Steven Spielberg and Peter Jackson don't hear "no" very often.
But after they submitted a final budget of $130 million for their 3-D animated movie "Tintin," based on the Belgian comic strip, to Universal Pictures, the studio balked. The decision has left the two powerful filmmakers scrambling to find another financial partner.
When even Spielberg and "The Lord of the Rings" director Jackson, who have made some of the biggest blockbusters in history, can't get their movie made, you know something is up in Hollywood. Universal's refusal to finance "Tintin" underscores how in today's tough economic climate, bottom-line concerns trump once-inviolable relationships between studios and talent.
Until now, however, filmmakers of Spielberg's and Jackson's stature were thought to be immune to the brass-knuckles tactics of the studios. Squeezed by a business trapped between rising costs and leveling revenues, the two filmmakers are Hollywood's latest -- and most prominent -- victims of cost containment.
Movie studios have long entered into financial arrangements with talent for reasons other than pure economic reward. Sometimes a deal is made for the prestige of associating with a famous actor or director; sometimes it is done in the belief that half a financial loaf from a proven hit maker is less risky than a whole one from an untested filmmaker; and still other times it happens simply to keep relations warm so the talent will want to work for the studio.
The particular problem for Universal with "Tintin" is that Spielberg's and Jackson's involvement comes with a huge price tag. The two filmmakers together would command such a large percentage of the movie's revenue as part of their compensation -- without putting up any of the capital themselves, as is typical in Hollywood -- that it takes a substantial slice of the profit off the table for the backers.
Studios in recent times have shunned some costly deals with filmmakers and stars. Fox decided not to make the comedy "Used Guys" in 2006 with Jim Carrey and Ben Stiller after concluding the deals with the actors outweighed the odds of making its money back. And many in Hollywood also remember how Paramount Pictures just barely broke even the same year on "Mission: Impossible III." Even though the movie grossed nearly $400 million worldwide, its star and producer Tom Cruise pocketed more than $80 million.
