The short answer is – yes, the Tolkien family has earned an enormous fortune from the success of movies and shows adapted from J.R.R. Tolkien‘s immensely popular fantasy works. But let‘s take an in-depth look at the history and finances behind it.
Tolkien Sells Rights in 1969 for Tax Reasons
In 1969, J.R.R. Tolkien sold the rights for The Hobbit and The Lord of the Rings books to United Artists for just £100,000 (worth $1.5 million today adjusted for inflation). This was partly a decision made to pay inheritance taxes after Tolkien‘s death in 1973.
At the time, no one could have predicted how profitable those rights would become over the next few decades!
Rights Acquired by Saul Zaentz Company in 1976
In 1976, independent producer Saul Zaentz and his company acquired the rights from United Artists for an undisclosed amount. Zaentz is known for producing acclaimed films like One Flew Over the Cuckoo‘s Nest and Amadeus.
This catalog of intellectual property rights included theatrical, merchandising, and other commercial rights to Tolkien‘s works. It laid the foundation for the Tolkien estate‘s future earnings.
Total Earnings of Tolkien Estate Now Exceed $500 Million
Thanks to the wildly successful films, games, merchandising, and more based on Tolkien‘s creations, the J.R.R. Tolkien estate is now estimated to be worth $500 million or more. This massive fortune stems primarily from:
- Ongoing royalties from global book sales of Tolkien‘s novels which remain perennially popular. The Lord of the Rings books alone have sold over 150 million copies worldwide.
- Royalties and rights payments from the Peter Jackson helmed film trilogies of The Lord of the Rings and The Hobbit which grossed nearly $6 billion at the box office.
- Lucrative rights deals with Warner Bros, Amazon, video game developers, merchandisers, and more to adapt Tolkien‘s works.
According to HarperCollins, the Tolkien estate earns around £50 million per year ($63 million) just from book sales and licenses.
Royalties from Peter Jackson‘s Film Trilogies
Based on information revealed in past legal disputes, the Tolkien estate is entitled to 7.5% of the gross receipts from films based on Tolkien‘s works once they exceed 2.6 times their production budgets.
Under this agreement, the Tolkien estate likely earned over $75 million from Peter Jackson‘s Lord of the Rings trilogy which grossed nearly $3 billion worldwide and over $15 million from The Hobbit trilogy which grossed over $2.9 billion.
Amazon Pays $250 Million for Rights
In 2017, Amazon won the rights to produce the new The Lord of the Rings: The Rings of Power series for a massive $250 million upfront fee. This deal directly with the Tolkien estate was for television rights exceeding 8 episodes, allowing them to develop the 50 hour, 5 season show.
With each season costing over $100 million in production budgets, Amazon has committed over $1 billion to the franchise so far. The Tolkien estate also likely negotiated an ongoing royalty percentage from the show‘s revenues.
Who Currently Owns the Rights to Tolkien‘s Works?
The rights ownership to adapt Tolkien‘s different properties is complex and divided between multiple parties:
- The Saul Zaentz Company still owns the core theatrical and commercial rights previously granted by Tolkien. They license these rights through their division Middle-earth Enterprises.
- The Tolkien Estate retains the rights to adaptations over 8 episodes, video games, stage shows, merchandising, theme parks, and more.
- Warner Bros owns the rights to Peter Jackson‘s The Lord of the Rings and The Hobbit film trilogies through their New Line Cinema division.
So Amazon negotiated directly with the Tolkien estate, while Warner Bros and the Tolkien estate jointly approved the Rings of Power series.
The Silmarillion – Will It Ever Be Adapted?
Unlike The Lord of the Rings which found enormous big screen success, the rights situation for Tolkien‘s earlier work The Silmarillion is quite different.
Published posthumously by Tolkien‘s son Christopher, the rights to The Silmarillion remain completely owned by the Tolkien estate. Christopher famously disliked the idea of adapting it.
Due to this, the chances of an authorized adaptation of The Silmarillion remain slim to none. The Tolkien estate has shown no signs of selling those rights, though rumors of a deal between Christopher Tolkien and Peter Jackson persist.
For now, The Silmarillion remains protected from adaptation into a mega budget fantasy series or films. This effective veto power demonstrates the estate’s protectiveness regarding Tolkien‘s works.
Mixed Opinions Amongst Tolkien‘s Heirs
J.R.R. Tolkien himself sold the rights during his lifetime, but his descendants have had polarizing opinions on the later adaptations:
- Tolkien‘s son Christopher Tolkien disliked changes to the books but appreciated the films‘ success in interviews. He once called the gap between books and films "devastating"
- Tolkien‘s grandson Michael was more positive, praising how the films increased readership of his grandfather‘s novels.
- Another grandson Simon Tolkien believed his grandfather would not have enjoyed the films based on his purist preferences.
- Great grandson Royd Tolkien was enthusiastic about the films and saw them as a way to bring new generations of younger fans.
So while some family members expressed criticism, others saw the value in adapting Tolkien‘s works to engage wider audiences.
A Careful Balancing Act – Protecting Tolkien‘s Legacy
The Tolkien estate has a careful balancing act – tolerating some changes for new adaptations while protecting the legacy and integrity of J.R.R. Tolkien‘s vision.
They notoriously insist on approving scripts, productions, narratives, and merchandising involving Tolkien‘s works. But they worked closely with Amazon on Rings of Power to ensure it aligned with Tolkien‘s themes while expanding on them for today‘s viewers.
The estate’s cooperation was key to bringing the Second Age to life, while respecting the spirit of Middle-earth. Their active involvement aims to uphold the quality and essence of what makes Tolkien‘s fictional world so special.
The Influence Continues Thanks to Careful Custodianship
Almost 50 years since his death, J.R.R. Tolkien‘s influence remain stronger than ever. His novels continue selling phenomenally despite their age. And new generations of fans are emerging thanks to authorized adaptations in film, television and gaming.
The Tolkien estate‘s careful custodianship of his works along with their selective approval of new high-quality productions have ensured his timeless stories will be enjoyed for decades more.
With Amazon‘s Rings of Power off to a strong start, rumors of a Jackson Silmarillion project, and more games likely on the horizon – the future looks bright for maintaining the legacy of Middle-earth.
