How Stephen King Makes Millions from "Welcome to Derry" Without Writing a Word
A breakdown of King’s likely payday from HBO’s It prequel—and what it teaches us about creative control and long-game profits.
The High-Earning Author Series is an ongoing investigation into how today’s most successful authors are really making their money. From royalties and rights deals to adaptations, speaking gigs, and side businesses, we’re pulling apart the numbers—and the narratives—to reveal what it takes to reach the top. This isn’t about glamour. It’s about strategy, scale, and what authors give up (or guard) to earn big.
Let’s talk about the dream.
Not the dream where you publish a book and make a few hundred quid on Kindle royalties.
The other dream. The one where your story gets picked apart, repackaged, and reimagined by a team of well-funded creatives—and you still cash a cheque that could pay off your mortgage ten times over.
That’s the Stephen King dream.
And right now, it looks a lot like Welcome to Derry—the HBO prequel series inspired by King’s 1986 horror classic, It. A show King isn’t writing. Isn’t producing. And probably isn’t watching with bated breath. But it’s putting serious money in his pocket.
Let’s break it down.
The Book That Birthed a Franchise
It wasn’t an overnight success.
King started writing the novel in 1981 and didn’t finish until 1985. Clocking in at 1,138 pages, it’s the kind of book you could use as a blunt-force weapon. But beneath the bulk is a story of childhood trauma, shapeshifting horror, and a small town that never lets you go. It was King at his most ambitious—and it paid off.
It became a bestseller. Then a 1990 TV two-part miniseries starring Tim Curry as Pennywise, a performance that haunted a generation of millennials. Then a blockbuster film in 2017. And a billion-dollar sequel in 2019.
Now? It’s a universe. And that universe is expanding—with or without its original architect.
Enter: Welcome to Derry
The upcoming HBO series, developed by Andy and Barbara Muschietti and Jason Fuchs, dives into the lore of Pennywise and the town’s disturbing history. Set in 1962, it explores events leading up to the original story, including the burning of the Black Spot, a significant event in Derry's past. Bill Skarsgård reprises his role as Pennywise, bringing the chilling clown back to life.
And here’s where it gets interesting: Stephen King didn’t write it. He’s not producing it. But he did allow it. That’s no small thing.
King is notoriously protective of his work, especially when it comes to film and TV adaptations. He’s gone on record about hating The Shining (yes, that Shining), criticising Stanley Kubrick’s version as “a beautiful car with no engine.” He’s blocked adaptations before. Reclaimed rights. And has a well-documented tendency to weigh in, often harshly, when studios miss the point of his books.
So when a studio gets permission to build on one of his most iconic stories without his direct involvement, it’s safe to assume two things:
1. The cheque was sizeable.
2. The terms were crystal clear.
So, What’s He Getting Paid?
Here’s the thing: King doesn’t sell his rights. He licenses them.
That means Warner Bros. and HBO didn’t buy It. They’re renting it with premium terms.
Based on industry norms for IP like this, here’s what King is likely earning:
Licensing Fee:
Big IP = big price.
Estimated: $1–3 million upfrontPer-Episode Royalty:
Major IP holders often get paid per episode, even if they never read the script.
Estimated: $50,000–$150,000 per episode
(That’s $450K–$1.35M across 9 episodes)Executive Producer Credit (Honorary):
A symbolic gesture, often worth something real.
Estimated: $250K–$500K
Estimated total? Somewhere between $1.5M and $5M+, depending on backend points and streaming performance.
And let’s be clear: that’s without writing a single line of dialogue.
Sources & Precedent
King’s Known Licensing Style: King has historically offered dollar babies—$1 options to student filmmakers—but for studios, he plays hardball. He retains tight control over his IP and prefers licensing to selling.
Comparable Deals: Neil Gaiman reportedly negotiated $3M+ for licensing The Sandman to Netflix, plus backend. George R. R. Martin earns $10M+ annually from Game of Thrones–related work.
Industry Norms: Per WGA and PGA breakdowns, IP holders with EP titles often earn six to seven figures just for existing.
What This Means for You (and Me)
Let’s be honest: none of us are Stephen King. Yet. But the model? That’s the part worth studying.
You write the book. You protect the rights. You build something so rich in world and character that a studio has to come knocking.
And when they do, you license. Not sell.
Because one day, you might find yourself being paid seven figures just to nod politely at a press release.
The Bastardly Takeaway
Write with legacy in mind. Craft worlds so dense they could hold spinoffs. Retain your rights. And dream bigger than book sales.
Because the real money?
It comes when you don’t lift a finger.
H. J. x
Read more articles in the High-Earning Author Series here —> https://hjsmithwilliams.substack.com/t/high-earning-author-series
New to me and my writing?
I’m H. J. Smith-Williams: novelist, screenwriter (in progress), and founder of the £1.5M Project—a year-long experiment to see how far words, wit, and stubborn execution can go.
You can expect fiction, industry breakdowns, unapologetic ambition, and the occasional author confession.
If that sounds like your kind of chaos, you’re in the right place.
Find all the writer’s tools & resources below
Great breakdown here!