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Disney: Star Wars Nostalgia Of Generations

Summary

Star Wars has been in the lives of more than 3 generations.

The film can earn unexpected box office numbers due to the nostalgia effect.

This could present an upside of a minimum 3.69% to the Disney stock.

The Star Wars franchise is probably the most well-known movie franchise in the world. It lacks the Academy Awards the Lord of the Rings franchise has earned or the box offices that Harry Potter raked in, but it is still the most iconic one, which inspired countless generations. One of the reasons for it being so well known around the world is that the first film came out in 1977 (Episode IV: A New Hope) and it had 5 more movies with 4-5 year intervals. So how will the new chapter in the saga perform and what can it do for Disney's (NYSE:DIS) stock, which has been struggling these past months due to the falling ESPN subscription numbers.

Generational effect on the Box Office

The first Star Wars trilogy began in 1977 and ended in 1983 with Episode VI: Return of the Jedi. If we assume that Star Wars has an average viewer age group of 10-35 years old, the first trilogy's viewers are between ages 42-65 now, that is roughly two generations. The second trilogy ran between 1999 and 2005 which corresponds to a viewer age of 20-51 in 2015. This assumption leaves us with the conclusion that the first two trilogy's viewers are between ages of 20-65 right now. That is almost 3-4 generations. Considering the addictive culture of Star Wars and the huge marketing campaign surrounding the new movie that is coming out, we can safely assume most of these viewers will go back...


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