Success

The Leap: Heavenly Creatures and Tech Savvy

Building "Wellywood" and the LOTR Gamble

The Lord of the Rings: Mega Franchise Payoff

Tech, VFX, and the Unity Deal – Billionaire Ascension

Jackson's Legacy

Notable Quotes & Memorable Moments

Episode Timeline & Timestamps

Tone & Style

Summary

Summary

Good Bad Billionaire: George Lucas and Peter Jackson – Film Stories

Overview of Episode Theme

George Lucas: From Modesto to the Star Wars Empire

Early Life & Influences

Film School Hustle and First Stumbles

First Big Hit: American Graffiti

Creation of Star Wars – A New Franchise Model

The Star Wars Explosion – Billionaire Blueprint

Ultimate Hollywood Tycoon Moves

Peter Jackson: Building a Billion-Dollar Middle Earth

Humble Beginnings in New Zealand

Early Films – Gory Success

The Leap: Heavenly Creatures and Tech Savvy

Building "Wellywood" and the LOTR Gamble

The Lord of the Rings: Mega Franchise Payoff

Tech, VFX, and the Unity Deal – Billionaire Ascension

Jackson's Legacy

Notable Quotes & Memorable Moments

Episode Timeline & Timestamps

Tone & Style

Summary