The US television landscape could be about to change forever with the contracts of some of the country’s biggest stars up for renewal as major broadcasters look to cut spending costs.
It may mean that household names on the country’s major television networks, from morning shows to late-night talk shows, will have to take a drastic cut in their multimillion-dollar salaries or perhaps leave their networks altogether.
You could also see less familiar names quickly rising to the top as network bosses look to cull their talent rosters, but for a fraction of the current price.
Part of the problem media companies face in such a dilemma comes from declining advertising revenue from traditional cable and broadcast television operations.
Similarly, their respective streaming businesses simply aren’t bringing in dollars to make up the shortfall.
Dropping one of the anchors would instantly save Disney tens of millions, but the ABC News trio has been a winning formula for years and GMA won the ratings war. Pictured, from left, Michael Strahan, Robin Roberts and George Stephanopoulos.
Both Roberts, 63, and Strahan, 52, still have more than a year left on their current contracts.
“We’ve had a tremendous restructuring in the way television is delivered and received, and the business is going through a huge struggle trying to retain and grow revenue,” said Joe Peyronnin, a former television news executive who now teaches journalism. at New York University. The University told Wall Street Journal.
No network appears to be immune to cost-cutting, including the House of Mouse, Disney, now worth $172 billion and owner of ABC.
The hosts of his morning show, Good Morning America, have deals worth $25 million each.
Experts believe that the three, George Stephanopoulos, Robin Roberts and Michael Strahan, will have a difficult time securing such a high salary package when contract negotiations come around.
Stephanopoulos has already begun negotiations with Disney for a new deal, but he likely won’t be able to avoid a pay cut.
Stephanopoulos has already begun negotiations with Disney for a new deal, but he likely won’t be able to avoid a pay cut.
Stephanopoulos, 63, is a workhorse and has a more rigorous schedule than his hosts, although Roberts is still seen as the face of the show, having been on GMA since 2005.
Both Roberts, 63, and Strahan, 52, still have more than a year left on their current contracts.
Dropping one of the anchors would instantly save Disney tens of millions of dollars, but the ABC News trio has been a winning formula for years and GMA won the ratings war.
“The days of the $20 million players will be few and far between,” one talent agent told WSJ.com warning that talent is essentially on notice and should prepare to remain at the same salary or expect a pay cut.
On the Peacock network, coverage of this summer’s Olympics finally saw Today move into first place in the third quarter of the year.
NBC Today host Hoda Kotb, 60, announced last month that she will be leaving Today early next year.
NBC Today host Hoda Kotb, 60, announced last month that she will be leaving Today early next year. Co-host Savannah Guthrie, 52, left, still has more than a year left on contract
If Hoda Kotb, left, had decided to stay at NBC, it would have been highly unlikely that she would have landed another $20 million-a-year contract, those familiar with such negotiations have suggested. Co-host Savannah Guthrie, 52, appears in the center with Jenna Bush Hager, 42.
Had he decided to stay at NBC, it would have been highly unlikely that he would have landed another $20 million-a-year contract, those familiar with such negotiations have suggested.
Co-host Savannah Guthrie, 52, still has more than a year left on her contract but may face a similar budget adjustment, although Kotb’s departure will give her some leverage when it comes to discussing her next pay deal.
Still, his $20 million salary is well below that of Matt Lauer, who earned a staggering $25 million before being ousted over a sexual harassment scandal in 2017.
The economic realities of broadcast media are putting pressure on the amount of payments companies like NBC can make by giving up contracts with their experienced talent.
The Today Show and Good Morning America averaged about 5 million viewers about a decade ago, but now their audiences have dropped by half.
And as its viewers age, its influence on younger audiences is almost non-existent: around 600,000 viewers in the 25-54 age range.
Even Skydance-Paramount-owned CBS is not immune and has already begun to shy away from star talent in recent years.
CBS Evening News anchor Norah O’Donnell, 50, will soon be replaced by a likely trio of anchors, some of whom are big names, but all of whom are less financially demanding.
During O’Donnell’s five years at the helm, ratings have plummeted about 25 percent, putting the newscast firmly behind rivals ABC and NBC.
CBS Evening News anchor Norah O’Donnell, 50, will soon be replaced by a likely trio of anchors, some of whom are big names, but all of whom are less financially demanding.
Former CBS Evening News anchor Jeff Glor, 49, was recently fired after being demoted to anchoring just once a week on CBS Saturday Morning.
The Eye Network has already embarked on its cost-cutting process with former CBS Evening News anchor Jeff Glor, 49, who had essentially been demoted to hosting only the Saturday edition of the CBS morning show, but still with a considerable salary, he was recently Let it go.
CBS News reporter John Dickerson and WCBS anchor Maurice DuBois are set to take over the Evening News.
The changes come as CBS parent company Paramount is about to lay off 2,000 employees to cut $500 million from the budget.
“The day of the media icon, the prominent independent and central television personality, is coming to an end,” said Frank Sesno, professor of media and public affairs at GWU and former CNN DC bureau chief.
MSNBC’s Rachel Maddow may be among the first big names to review her pay deal.
Maddow, 51, hosts the network’s most popular show and currently has a $30 million-a-year contract, but it’s coming to an end after the election.
NBC’s Tonight Show with Jimmy Fallon and ABC’s Jimmy Kimmel Live run four days a week.
CBS’ Late Show with Stephen Colbert no longer produces new episodes on Fridays
While Maddow used to host a daily show, as of May 2022 her show now only airs once a week, on Mondays, meaning she’s raking in a whopping $600,000 for each primetime episode.
At the other end of the calendar, costs are already being covered at the three major networks and late-night shows are no longer producing new episodes on Fridays.
NBC’s Tonight Show with Jimmy Fallon, CBS’ Late Show with Stephen Colbert and ABC’s Jimmy Kimmel Live run four days a week.
NBC had been mulling over the possibility of eliminating Seth Meyers’ late-night show entirely, but managed to hang on and only the band was shown the door.
Following the departure of James Corden from CBS, the Late Late Show was not renewed with a new host after 28 years of operation.
The phasing out of veteran talent will likely accelerate when it comes time to renew and renegotiate contracts.
