America’s television landscape could be about to change for good with the contracts of some of the nation’s biggest stars about to come up for renewal at a time major broadcasters are looking to slash spending costs.
This could force familiar household names on the main television networks – from morning news to late night talk shows – to either have to take a drastic cut in their multi-million dollar pay packets or perhaps leave their networks altogether.
It could also see less familiar names quickly rising to the top as network bosses look to curate their talent rosters, but for a fraction of the current price.
Part of the problem media companies are finding themselves in such a quandary comes from diminishing returns from advertising revenue from legacy cable and traditional broadcast TV operations.
Similarly their respective streaming businesses are simply not bringing in the dollars to make up for the shortfall.
Ditching one of the anchors would instantly save Disney tens of millions but the ABC News trio has been a winning formula for years with GMA winning 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 to run on their current contracts
‘We have had a tremendous shake-up in how TV is delivered and received, and the business is going through a major struggle trying to retain and grow revenues,’ said Joe Peyronnin, a former television news executive who now teaches journalism at New York University told the Wall Street Journal.
No network appears to be immune from the cost-cutting including those at the House of Mouse, Disney, currently worth $172billion, which owns ABC.
The anchors for its morning show, Good Morning America, each have deals worth $25 million.
Insiders believe all three, George Stephanopoulos, Robin Roberts and Michael Strahan will struggle to command such a hefty pay packet by the time contract negotiations come around.
Stephanopoulos has already begun his negotiations with Disney for a new deal but it is likely he may not be able to avoid a pay cut
Stephanopoulos has already begun his negotiations with Disney for a new deal but it is likely he may not be able to avoid a pay cut.
Stephanopoulos, 63, is a workhorse and has a more rigorous schedule than that of his hosts, although Roberts is still seen as the face of the show having been with GMA since 2005.
Both Roberts, 63, and Strahan, 52, still have more than a year left to run on their current contracts.
Ditching 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 with GMA winning the ratings war.
‘The days of $20 million players will be few and far between,’ said one talent agent to WSJ.com warning how talent are essentially on notice and must prepare themselves to either remain on the same salary or expect a pay cut.
Over at the Peacock network, this summer’s Olympics coverage finally saw Today move into the first place in the third quarter of the year.
NBC Today anchor Hoda Kotb, 60, announced last month she is stepping down from Today early next year.
NBC Today anchor Hoda Kotb, 60, announced last month she is stepping down from Today early next year. Co-host Savannah Guthrie, 52, left, still has more than a year to run on her contract
Had Hoda Kotb, left, decided to stay at NBC, she would have been very unlikely have secured another $20 million-a-year contract, those familiar with such negotiations have suggested. Co-host Savannah Guthrie, 52, is pictured center alongside Jenna Bush Hager, 42,
Had she decided to stay at NBC, she would have been very unlikely have secured another $20 million-a-year contract, those familiar with such negotiations have suggested.
Co-host Savannah Guthrie, 52, still has more than a year to run on her contract but she may face similar tightening of purse strings, although Kotb’s departure will give her some leverage when it comes to thrashing out her next pay deal.
Still, her $20million salary falls well short of Matt Lauer who was making a staggering $25million – before he was ousted over a sexual harassment scandal in 2017.
The economic realities of broadcast media are putting a strain on the amount of payouts companies like NBC can make when resigning contracts with their experienced talent.
The Today Show and Good Morning America were averaging around 5 million viewers around a decade ago but now their audiences have been cut in half.
And as their viewers age, their hold on younger audiences is almost non-existent – with around 600,000 viewers in the 25 to 54 age range.
Even CBS owned by Skydance-Paramount is not immune and has already begun to shift away from star talent in recent years.
CBS Evening News anchor Norah O’Donnell, 50, will soon to be replaced by a likely trio of anchors – few of whom are big names, but all of whom are less economically demanding.
During O’Donnell’s five years at the helm, the ratings have plunged roughly 25 percent, placing the newscast firmly behind rivals at ABC and NBC.
CBS Evening News anchor Norah O’Donnell, 50, will soon to be replaced by a likely trio of anchors – few of whom are big names, but all of whom are less economically demanding
Former CBS Evening News anchor Jeff Glor, 49, was recently let go having been demoted to presenting only once a week on CBS Saturday Morning
The Eye Network has already embarked on its course of cost-cutting with former CBS Evening News anchor Jeff Glor, 49, who had essentially been demoted to anchoring only the Saturday edition of the CBS morning show, but still on a hefty salary, was recently let go.
CBS News journalist John Dickerson and WCBS anchorman Maurice DuBois are earmarked to take over the Evening News.
The changes come as CBS parent Paramount is in the throes of laying off 2,000 staffers in order to shave $500million from the budget.
‘The day of the media icon, the standout, stand-alone center-stage TV personality, is coming to end,’ said Frank Sesno, a professor of media and public affairs at GWU and former CNN DC bureau chief.
MSNBC’s Rachel Maddow may be among the first of the major names to have their pay deal reviewed.
Maddow, 51, hosts the most popular show on the network and is currently on a $30 million-a-year contract – but it comes to an end after the election.
NBC’s Tonight Show with Jimmy Fallon and ABC’s Jimmy Kimmel Live are all working four day weeks
CBS’s Late Show with Stephen Colbert is no longer producing new episodes on Fridays
While Maddow used to host a daily show, since May 2022 her show now only airs once a week, on Mondays, meaning she’s pulling in a whopping $600,000 for each prime-time episode.
At the other end of the schedule costs are already being made across all three mainstream networks with the late night shows no longer producing new episodes on Fridays.
NBC’s Tonight Show with Jimmy Fallon, CBS’s Late Show with Stephen Colbert and ABC’s Jimmy Kimmel Live are all working four day weeks.
NBC had been pondering over whether to scrap Seth Meyers’s late-night show entirely but it has managed to cling on with only the band shown the door.
Following James Corden’s departure from CBS, the Late Late Show was not renewed with a new host following a 28 year run.
The phasing out of veteran talent will most likely accelerate when it comes time for contracts to be renewed and renegotiated.
