Daily Mail: Barry Diller says Hollywood actors AND execs should take pay cut

Story from Daily Mail:

Media mogul Barry Diller suggested that Hollywood's top-earning actors and executives take a 25 percent pay cut as he warns of a devastating collapse for the industry if the SAG-AFTRA and Writers Guild of America strikes are not settled soon.

The former Paramount and 20th Century Fox CEO, who is now the head of the media conglomerate IAC, appeared on CBS' Face the Nation on Sunday, where he weighed in on the issues that he called a 'perfect storm.'

'Everybody's probably overpaid at the top end,' Diller said. 'The one idea I had is to say, as a good faith measure, both the executives and the most-paid actors should take a 25 percent pay cut to try and narrow the difference between those who get highly paid and those that don't.'

Among the highest paid in industry is Tom Cruise, whose latest Mission Impossible film came to a halt due to the strike. Cruise has earned over $1 billion in his career and an estimated net worth of $600 million as of 2023, according to Forbes.

But it's not just the on-screen talent. Over $1.4 billion was raked in by Hollywood executives in 2021, up a startling 50 percent from 2018. Topping that list is Warner Bros Discovery chief David Zaslav, who made over $498 million from 2018 to 2022.

The strike is the first time film and television actors have taken industrial action since 1980, and the first time two major Hollywood unions have been on strike at the same time since 1960.

The last time actors and writers joined forces against Hollywood's executives was in 1960, when Marilyn Monroe was at the peak of her powers and Ronald Reagan was the head of the actor's union.

Under the rules of a strike, SAG-AFTRA members would not be able to film any movie or TV series, take part in any press or film premieres or promote anything at this month's San Diego Comic-Con.

On Sunday, Diller told host Margaret Brennan that the entertainment industry faces an 'absolute collapse' if the strike doesn't resolved soon and that people will start pulling their streaming subscriptions because 'there will be nothing to watch.'

'What will happen is, if in fact, it doesn't get settled until Christmas or so, then next year, there's not going to be many programs for anybody to watch,' he said, adding that there should be a settlement deadline of September 1.

'So, you're gonna see subscriptions get pulled, which is going to reduce the revenue of all these movie companies, television companies, the result of which is that there will be no programs. And at just the time, strike is settled that you want to get back up, there won't be enough money.'

Diller also called the current challenges a 'perfect storm.'

'You had Covid, which sent people home to watch streaming television and killed theaters,' Diller said. 'You've had the results of huge investments in streaming which have produced all these losses for all these companies that are now kind of retrenching. So at this moment, it's kind of a perfect storm.'

In the first major event impacted by the actors' strike, Disney has held a premiere on Saturday for the upcoming live-action movie 'Haunted Mansion' without stars Tiffany Haddish and Jamie Lee Curtis.

Hollywood was plunged into chaos on Thursday as SAG-AFTRA members walked out - and as a result, the red carpet held in front of the theme park's Haunted Mansion ride was notably bereft of celebrities.

In lieu of actors like Danny DeVito, LaKeith Stanfield, and Rosario Dawson being on the red carpet, Disney brought on their theme park characters to do the rounds instead. Dan Levy, Hasan Minhaj, Marilu Henner, and Lindsay Lamb were also meant to be at the event in Anaheim, California - but did not while on strike.

Their picketing has shut down production across the entertainment industry, plunging it into chaos.

The event comes three days after Bob Iger slammed actors for 'not being realistic' and 'disruptive' to the industry.

The Disney CEO, whose $27 million-a-year contract was extended Wednesday through 2026, discussed the pending SAG-AFTRA strike with CNBC's David Faber Thursday on the network's Squawk Box.

'It's very disturbing to me,' the 72-year-old said, claiming that actors like Meryl Streep and Jennifer Lawrence are 'not being realistic' about the compensation benefits they are asking for.

Meanwhile, over $1.4 billion was raked in by Hollywood executives in 2021, up a startling 50 percent from 2018.

Topping the list of those who took home the biggest salaries was Warner Bros Discovery chief David Zaslav, who made over $498 million from 2018 to 2022.

His most lucrative year was in 2021, when he raked in a titanic $246 million. This windfall also came before his landmark merger between Warner Bros. and Discovery, in a deal worth in excess of $40 billion.

Zaslav's haul that year was only beaten by Ari Emanuel, the CEO and director of expansive media conglomerate Endeavor Group Holdings, at $308 million. 2021 was also the year Endeavor hosted a successful IPO, sending his compensation soaring.

Emanuel's salary topped $346 million over the same five-year timeframe of 2018 to 2022, through his company's ownership of Hollywood's largest talent agency alongside a slew of sports media companies including the UFC.

Data on the Hollywood rich list came from an LA Times analysis of research compiled by Equilar Inc. The research center also found Netflix CEO Reed Hastings has made $209 million since 2018, closely followed by embattled Disney chief Bob Iger at $195 million.

Iger was one of only two of the top 10 earners on the list who made more in 2018 than he did during the pandemic height in 2021, at $65 million and $45 million respectively.

Fox dynasty Rupert Murdoch and his son Lachlan each made $174 and $171 million respectively, who were beaten out by another Netflix executive Ted Serandos at $192 million.

SAG-AFTRA was demanding higher pay to counteract inflation, and guarantees for their future livelihoods.

In addition to salaries when they are actively working, actors earn payments called 'residuals' every time a film or show they starred in is aired on network or cable — which is particularly helpful when performers are between projects.

Under the rules of a strike, SAG-AFTRA members would not be able to film any movie or TV series, take part in any press or film premieres or promote anything at this month's San Diego Comic-Con.

It will affect Disney's Avatar and Lion King sequels, as well as shows that were scheduled to return to television in the fall, like The Simpsons.

SAG-AFTRA was demanding higher pay to counteract inflation, and guarantees for their future livelihoods.

In addition to salaries when they are actively working, actors earn payments called 'residuals' every time a film or show they starred in is aired on network or cable — which is particularly helpful when performers are between projects.