Stars are Lowering their Sky-high Fees to Get Movies Rolling

According to several film producers, A-list actors known for their box office appeal are taking a more realistic approach by lowering their fees on a project-by-project basis to help get films off the ground in today's challenging funding environment and amid a string of high-profile failures.

Several big brands have reduced their fees by up to 30% compared to what they charged during the pandemic, a reflection of the times and an essential measure to keep the industry going forward. In general, an A-list actor's salary accounts for more than half of a film's production budget.

Girish Johar, a producer known for Hindi films such as Jazbaa (2015), Rustom (2016), and Tadka (2022), stated, "Today, there is a distinct focus on film costs. Many A-list performers have grown more practical, cutting their pay by up to 30% from project to movie. This way, at least some films are getting begun."

Some A-list actors are increasingly consenting to collect 20-30% of their salaries up front and the remaining 60-70% from the film's profits, according to industry experts. The failure of prominent films such as Bade Miyan Chote Miyan, Maidaan, and Fighter has compelled production companies to scrutinize their costs and film slates.

"The quantity of films produced by each production studio has declined. "The mantra now is to make fewer, bigger, and better films," stated the founder and group CEO of a major talent management firm. "The business is increasingly using a skin-in-the-game technique to kickstart projects. A-list performers who have cut their salaries accept a base charge and receive a significant portion of their pay from film earnings."

Producers highlighted that this technique, in which A-list actors pay a lower upfront fee, reduces the stress of generating funding for films and produces a win-win situation for all parties.

Sunir Kheterpal, a film producer at Athena E&M who has worked on films such as Badla (2019), Kesari (2019), and Dobaaraa (2022), stated, "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."

He went on to say that this more collaborative approach among key stakeholders—financiers, studios, artists, and producers—is an organic response to the industry's current state of affairs. Given that star fees make for a substantial chunk of the costs, when an A-list actor decreases their pay and takes only a basic amount, the producer is left with the burden of generating funds simply to cover filmmaking expenses.

Suniel Wadhwa, cofounder of Karmic Films and a seasoned film distributor known for titles such as Three of Us (2022), All India Rank (2023), and Lal Salaam (Hindi, 2024), stated, "The situation in the industry is concerning." Costs are closely monitored on all fronts. Today, only those projects are moving forward in which A-list performers have decreased their costs and accept a lower base amount. This makes it easier for producers to cover the film's production costs.