Economic downturn affecting Hollywood stars’ earnings
With the economy not bouncing back to a more stable level, it has been revealed that even Hollywood stars are starting to feel the pinch. There are no salary hikes, and the stars will have to take whatever is being offered to them.
“Salaries are being cut. Unless you're Will Smith, you are not going to get 20 million dollars a movie anymore,” the New York Post quoted an insider as saying. Added to the cut, “back-end” deals, which previously enabled a star or big-name director to get a cut of the gross, have now been stopped, and they are no longer being offered to anyone, not even Steven Spielberg.
There will no longer be negotiations between the stars and the movie studios, and if a studio makes an offer and the star refuses it, the studio will just look for someone else.