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July 05, 2008
Indiana Jones & The Temple Of Cash
To answer ye olde question, what will Lucas/Spielberg/Ford make on Indiana Jones & The Kingdom of the Crystal Skull?
The Paramount deal was 87.5% to Lucas/Spielberg/Ford after a set breakeven point. LAT put that number at $400 million, which has to be low, unless you assume that Par gets a cut on DVD and other ancillaries as well, which I will do for the moment.
The film is $317 million over $400 million at this point. So… buying into the reporting, Lucas/Spielberg/Ford has scored just over $153 million on the movie so far. (87.5% of the 55% rental on gross ticket sales dollars) If the math is correct (and Paramount has refused to discuss it), Paramount has gotten back about $260 million so far ($220 million in 55% rentals on a $400 million gross and $60m on 12.5% on the 55% of the remaining $317m), leaving the studio about $75 million in the hole (roughly $185 on production and $150m on marketing), which they clearly expect to make up in DVD and other ancillaries. For the studio to break even on that – based on the deal reported by Claudia Eller), they would have to generate at least $1 billion more in the other revenue streams (unlikely), netting $75 million from their 12.5% of gross net. If they do, Lucas/Spielberg/Ford make another $525 million.
And now that I have done the math… I can’t believe that Brad Grey did a deal this horrible.
Really.
Could they have done a deal where the studio will lose money on a $750 million worldwide hit?
Seems impossible.
My better guess – guess! - is that as on theatrical, there is a post-theatrical number that the movie has to hit before the Lucas/Spielberg/Ford participation kicks in. Sensibly, based on the reported deal and how tight it is for Paramount, that number has to be about $125 million, returning about 60% to the studio, or $75 million.
Figuring a very strong Home Entertainment interest and solid TV sales (included in packages with the first 3 films), figure a $550 million net ancillary market is realistic. Take the $125 million off the top and the shared revenues are $425 million, after Par actually does break even. That means a $53 million total profit for Paramount… and another $370 million for Lucas/Spielberg/Ford, for a total take of around $525 million… with no cash outlay or risk.
Not a bad year’s work.
Posted by dpoland at July 5, 2008 08:12 PM
Comments
From every dingy basement on every dingy street
every dragging handclap over every dragging beat
That's just the beat of time-the beat that must go on
If you’ve been trying for years we already heard your song
Death or glory becomes just another story
Death or glory just another story
Posted by: mutinyco ![[TypeKey Profile Page]](http://www.mcnblogs.com/thehotblog/nav-commenters.gif)
at July 5, 2008 08:57 PM
Koka kola advertising and cocaine
Strolling down the Broadway in the rain
Neon light sign says it
I read it in the paper; they're crazy!
Posted by: Wrecktum at July 5, 2008 11:12 PM
He's so super whack
We cannot believe he's not on crack.
He does things that make no sense.
We are surprised he can pay the rent.
He's a fool.
He's a fool.
Everybody knows he's a fool.
He's a fool.
He's a fool.
If it were not for decent sized lips. We are convinced that he would always drool.
He's a fool.
He's a fool.
To some people in south American he's a TOOL!
Wherever he goes.
Wherever he shows.
Everybody knows he's a fool.
He's a fool.
HE'S A FOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOLLLLL!!!
Posted by: IOIOIOI at July 6, 2008 12:04 AM
this might take the heavyweight title for 'weirdest...thread...ever'
Posted by: leahnz at July 6, 2008 03:37 AM
Are these curious word-collections meant to accompany some kind of melodious tune? I find it all quite illogical.
Posted by: jeffmcm at July 6, 2008 04:42 AM
jeff - mutinyco and Wrecktum quoted songs by The Clash. No idea what IO's song is - though I'm sure we're the only losers on the net who don't recognize it, and it's probably been the number one download for months on the site where all the cool kids go. :)
Posted by: yancyskancy at July 6, 2008 09:52 AM
Jeff: I would be shocked if you had a melodic note in your head. Seriously though, it's a nice song and dance number. Who doesn't love a good song and dance number?
Posted by: IOIOIOI at July 6, 2008 04:59 PM
Indiana Jones has been ruling the Supermarket isles for weeks now, thanks in large part to the Dr Pepper Snapple Group inc. & Kellogs. Now The Dark Knight is hitting the shelves, thanks in part to General Mills (which also had a Speed Racer deal) Betty Crocker, Bisquick, Old El Paso, Hershey's, and Yoplait.
And... I see no Wall-E at all. Kung-Fu Panda is surprisingly sparse.
Posted by: Tofu at July 6, 2008 06:36 PM
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