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The motion picture indusrt and its effects


Although the figures are not out for 2003 there should be a decrease in attendance at theaters for the month April 2003 due to the outbreak of war in Iraq. .
             Returning to the cost side of the movie industry we see that a cause to the rising costs of movies can be blamed by the rising demands of higher wages by big Hollywood stars also contribute to the increase in total costs. More artists demanded up-front salary in 1990, compared with a humble advance and a cut of profits in previous years. Studios generally pay about 30% of films proceeds for principals and only when a big star would appear in the movie would they ask for up to 40% up-front. Movie Star salaries have increased in all recent years. Once an actor or actress attains superstar status, his or her salary keeps on rising regardless of the performance of the films they might star in. However this sometimes is beneficial for the studio because by having a star actor/actress in a movie it might ensure sales at the box office and if not then in the international market. .
             The main reason as to why theses actors are being paid so much is being blamed on Carolco Pictures. Many of the executives in the movie industry believe that in past years Carolco made big-budget films with international appeal at the time when big-budget movies was appealing to viewers and movie goers. Caraloco on the other hand points the finger on Disney and their production of sequel films. Because sequel films require the lead actor to continue in the series the actors can ask for higher wages. A perfect example of such sequel movies are "Rocky" and "Rambo" were actor Sylvester Stalone received $17 and $12 million for each sequel, respectively. As the fees increased affordability amongst smaller production companies decreased. .
             Although the industry has been booming over the years we see that in 1990 worldwide feature motion picture starts declined to 345 from 511 in 1988 and 578 pictures in 1987.


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