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Blair Witch Project's Financial Controversy

Forbes

102

In a recent Forbes article, the financial dispute between the original actors of 'The Blair Witch Project' and Lionsgate was discussed extensively. Despite the film's phenomenal success, grossing over $248 million globally, the lead actors—Joshua Leonard, Heather Donahue, and Michael C. Williams—received only $11,000 for their participation in the 1999 indie horror movie. They now claim they are owed millions in back pay and residuals. This case exemplifies 'Classic Hollywood accounting,' a practice where studios allegedly hide financials to avoid profit sharing. The actors argue that they contributed significantly to the film’s success and feel disrespected by the lack of proper acknowledgment and financial compensation from Lionsgate, the current franchise owner. They are pushing for industry standards like SAG-AFTRA agreements and more transparent financial dealings. The original modest contract guaranteed the actors 1% of net profits if the movie grossed over $1 million, but due to opaque accounting practices, this has not materialized. The actors' plight is a stark reminder of contractual intricacies and financial disputes in Hollywood, especially for non-union films.

Highlights

• Joshua Leonard learned about the Blair Witch reboot while battling COVID-19.
• Leonard expressed his frustration over 25 years of disrespect via Instagram.
• Lionsgate has not publicly addressed the actors' complaints or requests.
• The Blair Witch Project grossed $248 million globally on a $35,000 budget.
• The original actors were paid $11,000 each for their work on the film.
• Forbes estimates the actors have since earned $375,000 each primarily from settlements.
• Had their original contract been honored, the actors would have earned around $1.3 million each.
• Actors cite 'Classic Hollywood accounting' for not receiving their due profits.
• The actors request residuals, workers' rights, and acknowledgment from Lionsgate.
• Their original contract promised 1% of net profits if the film grossed over $1 million.