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Indynomics

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Remember last month when we took a moment to consider the potential back-end windfalls for Steven Spielberg, George Lucas and Harrison Ford should Indiana Jones 4 turn when Indiana Jones 4 turns a profit? "Crystal Skull will have to generate around $400 million for Paramount for the studio to make its money back and earn its distribution fee," Claudia Eller wrote in the LA Times. "Only at that point will Lucas, Spielberg, Ford and smaller profit participants, including screenwriter David Koepp, begin collecting their portion. Paramount will take 12.5 cents from every dollar thereafter, while Lucas and company will earn 87.5 cents." With the worldwide total pushing $332 million in five days, the film could drop 75% percent globally this weekend and still be pouring money on the principals by Sunday night. A more likely 50% drop would still split $86 million among them — with another solid month of box office ahead. Elsewhere in percentages: The likelihood of Indiana Jones 5 climbed to 100% while we wrote this.

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indynomics

Lucas And Spielberg Given Hefty Chunk Of Indy's Possibly Saggy Back-End

Hard as it is to believe, after what seems like 19 endless years of false-starts and "Slowly Veering Lincoln Continental of Doom" jokes, we are less than one month away from seeing the fourth chapter of the Indiana Jones saga. The adventuresome archaeologist enters a far different Hollywood from the days when he first planted sunbeam-focusing scepters in secret map rooms, however; studio sash-tightening has required its makers to defer their fees in exchange for that venerable Hollywood trade-off, a piece (and in this case, a gigantic piece) of the back-end. The LAT breaks down Crystal Skull's financial model:

Paramount spent about $185 million to make the movie and will pay at least $150 million to market it worldwide. The studio will earn a distribution fee of 12.5% of the revenue it receives from the film's release in all media, including theaters, DVD and television.
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10:40 AM on Mon Apr 21 2008
By Seth
1,751 views, 4 comments

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