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In recession, even Hollywood cuts pay
In the times of global recession, 'first-dollar gross' deals, which promise actors even when films flop, are out of favour. Hollywood has become risk-averse, forcing actors to share in a film's success or failure, reports Wall Street Journal.
In the times of global recession, even Hollywood has become risk-averse, forcing actors to share in a film's success or failure, reports Wall Street Journal.
“First-dollar gross” deals, which promise actors even when films flop, are out of favour.
Top actors have always drawn deals paying a percentage, as high as 20%, of a studio's box-office take from the very first dollar made, regardless of losses made by the studio.
"They're just not going to keep losing vast amounts of money while paying out millions to the first-dollar-gross players," one agent said. The industry is already affected by slumping DVD sales and dropping Wall Street investment funding.
Back-end deals, which call for smaller up-front payments and a percentage of receipts counted after the studio recoups its investment, have recently attracted talent like Steve Carell and Harrison Ford.
