20th Century Fox reported paid a $550,000 licensing fee to the Smithsonian Institution in Washington for use of its name in “Night at the Museum: Battle of the Smithsonian.”
The 2009 family-adventure film, which starts production shortly, already lays claim to a U.S. theatrical release a year from now on May 22, 2009 and its predecessor was a sleeper hit grossing $251 million domestically in 2006.
The decision to license rights to the Smithsonian name is a marketing decision that gives a fresh angle for promotion, a degree of respectability and credibility for the sequel’s merchandising. Reports add that in addition to a lump-sum payment, what is the national museum in Washington D.C. gets 7.5% of net receipts from movie-related merchandise with the Smithsonian name.
Smithsonian officials at the federal government-run institution say they were interested in the association because the 2006 “Night” film piqued interest in museum attendance. For the upcoming second version, the museum reviewed scripts to make sure it is comfortable with its presentation.
Besides the $500,000 upfront fee and 7.5% merchandising royalty, Fox is also paying $200,000 in location fees to film in and outside the museum for four days, plus penalty fees if the production stays longer. In addition, the Smithsonian gets bonus fees of $125,000 if the sequel’s box office hits $200 million and another $250,000 if the sequel passes $250 million. Those are escalators that Fox would love to pay because it would mean the studio is making even more money from “Night at the Museum: Battle of the Smithsonian.”
Separately, at the end of the 2008, Fox separately snagged the giant McDonald’s quick-service restaurant chain for a major promotion with the second movie. It’s a coup because McDonald’s has 14,000 U.S. restaurants and another 1,400 locations in Canada. Also, restaurants are becoming increasing picky about movie associations, because of some recent misfires.
Related content:
- ‘Washington Business Journal’: Smithsonian Wants to be in Major Motion Pictures, Earn royalties, Expand the Brand
- FlowJournal.org: Museum TV and Hollywood Films: How the Smithsonian Became Big Media’s ‘Pile of Loot’
- ‘Los Angeles Times’: Smithsonian Museum Paid by Fox for Movie Role
- ‘Los Angeles Times’: Fox orders up a movie pact with McDonald’s
Leave a Reply