Hollywood and the Great Depression
If you think that the economy is not affecting your favorite movie stars, think again. The economy has been hitting every industry hard, including the film industry. For example, Disney is not quite as ready to fork up Nicholas Cage's usually fee as they had for the first two installments of National Treasure. The economy is affecting Hollywood film production in so many ways, including which movies are being made.
Hollywood is cutting back. Screenwriters generally get about $500,000 for their work, but this fee is now around $300,000. Hollywood has seen these types of economic woes before. Back during the stock market crash of 1929 and the recession that followed it, the number of moviegoers dropped, and their intakes fell dramatically.
Hollywood, and many of the people that make their money off of it, often assume that the film industry is recession-proof. But, recent events have come to show that Americans are cutting back on their spending and cutting out the movies.
Back during the depression, movie prices were cut. Double features were offered, and the number of promotions and incentives rose. Hollywood has been studying these tactics to see if they'll fit into modern practices. But, there's still more to do. While actors such as Will Smith are still drawing their usual salaries, the tickets will still remain high.