Tom Cruise and other Paramount stars getting cut off from millions of dollars?

Tom Cruise and other stars are in discussions with Paramount about profit-sharing rates from Epix.

by Nathan Kamal | published

Tom Cruise and several other major film stars suspect that they are not getting the expected paydays when it comes to their work with Paramount. According to a report in Good luckInsider talks are taking place between A-list stars like Tom Cruise and Paramount Pictures (or at least, their respective legal teams) over the profit-sharing amount paid to them. In particular, Tom Cruise and other Paramount-affiliated stars are concerned that they are being paid a rate of profit through the cable channel Epix and that its agreements with the studio are much lower than what they have.

The Tom Cruise Paramount profit-sharing controversy is complex and a concern among many companies that share parent corporations at some point, but we’ll try to break it down as simply as possible. Basically, the biggest stars (and producers, directors, and other less visible Hollywood figures) often negotiate profit-sharing as part of their salary for a film, including a video-on-demand rental. and may include post-theatrical revenue sources such as purchases and license fees from third parties who wish to show the film (for example, channels such as Epix or HBO). Since things are never super straight when it comes to money or show business, rates paid to studios from a third party are negotiated not by the individual film, but as an ongoing agreed amount.

It all becomes relevant to his relationship with Tom Cruise, Paramount Pictures, and its In that previous year the relationship with Epix, the studio and cable channel (which Paramount used jointly with Lions Gate Entertainment Corp and Metro-Goldwyn-Mayer) renegotiated their licensing agreement, possibly including payout rates. . It seems that the studio agreed to a significantly lower rate than Tom Cruise and his peers would have preferred Paramount, and felt they were losing revenue because of it. For its part, Paramount Pictures claims it got “market” rates for its new deal with Epix.

tom cruise paramount

While all of this is dry legal, in practice, it potentially costs tens of millions of dollars for the players involved. For example, if the recent Tom Cruise blockbuster Top Gun: Maverick Having grossed nearly $1.5 billion (and counting) in theaters, getting streaming rights for cable channels becomes very desirable. If Paramount has contracted Epix to license streaming rights that are not proportional to its level of popularity, a lawyer could argue that the studio is not adequately compensating the people behind it.

No lawsuits have yet been filed in this developing case, but undoubtedly no studio would want to get into a drawn-out legal argument with some of its biggest stars. In this case, Tom Cruise, Sandra Bullock and Jim Carrey all had big movies produced by Paramount in 2022 (the Lost City And sonic the hedgehog 2, for the latter two), resulting in a potentially bizarre amount of play in the game. Hopefully, everyone will manage to deal with this politely and everyone will get rich.

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