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 (2015), Rustom (2016), and Tadka (2022), 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.”
| Film Funding Post Pandemic–Skin In The Game* | |
| 1 | Stars’ reduce fees by close to 30% from pre-pandemic fees on project to project basis |
| 2 | Stars’ fees form 45-55% of a film’s budget |
| 3 | Stars take a basic fee upfront of 20-30% of their reduced fees |
| 4 | Stars’ remaining fees come from profit–money generated after a film breaks even |
| 5 | Producers raises 45-50% funds for cost of production (95% of crew on board) |
| 6 | Studios or OTTs provide funds (lower than post release buying) for cost of production |
| *An estimate of a big budget film. May differ from project to project |
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.
The failure of top films like Bade Miyan Chote Miyan, Maidaan and Fighter has also forced production houses to look closely at costs and their film slates.
A founder and Group CEO of a leading talent management agency, speaking on the condition of anonymity, said, “The number of films each production house is making has decreased. The mantra now is to create fewer, bigger, and better films.”
He added, “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, known for films like Badla (2019), Kesari (2019), and Dobaaraa (2022), said, “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 added 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 (2022), All India Rank (2023), and Lal Salaam (Hindi, 2024), said, “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 added 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.”
