Hollywood finally wises up: Cut down on "first-dollar gross" deals, which guarantee actors part of the film's box-office revenues from the first dollar earned, even if a film flops. Instead, provide small, upfront payments to actors and a percentage of receipts after the studio recovers its investment. Makes perfect sense, especially during these tough economic times.
According to the Wall Street Journal:
"For two new projects, Viacom Inc.'s Paramount Pictures has done away with [first-dollar gross deals], even though it has landed top talent. In "Dinner for Schmucks," with Steve Carell, and "Morning Glory," starring Harrison Ford, the actors accepted "back-end" deals, in which they get a portion of the gross, but only after the studio and its financing partners have recouped their costs.
"The days . . . where the star gets whatever he wants and gets paid through the roof—those days are over, for everybody," says Eric Gold, a producer and manager who represents top talent including Jim Carrey and Ellen DeGeneres. "You can be the hottest thing in Hollywood, but if the economics don't match it, it doesn't mean anything . . . . The studios are pushing back and they have to play the margins."
Muser of NM @ Apr 02, 2009 13:43:32 PM