Peter Jackson is being called a lot of names - the man who shot JRR, the world's favourite director, the 20th most powerful person in Hollywood in Premiere magazine's new list, and the film-maker whose last two movies generated $1bn at the global box-office.

He doesn't look like the man who changed the face of movies. As cast members of The Lord Of The Rings trilogy have pointed out, he looks like a Hobbit not a Hollywood player. Short, rotund and bearded, he favours shorts and no shoes, even in the poshest hotels when promoting his films.

The film-maker is an obvious winner as the three-Ring circus rolls out across the world this week, with the release of the final part of his epic screen adaptation of JRR Tolkien's trilogy.

He's achieved what many thought impossible when he set out, seven years ago, on his journey to film the novels. The results have pleased cinemagoers and Tolkien fans alike, as well as backers New Line, the US film company that gambled $270m on the project.

Not only did they hand over the money to a director whose record of splatter and arthouse movies hardly hinted he could pull off a big commercial success, but to one who insisted that the entire film, including the extensive special effects work, should be made in his native New Zealand, a country many executives had probably never heard of, let alone visited.

Even if he managed to complete the trilogy on time and budget, there was no guarantee audiences would go to see it in sufficient numbers of justify the budget. Time has shown otherwise, with the final part opening to record advance ticket sales, demonstrating the story really has become hobbit-forming.

How unlike The Matrix trilogy which suffered from the law of diminishing returns, with the third part met by critical and public indifference last month. It'll still make a lot of money but the audience isn't leaving with the same sense of satisfaction as they do making for the exit after Jackson's work.

The last two parts of The Matrix were made back-to-back in Australia. Jackson went further by making the Tolkien trilogy in one 18-month marathon shoot, then recalling the cast for additional filming between the release of the first and second parts.

Hollywood usually follows a big success by copying it over and over again, but don't expect a rash of big budget fantasy epics. The Lord Of The Rings is a one-off (or should that be three-off?), a big event movie that the studios can't afford to do too often. It won't prompt a conveyor belt of lookalikes in the way Star Wars prompted a space movie boom and the likes of Ben-Hur prompted endless cast-of-thousands epics in the 1960s.

Significantly, it wasn't one of the major studios that backed The Lord Of The Rings. New Line, more noted for low budget independent movies, took the risk and even suggested Jackson made three films, rather than the two he was pitching.

So far a best director or best picture Oscar has eluded him. That may well be put right at next year's Academy Awards ceremony in February. Meanwhile, he's being rewarded with a $20m pay cheque - the highest in cinema history - to remake King Kong, a project he was attempting to set up before he embarked on the Tolkien trilogy.

Again, the film will be made on his terms - in New Zealand at his production facility and using his Weta effects company. His homeland's economy rather than the US movie-making capital will benefit as he attempts to entice other film-makers to work in his country now he's put it on the map. The spectacular scenery featured in the film has provided massive exposure for the tourist industry, with a Minister for Lord Of The Rings appointed to ensure every opportunity is taken.

While Jackson has been elevated to the level of US directors Steven Spielberg and George Lucas, his actors will face more of a struggle to gain recognition. Orlando Bloom, alias blond archer Legolas, has done better than most. His co-starring role in the summer's biggest hit The Pirates Of The Caribbean and heartthrob looks have made him "hot property".

Viggo Mortensen, who plays Aragorn, could finally find himself a star rather than a supporting play. The screen Frodo, Elijah Wood, has already filmed Eternal Sunshine Of The Spotless Mind with Jim Carrey and is lined up to play a football yob in the film Hooligan.

A loser is Christopher Lee, whose evil Saruman introduced him to a new generation of filmgoers and helped live down memories of him as Dracula in the Hammer horror movies. Unfortunately, scenes he filmed for the last part have been omitted from the final cut.

Still, he can be certain those scenes will appear on the DVD. The release of the first two episodes have helped DVD overtake video sales. They've also allowed distributors two bites of the cherry, by following the release of the cinema version with a second DVD version boasting extra features.

Online retail company Amazon attributed increased profits to a surge in DVD sales, driven by record pre-orders for The Two Towers. Web sites have been another winner. The new edition of The Rough Guide To The Lord Of The Rings reports that a search using the title results in 2.59 million entries. Make that 4.5 million as of yesterday, offering everything from secret diaries of the main characters to an essential guide to speaking Elvish.

Merchandising based on the film hasn't been confined to action figures of the characters. Even Barbie has got in on the act, dressing up as elven princess Arwen and accompanied by an Aragon doll. Tolkien may well be spinning in his grave.

Jackson's next task is bringing a giant ape to life, although a return to Tolkien isn't ruled out, if a film of The Hobbit works out. He hasn't been approached yet, adding: "But I would certainly do it. It would be weird if anyone else did it."

* The Lord Of The Rings: The Return Of The King (12A) opens in cinemas on Wednesday.