Who pays actors for movies?

Who pays actors for movies?

Unpacking the financial structure behind film acting salaries

(By Jim Webb)

(Photo: Karolina Grabowski | Pexels)

The Role of Film Studios in Actor Compensation

When it comes to paying actors in movies, the responsibility typically falls on the film studios. These studios—ranging from industry giants like Warner Bros., Universal, and Disney to independent production companies—allocate a budget for the film, which includes actor salaries.

Studios negotiate contracts with talent agencies or managers representing actors. The pay varies drastically depending on the actor’s reputation, the film’s budget, and the importance of the role. For example, Robert Downey Jr. reportedly earned $20 million upfront for Avengers: Endgame, a figure made possible by Disney’s deep pockets and the film’s global box office potential.

Smaller studios, on the other hand, might pay scale (the minimum allowed by unions such as SAG-AFTRA), which could be around $1,000 per day or less depending on the role and distribution format.

In the world of independent cinema, actors are often paid much less—or sometimes not at all—especially if the project is passion-driven or on a shoestring budget. In such cases, actors may agree to work for deferred payment, which means they get paid only if the film makes a profit.

For example, Jon Favreau’s 2014 film Chef was a passion project funded by smaller investors. While some actors received modest pay, others, including big names like Scarlett Johansson and Robert Downey Jr., reportedly worked for reduced rates or cameo fees because of personal connections or interest in the project.

This model allows more creative freedom but comes with financial risks. If the film flops or never gets released, the actors may never see a paycheck.

Producers—particularly executive producers—often play a key role in securing financing for actor salaries. These funds might come from a combination of studio backing, private investors, foreign pre-sales, or even government film grants.

Let’s take James Cameron’s Titanic as an example. The film was originally financed by 20th Century Fox, but when the budget ballooned, Paramount Pictures stepped in as a co-financier. Both studios contributed to Leonardo DiCaprio and Kate Winslet’s pay.

Sometimes, production companies formed by actors themselves foot the bill. Will Smith’s Overbrook Entertainment or Reese Witherspoon’s Hello Sunshine often cover the cost of actor salaries for films they produce independently and later sell to distributors like Netflix or Amazon Studios.

In the streaming era, platforms like Netflix, Amazon Prime, and Apple TV+ are changing the payment model. These companies often pay actors upfront with little to no backend participation (a share in profits).

For example, Ryan Reynolds earned $27 million for his role in Netflix’s Red Notice, a figure that reflects Netflix’s strategy of offering big, flat payments to secure star talent and bypass traditional box office-based performance deals.

Unlike theatrical releases where actors might earn bonuses based on ticket sales, streaming contracts are more straightforward: a high salary for exclusive rights, no matter how the film performs in terms of viewership.

Top-tier actors often negotiate backend deals, which allow them to earn a percentage of a film’s profits in addition to a base salary.

A classic example is Tom Cruise in Mission: Impossible – Fallout. While his base salary was substantial, he also earned a percentage of the film’s box office gross. As a result, his total compensation reportedly exceeded $70 million.

Similarly, Jack Nicholson accepted a lower upfront fee for Batman (1989) in exchange for a percentage of the merchandise and ticket sales—a savvy move that earned him over $50 million.

These deals are usually reserved for established actors with proven box office draw, and they carry both risk and reward depending on the film’s success.

The Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) plays a pivotal role in regulating how actors are paid. They set minimum pay rates, provide healthcare, and ensure actors are treated fairly.

For instance, a SAG actor working on a low-budget film under $250,000 might earn around $200 per day, while someone on a high-budget studio production could earn thousands per day, depending on their role and contract.

Union rules also guarantee actors receive residuals—ongoing payments when a film or show is rerun, sold, or streamed. That’s why some older actors still receive checks when their work is broadcast on cable or platforms like Hulu.

In countries like India, South Korea, or France, the actor payment structure can differ. While Bollywood stars such as Shah Rukh Khan or Deepika Padukone may earn millions per film, these payments often come directly from producers or local distributors.

Additionally, many international actors do not receive residuals unless working under contracts that follow U.S. standards. European and Asian film industries often follow a flat-fee structure, though high-profile actors still command large fees.

Parasite director Bong Joon-ho’s collaboration with Song Kang-ho on multiple films shows that Korean stars can be paid both upfront and receive bonuses based on film performance, though backend deals are rarer outside Hollywood.

Believe it or not, even big-name actors sometimes work for free or reduced pay under certain circumstances. These may include:

A passion project with artistic value

A favor to a friend or director

A chance to break into a new genre

For example, Brad Pitt appeared in Deadpool 2 as an uncredited cameo for scale pay ($958) just because he liked the script and was friends with Ryan Reynolds and director David Leitch.

Similarly, Jonah Hill took home only $60,000 for The Wolf of Wall Street—a fraction of his usual rate—because he wanted to work with Martin Scorsese.

Yes, background actors—often called extras—are paid, though the rates are typically modest. Union extras under SAG-AFTRA contracts might earn around $187 per day, depending on the shoot.

In blockbuster films with long days and elaborate scenes, extras can earn more through overtime or hazard pay. In The Lord of the Rings trilogy, hundreds of extras were used for battle scenes and received both daily pay and stunt bonuses when needed.

Some non-union projects offer little more than meals and screen time, but most legitimate productions—especially those with distribution deals—compensate extras fairly.

In summary, actors are paid by the entities that fund film production—mainly studios, producers, and distributors. While lead actors may command millions, others work for union minimums, deferred payment, or even volunteer their time for creative fulfillment.

The method of payment is influenced by many factors: the film’s budget, platform (theatrical vs. streaming), union guidelines, and the actor’s status in the industry.

The wide range in actor pay—from $100-a-day extras to $70 million profit-sharers—highlights both the glamour and the grind of the film industry.

Acting Magazine Newsletters

Never miss out on the best from Acting Magazine.

Sign me up for the newsletter!