Before American Graffiti became one of the most profitable films in Universal Pictures' history, the studio had remarkably little faith in it. George Lucas had already been rejected by major companies including Metro-Goldwyn-Mayer, Paramount, 20th Century Fox, and Columbia, while United Artists rejected the project partly because the proposed soundtrack required licensing approximately seventy-five popular songs. Universal agreed to make the picture only under severe financial restrictions: Lucas received artistic control and final-cut privilege, but he had to complete the film on a strict low budget.
Universal's expectations were so low that the studio initially planned to handle the film as a television release rather than a major theatrical attraction. The situation changed when Francis Ford Coppola, newly celebrated for The Godfather, signed on as producer and allowed Universal to promote the picture as coming from “the man who gave you The Godfather.” His involvement brought an additional $175,000 to the production and helped secure a theatrical release. The studio also obtained first-look arrangements connected to Lucas's next proposed projects, Star Wars and Radioland Murders. American Graffiti ultimately earned more than $200 million in box-office and home-video revenue, surpassed Airport as Universal's highest-grossing film, and exposed the extraordinary misjudgment behind its initial television-movie treatment.
