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George Lucas's 'Avatar' envy?
Why is the legendary "Star Wars" director producing a CGI "musical" about...fairies? Here are the top three theories
 

"Star Wars" director George Lucas is stepping outside of his galactic action-adventure comfort zone to produce his first musical — a CGI animated production that somehow features fairies. The top-secret project is being directed by Kevin Munroe (2007's "Teenage Mutant Ninja Turtles)" and written by "Elf" scribe David Berenbaum. What's behind this sprightly move? Three theories:

Lucas clearly wants a piece of the "Avatar" action: "Lucas has been very vocal about his admiration (jealousy?) of 'Avatar's groundbreaking achievements," says Mike Scalise at Moviefone, so this CGI musical could well be his "not-so-subtle attempt to keep up with the Camerons." (Coincidentally or not, "Avatar" is besting "Star Wars" in the all-time box-office race.) On the plus side: A non-"Star Wars"–related project might free Lucas to reclaim his visionary creativity. "But we have to ask: a fairy musical? Really?"
"George Lucas to produce a CGI musical? About fairies?"

"Avatar"-envy theories are strained — this is legitimate Lucas material: The idea certainly sounds odd, says Christopher Campbell at MTV Movies. But remember, Lucas is grounded in both delicate, mystical creatures and musicals— he wrote and directed the fairy-heavy "Willow," and served as Francis Ford Coppola's administrative assistant on the 1968 musical "Finian's Rainbow." Besides, if you're scrutinizing movie trends, fairies are actually more popular in Hollywood now than CGI flicks.
"George Lucas producing CG-animated musical about fairies"

Yes, Lucas is obsessed with "Avatar," but in more predictable ways: We know that Lucas has "Avatar" envy, says Kristen Callihan in Paste Magazine, because he told us so. In fact, seeing "Avatar" so inspired Lucas that he's allegedly reviewing "his own cinematic masterpieces — meaning that a 3D 'Star Wars' may be coming to a not-so-far-away galaxy soon."
"George Lucas is ready to get his 'Avatar' on"

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