A quarter-century ago in a marketplace far, far away, a cosmic force called Star Wars opened in theaters as a movie and went forth as a franchise. A dozen years later, another high-flying franchise was born in Batman.

Today, in the glare of a new century, franchises are all the rage in Hollywood, and so are superheroes, animation, and flights of fantasy.

Through the long-term licensing of apparel, publishing, games, toys, and even race cars-and the runaway success of DVD-sprawling conglomerates and smaller studios are more eager than ever to fashion enduring franchises because retailers are less eager than ever to stock merchandise based on movies that are gone with the wind.

Meanwhile, as the big get bigger, they are learning to work in closer harmony with internal partners to achieve maximum exposure and sales. Boutique studios pride themselves on moving more nimbly and bringing licensees and partners closer to the production process.

Welcome to Licensing Hollywood 2002 with this glimpse of strategies from Disney Consumer Products, DreamWorks, Fox Licensing & Merchandising, Lucas Licensing, MGM Consumer Products, Miramax, New Line Cinema, Sony Pictures Consumer Products, Universal Studios Consumer Products Group, Viacom Consumer Products, and Warner Bros. Consumer Products.

Disney Consumer Products Disney Consumer Products operates as virtually a stand-alone unit within Walt Disney Co. "I don't really consider this the licensing arm of the studio," says Consumer Products President Andrew Mooney. "The programs we put together with retailers and licensees to promote the movie slate are important strategically, but are not really the primary focus of our business anymore."

"Films are one-off events," notes the Scotsman. He adds that his group focuses on partnerships with the company's television, publishing, and interactive units to "build sustainable properties, such as Princess, Winnie the Pooh, Toy Story, or Power Rangers."

Mooney says most studios' traditional approach to movie merchandise is "passive licensing, and I think it is a dying profession." He contrasts it with Disney's evolving style of "active licensing." That, explains Mooney, is where "we can add value to licensees where we design products alongside them, and stay engaged in the manufacturing and merchandising process. Historically, packaged goods companies have tapped into Disney equity to drive their brands."

In addition to Kellogg's cereal and Minute Maid juice products, says Mooney, Disney has taken an "active role in designing toys with Mattel and Hasbro, as well as stationery and soft goods lines."

Reporting to Mooney are hardlines, toys, apparel, publishing, interactive, and the Disney Stores.

There currently are nearly 447 Disney outlets in North America, with another 178 internationally. Headed by Peter Whitford, who ran Structure stores for The Limited, the Disney chain has been "right-sized," says Mooney, with store count stabilized.

When the stores were launched 13 years ago, Mooney observes, "they had multiple raisons d'etre, to let the community touch Disney at a local level and as a broad showcase for a range of products. We increasingly use them now as a laboratory to test ideas first, and if they succeed, we leverage and evangelize with other retailers."

One of those ideas, observes Mooney, is Disney Home, which he calls an "organizing device." At Kmart, for example, there's a kids' apparel collection that mothers can mix and match with or without Disney characters. There's also bedding and other home furnishings from Burlington and Westpoint Stevens.

There's a "retail need and desire to move into the non-character space," says Mooney. He points out that in softlines at retail, non-character space in apparel is seven times that of character space, and in Europe, non-character space is 20 times greater. In addition, Disney has announced direct-to-retail deals with 13 accounts worldwide "to create promotional and business activities that go across the entire span of Disney."

Princess is "a very explosive property for us right now," says Mooney of the multiple character collection aimed at girls 4- to 10-years-old. Also on tap at Licensing Show are Power Rangers, Disney Baby, Winnie the Pooh, and TV properties Kim Possible and Lizzie McGuire.

Due in theaters June 21 is Lilo and Stitch, with a program, says Mooney, "as strong as one can expect given the overall climate for theatrical licensing. There are so many competing demands for consumer attention, if you can retain a window four to six weeks beyond theatrical, you're doing remarkably well."

DreamWorks Consumer Products DreamWorks SKG was touted as Hollywood's first new film studio in nearly 60 years when it was founded in 1995 by Steven Spielberg, Jeffrey Katzenberg, and David Geffen.

That status has presented opportunities and challenges in consumer products that are outside the norm for Hollywood.

Brad Globe, head of consumer products, says the small slate helps keep the operation nimble: "There's no bureaucracy (and no formal executive titles), and we can make deals quickly. If we come up with a new idea, we just get Jeff [Katzenberg] to sign off on it, and we're off and running."

Promotions report to Globe, and it is headed by Anne Globe (Brad and Anne are Mr. and Mrs.). His staff coordinates with Terry Press and DreamWorks' theatrical marketing group to keep them aware of advertising and marketing plans for consumer product campaigns.

Brad Globe has been working with Steven Spielberg since 1983 at Amblin Entertainment. He was recruited to join DreamWorks at its birth to build its consumer products business. "The thing about Steven, Jeffrey, David is their passion for the product that comes through in movies such as American Beauty, Saving Private Ryan, and Gladiator," he says. "We're not a public company beholden to stockholders."

DreamWorks' average box office is "double the industry standard," reports Globe.

"A startup in any business is a challenge," he observes. "We don't have classics or a lot of TV. We're driven by the animated movie side of the business."