Writing
After the financial success of Pee-wee's Big Adventure (1985), Burton became a "bankable" director and began working on a script for Batman with Sam Hamm. While Warner Bros. was willing to pay for the script's development, it was less willing to green-light Batman. Burton had become disheartened by the lack of imagination and originality in the scripts he had been sent, particularly Hot to Trot.
Michael McDowell and Larry Wilson formed a partnership (Pecos Productions) with entertainment attorney Michael Bender, and Beetlejuice was their first original project. After developing the story, McDowell and Wilson decided they would write the first draft of the screenplay together, while Wilson would only take 'Story By' credit, as well as his 'Producer' credit.
Burton had gotten to know and worked with McDowell and Wilson (who co-wrote the script for "The Jar", an episode of Alfred Hitchcock Presents that Burton directed). Burton read their first draft of Beetlejuice and liked it, but had other projects that kept him from becoming involved at that time.
The original script is far less comedic and much darker; the Maitlands' car crash is depicted graphically, with Barbara's arm crushed and the couple screaming for help as they slowly drown. A reference to this remains: Barbara remarks that her arm feels frozen upon returning home as a ghost. Instead of possessing the Deetzes and forcing them to dance during dinner, the Maitlands cause a vine-patterned carpet to come to life and attack them by lashing them to their chairs.
The character of Betelgeuse—envisioned in the first draft as a winged demon who takes on the form of a short man—is also intent on killing the Deetzes rather than scaring them and wants sex from Lydia instead of marriage. In this version of the script, Betelgeuse need only be exhumed from his grave to be summoned, after which he is free to wreak havoc; he can be summoned, but not controlled, by saying his name three times and wanders the world freely, tormenting different characters in different manifestations.
In another version of the script, the film concludes with the Maitlands, Deetzes, and Otho conducting an exorcism ritual that destroys Betelgeuse, and the Maitlands transforming into miniature versions of themselves and moving into Adam's model of their home, which they refurbish to look like their house before the Deetzes moved in.
Co-author and producer Larry Wilson has talked about the reaction to the first draft by a prominent executive at Universal, where Wilson was employed at the time:
I won't name names here, but I worked at Universal Studios at the time. I was director of development for the director Walter Hill. I had a very good relationship with a very prominent executive at Universal. He liked me, and he liked what I was doing with Walter, and the material I was bringing in.
I gave him Beetlejuice to read, and I gave it to him on a Friday, and on Monday his assistant called me and said "well, he wants to meet with you". My initial reaction was "wow! He'd read it. He must have loved it or he wouldn't have wanted to see me so soon." But I went into his office, and he literally said, "what are you doing with your career?"
"This piece of weirdness, this is what you're going to go out into the world with? You're developing into a very good executive. You've got great taste in material. Why are you going to squander all that for this piece of shit" was basically what he was saying. It goes to show, right? Shortly after that, we sold it to the Geffen Company.
Skaaren's rewrite shifted the film's tone, eliminating the graphic nature of the Maitlands' deaths and further developing the concept created by McDowell and Wilson that the Afterlife is a complex bureaucracy. Skaaren's rewrite also added to McDowell and Wilson's depiction of the limbo that keeps Barbara and Adam trapped inside their home; in the original script, it takes the form of a massive void filled with giant clock gears that shred the fabric of time and space as they move. Skaaren had Barbara and Adam encounter different limbos every time they leave their home, including the "clock world" and the sandworm world, identified as Saturn's moon Titan. Skaaren also introduced the leitmotif of music accompanying Barbara and Adam's ghostly hijinks, although his script specified R&B tunes instead of Harry Belafonte and was to have concluded with Lydia dancing to "When a Man Loves a Woman".
Skaaren's first draft retained some of McDowell's Betelgeuse's more sinister characteristics but toned the character down to make him a troublesome pervert rather than blatantly murderous. Betelgeuse's true form was that of the Middle Eastern man, and much of his dialogue was written in African-American Vernacular English. This version concluded with the Deetzes returning to New York and leaving Lydia in the care of the Maitlands, who, with Lydia's help, transform their home's exterior into a stereotypical haunted house while returning the interior to its previous state. It also featured deleted scenes such as the real estate agent, Jane, trying to convince the Deetzes to allow her to sell the house for them (having sold it to them in the first place—Charles and Delia decline) and a revelation of how Betelgeuse had died centuries earlier (he attempted to hang himself while drunk—having been rejected by a woman—only to mess it up and die slowly by choking to death rather than quickly by snapping his neck) and wound up working for Juno before striking out on his own as a "freelance bio-exorcist".
Retrospectively, McDowell was impressed with how many people made the connection between the film's title and the star Betelgeuse.