Engineering:First-dollar gross

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Short description: Filmmaking financial practice

First-dollar gross is a practice in filmmaking in which the participant receives a percentage of the gross box-office revenue, starting from a film's first day of release.[1][2] The participant begins sharing in the profits from the first ticket sale, not waiting until the film studio turns a profit.[3] It is a film finance and distribution term used primarily in the United States film industry.[4] In France , as of September 2003, one condition for filmmakers to get government support is that money must be reimbursed on the first-dollar gross basis.[5] First-dollar gross has become a rare arrangement,[6][7] and compensation has increasingly shifted away from first-dollar gross to back-end compensation.[8] Some contracts define "first dollar" as a net figure after certain expense deductions rather than a true distributor's gross.[9]

Examples

For Inception, DiCaprio chose to forgo his normal rate in favor of first-dollar gross.[10]

If a film does well, a first-dollar gross arrangement can be very lucrative for the participant.[11] Natalie Wood took 10 percent of the first-dollar gross on Bob & Carol & Ted & Alice, which according to Freddie Fields earned her more money than she did on any other movie.[12] Cameron Diaz negotiated first-dollar gross on Bad Teacher, and netted $42 million.[13] Sandra Bullock made more from her 15 percent first-dollar gross deal on Gravity than from her upfront pay of $20 million.[14] In his heyday, Arnold Schwarzenegger received 25 percent first-dollar gross.[15]

When Warner Bros. thought Inception was a risky investment, Leonardo DiCaprio agreed to cut his then-normal $20 million salary to a minimal salary with a first-dollar gross to make the film, which eventually paid him $50 million.[10] Tom Hanks and Steven Spielberg shared a 40 percent first-dollar gross on Saving Private Ryan.[16] Some other filmmakers known to have made first-dollar gross deals are Tyler Perry,[17] Eli Roth,[18] Clint Eastwood,[8] Quentin Tarantino,[19] Christopher Nolan,[20] actor Tom Cruise,[21] and film producer Jason Blum.[22] Many actors had earned $100 million later, after an initial payment.[23] For example, Tom Cruise was paid between $12–14 million for his performance in Top Gun: Maverick, which was revised to over $100 million after his share of the film's box office gross.[24]

See also

References

  1. ↑ Kelly, Kate; Marr, Merissa (13 January 2006). "Sweetheart Star Deals Go Sour". The Wall Street Journal. https://www.wsj.com/articles/SB113712043926845696. 
  2. ↑ Weinstein, Mark I. (13 August 1998). "Guide to Deal Structures". p. 4. http://marshallinside.usc.edu/mweinstein/teaching/fbe552/552secure/notes/deal%20structures.pdf. 
  3. ↑ Cieply, Michael (3 March 2010). "For Movie Stars, the Big Money Is Now Deferred". The New York Times. https://www.nytimes.com/2010/03/04/movies/04stars.html. 
  4. ↑ "first dollar / first dollar gross - Lexikon der Filmbegriffe" (in German). 2 August 2011. http://filmlexikon.uni-kiel.de/index.php?action=lexikon&tag=det&id=2885. 
  5. ↑ "House of Commons - Culture, Media and Sport - Sixth Report". 18 September 2003. https://publications.parliament.uk/pa/cm200203/cmselect/cmcumeds/667/66717.htm. 
  6. ↑ Cones, John W. (1997). The Feature Film Distribution Deal: A Critical Analysis of the Single Most Important Film Industry Agreement. Southern Illinois University Press. p. 31. ISBN 978-0-8093-2081-3. https://books.google.com/books?id=EoeJ7VmwnDIC&pg=PA31. 
  7. ↑ Goldstein, Patrick; Rainey, James (3 August 2009). "Hollywood gets tough on talent: $20-million movie salaries go down the tubes". Los Angeles Times. https://latimesblogs.latimes.com/the_big_picture/2009/08/want-to-make-10-million-a-movie-forget-about-it-hollywood-gets-tough-on-talent.html. 
  8. ↑ 8.0 8.1 Vogel, Harold L. (2011). Entertainment Industry Economics: A Guide for Financial Analysis. Cambridge University Press. p. 228. ISBN 978-1-107-00309-5. https://books.google.com/books?id=BfyFFCyRvX0C&pg=PA228. 
  9. ↑ Kroon, Richard W. (2010). A/V A to Z: An Encyclopedic Dictionary of Media, Entertainment and Other Audiovisual Terms. McFarland & Company. p. 280. ISBN 978-0-7864-4405-2. https://books.google.com/books?id=HjmNAgAAQBAJ&pg=PA280. 
  10. ↑ 10.0 10.1 Bacardi, Francesca (22 January 2014). "Jonah Hill Was Paid $60,000 for 'Wolf of Wall Street'". Variety. https://variety.com/2014/film/news/jonah-hill-was-paid-60000-for-wolf-of-wall-street-1201066745/. 
  11. ↑ Cieply, Michael (11 November 2007). "Hollywood strike underlines bleak outlook for movie business". The New York Times. https://www.nytimes.com/2007/11/11/business/worldbusiness/11iht-strike.4.8286935.html. 
  12. ↑ Welkos, Robert W. (15 December 2007). "Freddie Fields, 84, talent agent to stars". The Boston Globe. http://archive.boston.com/bostonglobe/obituaries/articles/2007/12/15/freddie_fields_84_talent_agent_to_stars/. 
  13. ↑ Fisher, Luchina (18 October 2013). "Role Reversal: Actresses Over 40 Top Hollywood". https://abcnews.go.com/Entertainment/sandra-bullock-40-female-stars-ruling-hollywood/story?id=20600627. 
  14. ↑ "Hollywood's biggest paydays". The Daily Telegraph. https://www.telegraph.co.uk/culture/film/10665545/Hollywoods-biggest-paydays.html?frame=2836328. 
  15. ↑ Finke, Nikki (29 April 2011). "Arnold's Payday: $10 Million Plus 25% First Dollar Gross For Schwarzenegger's Next Film". Deadline Hollywood. https://deadline.com/2011/04/arnold-schwarzenegger-making-10-million-plus-25-first-dollar-gross-on-next-film-127041/. Retrieved 30 March 2019. 
  16. ↑ Bart, Peter (17 January 1999). "Movie Math: A Study in Profit and Gloss". The Washington Post. https://www.washingtonpost.com/archive/lifestyle/style/1999/01/17/movie-math-a-study-in-profit-and-gloss/8b3b61be-519c-4525-bde2-7b49dda552d7/. 
  17. ↑ Fernandez, Jay A. (11 September 2008). "Film mogul Tyler Perry takes his biggest risk". Philadelphia Media Network. https://www.philly.com/philly/entertainment/20080911_Film_mogul_Tyler_Perry_takes_his_biggest_risk.html. 
  18. ↑ Ago, Alessandro (2009). "SCA Alumni Screening Series: INGLOURIOUS BASTERDS". https://cinema.usc.edu/events/event.cfm?id=10854. 
  19. ↑ Kit, Borys (18 November 2017). "How Sony Nabbed Quentin Tarantino's Manson Movie". The Hollywood Reporter. https://www.hollywoodreporter.com/news/how-sony-nabbed-quentin-tarantinos-manson-movie-1059742. Retrieved 30 March 2019. 
  20. ↑ D'Alessandro, Anthony (16 May 2020). "Is 'Tenet' Still Sticking On Its July 17 Release Date?". Deadline. https://deadline.com/2020/05/tenet-coronavirus-release-date-change-movie-theaters-1202928823/. Retrieved 16 May 2020. 
  21. ↑ Fleming, Michael (13 June 2008). "Hollywood all grossed out". https://variety.com/2008/film/features/hollywood-all-grossed-out-1117987471/. 
  22. ↑ Masters, Kim (27 February 2014). "Jason Blum's Crowded Movie Morgue: Downside of a Microbudget Empire". The Hollywood Reporter. https://www.hollywoodreporter.com/news/jason-blums-crowded-movie-morgue-683212. Retrieved 30 March 2019. 
  23. ↑ "Actors Who Made over $100 Million from One Movie". 7 May 2023. https://movieweb.com/actors-made-over-100-million/#will-smith-in-men-in-black-3. 
  24. ↑ "Tom Cruise will reportedly get at least $100 million for 'Top Gun: Maverick' — one of the biggest paydays for an actor ever". https://www.businessinsider.in/entertainment/news/tom-cruise-will-reportedly-get-at-least-100-million-for-top-gun-maverick-one-of-the-biggest-paydays-for-an-actor-ever/articleshow/93034144.cms. 



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