Citing sources, the report says Watson will get $3 million upfront for her role but her paycheck could be larger depending on the film's success.
Watson's deal for the film, which was released on March 17, is similar to actress Angelina Jolie's for the film "Maleficent," according to The Hollywood Reporter. Jolie earned $20 million plus profit participation for "Maleficent" in the title role. The 2011 film brought in a worldwide gross income of about $759 million.
The Hollywood Reporter noted that "Beauty and the Beast" is projected to make $120-$140 million in North America during its opening weekend. The film has already broken a Fandango record for advanced ticket sales of family films.
Disney's studio is set to release more live-action remakes in the coming years, including "The Lion King," "Mulan" and "Mary Poppins Returns."
Yet, even with a large possible payout on the horizon for Watson, The Hollywood Reporter claims Disney's studio is known by talent representatives to be frugal with its financial resources.
Disney did not immediately respond to CNBC's request for comment.
Read more about the story on The Hollywood Reporter's website.