Chapter 467: Chapter 467: Public Relations Disaster
Almost without any warning, during the period leading up to the Oscars, the larger Hollywood companies reached an unspoken agreement to drastically cut star salaries. Stanton Studio was among them. Due to the studio's involvement in numerous projects, Murphy temporarily put aside his screenwriting work and frequently attended meetings with the Producers Guild.
In this aspect, Hollywood's capital side undeniably shared common interests.
Much like how CAA agents transitioned from Michael Ovitz's aggressive approach to a relatively softer stance, all major Hollywood studios were no longer just production or distribution companies but parts of media conglomerates, responsible for providing crucial 'content' for the entire group.
Any commercial company would gladly reduce the share of others to increase its own profits.
Therefore, Paramount Pictures, Viacom Group, and Sumner Redstone first targeted Tom Cruise, making him the most unfortunate one for the moment.
Many media outlets reported during last year's economic crisis that due to plummeting stock prices, Sumner Redstone might no longer be a billionaire. However, as the chairman of Viacom's board and its largest individual shareholder, he had no trouble mobilizing the media and rallying some allies against Tom Cruise.
Other companies had the same needs in this regard and naturally supported Paramount Pictures.
Murphy didn't know if Sumner Redstone still remembered him. He couldn't intervene in such matters and observed the situation passively.
Undeniably, superstars were and always would be part of Hollywood's top tier, but securing a $2+2 contract as easily as before would become very difficult, except for sequels with established images or proving their market appeal in several consecutive blockbuster hits.
During the Producers Guild's public suppression of star salaries, Murphy never saw any government intervention, unlike the high-profile actor salary incidents reported across the Pacific. There was not even a peep from associations, guilds, or unions; it was entirely a commercial action driven by industry power dynamics.
Ultimately, the deciding factors were the market and the audience. In a mature and healthy industry structure, stars become stars entirely due to their market appeal.
However, audiences are forgetful, especially those who enjoy summer blockbusters. They prioritize visual effects and elements that cater to their tastes, placing stars further down the list.
In a way, aside from die-hard fans, most audiences are a savvy and ruthless group who vote with their feet.
Paramount Pictures and Sumner Redstone dared to target a superstar like Tom Cruise first, rather than other stars, partly because of the audience.
When "Mission: Impossible III" was released, Cruise's erratic behavior alienated many female viewers. In Hollywood parlance, that translates to money, and money is Hollywood's guiding principle: no matter who you are, if you cost me money, you're out.
Whether it's the power of stars, directors, or others, the film industry ultimately operates in a commercial jungle. The value of each party is determined by their commercial strength. When a star overestimates their worth or ignores changes in their appeal, no longer delivering profits for their employer, and still demands exorbitant fees without negotiation, they will inevitably be discarded.
Another reason is that Tom Cruise indeed left Paramount Pictures with enough widely accepted justifications.
Before the release of "Mission: Impossible III," Cruise's antics to woo Katie Holmes for Scientology included jumping on Oprah Winfrey's show. To defend Scientology, he criticized Brooke Shields for using medication to treat postpartum depression and clashed with Matt Lauer, significantly damaging his popularity. These incidents gave Viacom's Sumner Redstone ample ammunition.
On the surface, Redstone's stated reason for dropping Cruise was that "his recent conduct was unacceptable to Paramount Pictures," but insiders like Murphy knew it was ultimately a battle over interests.
For over a decade, according to their agreement, Paramount paid Tom Cruise's Cruise/Wagner Productions an annual fee of $10 million for the first option on all projects developed by his company.
This $10 million was unrelated to salaries or investments; it was a fixed annual fee Paramount had to pay.
In addition, Cruise insisted on traditional salaries and a share of box office and DVD sales for films he starred in.
Although "Mission: Impossible III" wasn't a box office flop, its earnings significantly dropped compared to its predecessor's $545 million gross.
The film's $393 million revenue wasn't small, but with a production and marketing cost of $250 million, and theater cuts, Paramount Pictures made a substantial loss on box office earnings alone.
If it weren't for merchandise and downstream revenues, Paramount would essentially be working for Tom Cruise.
Moreover, Cruise took 25% of the DVD sales revenue.
According to precise information Murphy received from Kara Faith, Paramount Pictures made a mere $800,000 in profit from "Mission: Impossible III," while Tom Cruise pocketed nearly $100 million.
To Murphy, this was an intolerable situation.
Thus, to cut costs, Paramount insisted on reducing the annual fee to Cruise/Wagner Productions from $10 million to $1 million, which Cruise refused, leading to a breakdown in negotiations.
Had this happened ten years earlier, any studio would face a lengthy lawsuit, as Redstone not only deprived Cruise of his income but also publicly insulted his character.
Redstone was a businessman, a shrewd one. Every decision he made was calculated, never accidental.
Typically, news of a star's firing would first appear in industry publications like Variety, phrased diplomatically and regretfully, and disclosed by the studio's CEO.
Both sides would express good intentions: "We couldn't reach a satisfactory agreement with Tom Cruise, but we wish him well," and Cruise would respond similarly.
But this time, Redstone himself took to the front page of The Wall Street Journal, directly criticizing Cruise's mental state and misconduct, just when Cruise was supposedly trying to raise funds on Wall Street.
Despite the underlying intrigue, this delighted other studios struggling with star salaries.
Cruise's bizarre behavior was undeniably a PR disaster. Paramount believed that if not for his antics, "Mission: Impossible III" could have made an additional $100-$150 million.
For Redstone, who was already embarrassed about no longer being a billionaire, this wasn't a trivial sum.
Therefore, he made a bold move, publicly distancing himself from Cruise to avoid further damaging his interests.
Later, at the Oscars ceremony, which Murphy did not attend, Redstone once again publicly criticized Cruise.
"He does nothing on set and takes $10 million, so I fired him. All studios understand and support me."
As he said, Hollywood's producers almost unanimously supported Paramount Pictures.
Murphy watched this year's Oscars at home. "Inglourious Basterds" received eight nominations, but only Christoph Waltz won the Best Supporting Actor award.
In his interview, Waltz prominently mentioned Murphy.
"One day, my agent in Los Angeles notified me of a very ordinary audition. What was extraordinary was that I received the entire script beforehand. After reading it, I felt the character of Hans Landa was incredibly vivid. Meeting Murphy Stanton was a historic encounter for me, changing everything."
Facing numerous media reporters, Waltz continued, "I am enamored with Murphy's films. Truly. He is a genius, and I am willing to dedicate myself wholly and unconditionally to his movies."
Finally, he added, "Murphy is a pure director. Every fiber of his being serves his directorial role. He never dictates how actors should perform but allows them to understand and interpret their roles freely. Perhaps it is this freedom that unleashed my lifetime of accumulated acting energy..."
Of course, while praising Murphy, the savvy Waltz didn't forget to boost his own image, taking advantage of the opportunity.
During the Oscars, when Waltz raised the statuette, he specifically thanked Murphy—calling him a fearless trailblazer who led them to victory with his unique approach. "This is your gift to me, and I can't express my gratitude enough!"
Not just for the accolades, Waltz had already accepted Murphy's invitation to star in his next film.
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