Why do actors get paid tens of millions for their movies instead of a normal salary?
In: Culture
99% of all actors are paid a salary. They get a set amount for a specific movie/TV episode.
Stars however have agents who may negotiate thier contract to get a better deal. This may include big up front payments or “residuals” this is a share of the profit once the film is released.
Basically if the only reason that the audience is going to see a film is because Tom cruise or Stallone is in it, then surely they should get a relatively large slice of the profit.
The Screen Actors Guild sets minimum wages across the industry.
Mostly because we value entertainment very highly in our societies. Same reason sports is also a very high paying job; people want to watch movies and sports, so it high in demand, and has a lot of money going IN.
One side wants to offer lowest wage, the other side wants the highest wage.
Either they both agree on number, or a contract doesn’t happen.
“Everything is worth what its purchaser will pay for it.”
Because they’re talented and entertaining enough that millions of people want to watch them and that generates $millions/billions.
In short, they are worth the money.
Because that’s what they charge for starring in a movie, and the people paying are okay with paying that much because they hope to make more money than it costs.
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