Tough Times As Hollywood Actors Take A Pay Cut
from the fortuna's-wheel dept
In the past we've suggested that instead of trying to find a business model that supports films with $200 million budgets, Hollywood studios should perhaps look at reducing their budgets. They're starting by cutting the enormous salaries typically afforded to actors, or at least restructuring the deals so that actors can't walk away with a huge payday if the film flops. Part of the realization is that movie returns are random, so it doesn't make sense to spend so much on on-screen talent, when on-screen talent accounts for just a small part of a film's success. In fact, of last year's ten biggest films, seven weren't driven by a major star. While Hollywood is typically obsessed with gross numbers, it would do well to put more emphasis on the bottom line.