Devoted to show business and the entertainment industry

Here are another six reasons why Paramount ended the partnership they had with Tom Cruise:
 

 
1. Success of movies isn't based upon big stars

This is one of the least acknowledged or understood statistical realities in Hollywood. Go to any resource that lists the movies that anyone has been in, and fin the gross of the film. You'll find out that no matter who the actor or actress was - one movie will do great and the next one do terrible. This is a consistent pattern no matter who the actor has been. The success of a movie is directly connected to its quality and nothing else. Think of the first Star Wars as an example.

2. Pay for celebrities can't be sustained any longer

With the fragmenting of the entertainment industry, huge salaries won't be able to be sustained by studios any longer. There will occasional exceptions, but they will probably be produced as loss leaders rather than as potential big money-makers.

3. Competition from amateurs

With the online proliferation of amateur videos and entertainment, it has definitely become a legitimate competitor to Hollywood studios. There are a lot of people that enjoy that, more than spending time with the so-called professional offerings.

4. Studios are starting to hire executives that can run a business

Investors in film are starting to expect there to be adults running the business now. There has been a recent surge in hiring executives that know how to run a business rather than just burn through money.

5. The overall cost of making movies is going to plummet

The cost of making movies is going to start to drop as of now. Not because things are going to get cheaper, but because they will be forced to stay within smaller budget parameters. The majority of films will probably start to average between $20 million to $30 million to produce.

6. Some celebrity behavior is starting to backfire

While I said in a recent post that the behavior of Tom Cruise really had nothing to do with the agreement with him and Paramount ending; there is still some truth in celebrity behavior, in and of itself, causing problems in the industry.

It's not so much the outrageous behavior that is choreographed by agents and personal marketers, rather it's when the behavior crosses the line and they actually start to be controlled by their lifestyle. Recent stars attending all night parties and then coming to the set completely dysfunctional and unable to perform their job, is starting to be rejected by filmmakers.

The profit margins are too tight to allow this type of behavior to continue, and be the difference in some cases between being profitable or not. The entire industry is tightening up everywhere as they are starting to realize that they have to be able to make money to survive. The Tom Cruise/Paramount deal was done to send a clear message to everybody that this is going to be the way business is done from now on.

Hollywood has no choice. The entire landscape has changed for media and entertainment. This is one of a series of responses we'll be seeing for a long time to come.