After big budget films bombing at box-office A-list actors cutting down remuneration
Following the disaster of big budget films with big starcast at the box-office such as Bade Miyan Chote Miyan, Maidaan and
Fighter, the production houses are forced to have a close look at costs and their film slates.
Now the A-list actors have come to understand the plight of a producer when a big budget bombs at the box-office. They have started cutting their fees by up to 30% and taking a large part of remuneration from profits. This new trend helps get films off the ground in a challenging funding environment. Producers find it easier to raise funds as actors take smaller upfront fees, easing the burden on the production houses.
Several top names have cut their rates by up to 30% compared to what they charged during the pandemic, a sign of the times and a necessary move to keep the industry moving forward.
Generally speaking, an A-list actor’s remuneration forms more than 50% of the cost of production of a film.
Girish Johar, a producer known for Hindi films like Jazbaa , Rustom
Tadka said, “Today, there is a clear focus on the cost of films. Many A-list actors have become more realistic and are reducing their fees by up to 30% on a project-to-project basis. This way, at least films are getting started.”
In addition to reducing their remuneration, some A-list actors are now agreeing to take 20-30% of their fees upfront and the remaining 60-70% from the film’s profits, say industry experts.
As per a founder and Group CEO of a leading talent management agency, speaking on the condition of anonymity, the number of films each production house is making has decreased. The mantra now is to create fewer, bigger, and better films.
Adding that, increasingly, the industry is following skin-in-the-game strategy in order to kick-start films. A-list actors who have reduced their fees take a basic fee and they secure a large part of their remuneration from the profits of a film.”
Producers noted that this approach, where A-list actors take a smaller upfront fee, eases the burden of raising funds for films and creates a win-win situation for all stakeholders.
Sunir Kheterpal, a film producer at Athena E&M, recognised for films like Badla Kesari and Dobaaraa said, that the current business ecosystem has made a collaborative commercial structure necessary, where talent comes in at a fixed cost but shares in the upside when a film succeeds at the box office and went on to add that this more cooperative approach between key stakeholders—financiers, studios, talent, and producers—is an organic response to the industry’s current state of affairs.
Given that star fees account for a significant portion of the costs, when an A-list actor reduces their fee and accepts only a basic amount, the producer then faces the task of raising funds solely for the production costs, which are considerably lower than the actor’s typical fee.
Suniel Wadhwa, co-founder of Karmic Films and a veteran film distributor known for titles like Three of Us All India Rank and Lal Salaam Hindi, articulated, that the situation in the industry is worrisome. Costs are being closely monitored on all fronts. Today, only those projects are moving forward where A-list actors have reduced their fees and are taking a smaller basic amount. This makes it relatively easier for producers to raise funds for the film’s production costs.”
He went on to add that this structure is a practical solution for launching new projects amid the industry’s cost and funding challenges.
“This is a sustainable model when the primary focus is on raising money solely for the production costs,” Wadhwa said. “Producers will find it relatively easier to secure funds for production, either by selling digital rights to streaming platforms or by obtaining support from a studio. In this way, at least the film gets off the ground.”
News Edit KV Raman
