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Money winners of 2008: Johnny Depp, once and future pirate captain

This post is part of our feature on Money Winners of 2008. See all 20.

Johnny Depp is one quirky thespian. Whether he's playing a Gothic mutant with scissors for hands, a sadistic throat-slitting barber, or one wacked-out pirate who sounds a lot like a drunken guitarist from one of the greatest rock 'n roll bands of all time, Depp works overtime to extract as much weirdness from a part as he conceivably can so he can present a compelling performance to paying audiences at the local multiplex. And he gets paid pretty well for his services.

In fact, he's set to earn multiple millions of dollars to appear in a fourth Pirates of the Caribbean movie. That's right, if you thought Disney (NYSE: DIS) was thinking of stopping at the third one (like maybe it should), then you turned out to be wrong. It's difficult to say exactly how much Depp will make from the next Pirates adventure. The Movie Blog claims that the number is as high as $75 million. I've read other reports that confirm this figure, but I've also read speculation that the value relates more to the potential of his earnings power in terms of gross participation, merchandise, etc. In other words, it might be reasonable to assume that Depp will earn as high as $75 million if Pirates 4 is a huge box-office hit on the level of its predecessors. He may, however, receive a lesser amount upfront. I believe the latter to most likely be the case based on the way Hollywood works. We unfortunately will never know the specific details because the SEC does not require public media companies to report talent compensation (in my opinion, they should). No matter what, though, he'll be grossing a lot of bucks when he returns as Captain Jack Sparrow.

Continue reading Money winners of 2008: Johnny Depp, once and future pirate captain

Should film studios always spread the risk?

General Electric's (NYSE: GE) Universal Pictures asset received some good news the other day -- 75% of the studio's movie projects for the next few years will be funded, in part, by a financing entity known as Relativity Capital. According to The Hollywood Reporter, the deal calls for Relativity to help cover production costs, but not marketing programs; it could see about $500 million spread out over as many as 45 movies. Also, this is being described as a bona fide partnership -- not only will Relativity share in profits generated by ancillary channels, such as home video and television sales, but it will also have the power to co-greenlight a project, and it will be able to review the talent and budget attached to each project.

Financing by hedge funds and private equity is certainly not new in Hollywood; it's been around for a long time. So has the practice of selling off international rights and partnerships between studio competitors. Remember James Cameron's Titanic? It took the studio segments of both Viacom (NYSE: VIA) and News Corp. (NYSE: NWS) to shoulder that costly celluloid endeavor. But, although I recognize that filmmaking is extremely risky, and that a flop is very much in the cards whether or not big stars are in a film, I also have to wonder if it might be better for studios to simply lessen their risk by making much cheaper movies and foregoing the distribution of risk. What's my beef with distribution of risk? Well, I'm not the first to say this, and it's pretty obvious at any rate: hedge your bet, and you also limit your upside score in terms of a windfall.


Continue reading Should film studios always spread the risk?

95 years later, The Titanic still commands attention and dollars

In April 1912, the RMS Titanic, a luxury passenger liner billed as unsinkable, took its maiden voyage and was felled by an iceberg. Lifeboats were scarce, and more than 1,500 passengers perished in the icy seas of the North Atlantic. The tragic irony of the surrounding circumstances are fit for a movie ... but we'll get to that later.

A Christie's auction in New York City last week featured memorabilia from the ill-fated voyage, including a lengthy handwritten description of the ordeal, penned by a 16-year-old survivor. The account, which mentions witnessing the "most terrible shrieks and groans from the helpless and doomed" from her perch in a lifeboat, attracted $16,800. The auction featured 18 lots in total, including telegrams, letters, and deck logs. In all, the products fetched $193,140. An original list of the first-class passengers aboard the ship fetched $48,000, surpassing pre-sale estimates.

Sunday night, flipping through cable stations, I came across James Cameron's epic blockbuster tribute to the sunken ship, which was released by News Corp.'s (NYSE: NWS) 20th Century Fox and Viacom's (NYSE: VIA) Paramount Pictures almost 10 years ago. It remains the highest-grossing film of all time, with worldwide box office receipts of over $1.8 billion.

I'll admit, with mild sheepishness, that I was among the throng of Titanic devotees that took multiple trips to the theater (my count was five) to follow the story of Jack and Rose. While it's a rare moment that I pull out my DVD to spend more than 3 hours in anticipation of a teary finale, it's still a good movie, made great through the performances of Leonardo DiCaprio and Kate Winslet before they were superstars.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

James Cameron finds Jesus ... No, not like that

Remember when James Cameron directed the Terminator movies and he was unequivocally regarded as awesome? Then he made this little period piece about some boat sinking, proclaimed himself "King of the World," which was perceived as arrogant but was really just a quote, traded in wives, and was never really heard from for nearly a decade.

So what's the best way to move back into the limelight? Find Jesus. And not in the same way that Stephen Baldwin has. The Oscar-winning filmmaker said yesterday that a group of stone boxes, originally discovered two decades ago within a hillside tomb in Jerusalem, once held the remains of Jesus Christ and Mary Magdalene.

Continue reading James Cameron finds Jesus ... No, not like that

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Last updated: November 12, 2009: 07:43 AM

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