Can somebody please explain to me the economics of why Hollywood actors and actresses are so over payed?

Question

It's not like they have the fate of an entire corporation and the jobs of hundreds of people in their hands like CEO's, or the liability risk of Neuro-Surgeons. Their job description is just to memorize lines and pretend they're somebody else, that's it. Then why are they sooooo over payed? There is something clearly wrong with the economics of it all.

Answer 1

Well what actors are you talking about? In truth with thousands of actors in play the big pay goes to a few stars and the rest get scraps. Yes an actor might make a good wage for the four year run of a series but when that series is done with no one will give them a job for years if not decades.

But yes there is the illussion that many actors are over payed especially when what they do looks effortless. Much like a star football team it only looks effortless. Look at the Colts with and without Peyton Manning and you will see the difference between Halloween 1 and Halloween Fifteen....

But as said the issue is way more complex and if the executives had their way all the money brought in by movies would go into their pockets. The economics of Hollywood are easilly misunderstood. Example A) actor X gets Five Million up Front plus 10 % of the Take of a movie that made for 200 Hundred Million and the movie makes Five Hundred Million worldwide, and Example B) actor Z gets $500,000 and 25% of the gross of a movie made for Fifteen Million which goes on the make Five Hundred Million, OH and Actor X walked through the role said his lines and went home at the end of the day, Actor Z poured heart & soul into his role, lived breathed slept his role wrecking personal relationships along the way, but really loved what was accomplished.... So which movies makes sence financially?

And who says a CEO is worth any more for driving a company into financial ruin??

Peace....................................... o o o p p o o o p p o o o

Answer 2

The vast majority of actors barely get enough to scrape by. That's why they have to take other jobs. What you're talking about are the tiny fraction who can command such high salaries. However, they haven't always been able to get that much money per movie and they won't always be able to. This is an industry where you're only as good as your last hit movie.

Answer 3

How much did you have to pay to go see the last movie you saw...................... it all adds up.................

Answer 4

b/c hollywood has too much $