Indiana Jones and the Kingdom of the Crystal Skull principals George Lucas, Steven Spielberg and Harrison Ford shined their upfront fees and won’t see any Indy money until the film grosses $400 million worldwide, according to a 4.21 column by L.A. Times business reporter Claudia Eller.
“If that seems like a no-brainer, consider the norm in Hollywood, where top-tier filmmakers and stars traditionally earn huge upfront fees and get a big cut of ticket sales before a studio recoups its investment,” Eller writes.
“The atypical arrangement between the studio and the triumvirate illustrates the new economic realities of the movie business. As production and marketing costs continue to escalate amid flat theater attendance and declining DVD sales, studios are increasingly looking for ways to protect themselves from colossal losses on a single picture.”