Hollywood Stars Taking Huge Pay Cuts Amid Declining Studio Profits
In a piggyback of a previous NewsBusters report concerning Hollywood producing less films in the near future, The Times Online is reporting (hat tip to the Drudge Report) that movie stars are going to take less money for their services to assist studios in becoming more profitable:
“Facing declining cinema audiences, Hollywood is trying to persuade its top actors to set an example by cutting back a lucrative arrangement known as ‘first dollar’, under which the director, producer and stars receive a share of a film’s box office take regardless of whether the studio has covered its filming costs.”
Apparently, this is going to impact some of Hollywood’s top stars:
“No actors will publicly admit that they have lowered their price but industry reports suggest that [Tom] Hanks is not alone. Cameron Diaz, who is second only to Julia Roberts in the female stars’ pay scale but still earns on average half a top male star’s salary, is said to have agreed to forgo her ‘first dollar’ deal to star in a romantic comedy called Holiday.”
This makes one wonder if there is going to be a groundswell of support from Hollywood to extend the president’s 2001 and 2003 tax cuts. After all, how are people like Diaz going to make ends meet receiving a paltry $10 million for two months work?