My Fair Lady (film) / Warner Bros. & CBS / 1960s
Behind the fairy-tale extravagance of My Fair Lady lay a ruthless, high-stakes dealmaker’s picture of studio-era commerce. In February 1962 Warner Bros. paid an unprecedented $5.5 million for the screen rights to Lerner & Loewe’s hit — not merely a lump sum but a staggering package that also included 47.25% of the gross above $20 million. That headline number, however, obscures a second piece of boardroom theater: CBS chief William S. Paley had financed the original Broadway show in return for music-rights and slipped an unusual condition into the Warner contract — ownership of the film negative would revert to CBS seven years after the film’s release. The bargain meant Warner spent lavishly to produce what became the most expensive U.S.-shot picture to that date (a $17 million budget) only to see the master negative and long-term control return to another corporate interest in 1971.
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