America’s most popular TV stars are put on notice as industry is warned of major shakeup

The American television landscape could be about to change forever as the contracts of some of the country’s biggest stars are set to be renewed, at a time when major broadcasters are looking to cut spending.

It could mean that household names on the nation’s major television networks, from morning shows to late night talk shows, will either have to take a drastic cut to their multi-million dollar pay packages or perhaps leave their networks altogether.

It could also be that lesser-known names quickly rise to the top as network bosses look to build their talent rosters, but at a fraction of the current price.

Part of the problem that media companies find themselves in such a dilemma stems from the diminishing returns on advertising revenue from traditional cable and traditional television businesses.

Likewise, their respective streaming companies simply aren’t bringing in the dollars to make up for the shortfall.

“We’ve had a huge shake-up in the way TV is delivered and received, and the company is going through a major struggle as it tries to maintain and grow revenues,” said Joe Peyronnin, a former television news executive who now teaches journalism in New York. University told the Wall Street Journal.

No network appears to be immune from the cost cuts, including those of House of Mouse, Disney, which is currently worth $172 billion and owns ABC.

The morning show hosts Good Morning America each have deals worth $25 million.

Insiders believe that all three, George Stephanopoulos, Robin Roberts and Michael Strahan, will struggle to secure such a hefty pay package by the time contract negotiations take place.

Stephanopoulos has already started his negotiations with Disney on a new deal, but it is likely that he will not be able to avoid a pay cut.

Stephanopoulos, 63, is a workhorse and has a stricter schedule than that of his hosts, although Roberts is still seen as the face of the show as he has been with GMA since 2005.

Both Roberts, 63, and Strahan, 52, have just over a year left on their current contracts.

Getting rid of one of the anchors would immediately 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,” one talent agent countered WSJ.com warning how talent is essentially on notice and should prepare to either continue to maintain the same salary or expect a pay cut.

At the Peacock Network, coverage of this summer’s Olympics ultimately propelled Today to the top spot in the third quarter of the year.

NBC Today host Hoda Kotb, 60, announced last month that she will be stepping down from Today early next year.

Had she decided to stay at NBC, it would have been highly unlikely that she would have landed another $20 million-a-year contract, those familiar with such negotiations have suggested.

Co-host Savannah Guthrie, 52, still has more than a year left on her contract, but she could face a similar tightening of the purse strings, although Kotb’s departure will give her some leverage when it comes to finishing of her next pay deal.

Still, her $20 million salary still lags far behind that of Matt Lauer, who earned a whopping $25 million — before he was ousted in 2017 over a sexual harassment scandal.

The economic realities of broadcast media are putting pressure on the number of payouts companies like NBC can make when terminating contracts with their veteran talent.

The Today Show and Good Morning America averaged about 5 million viewers about a decade ago, but now their audiences have halved.

And as their viewership ages, their hold on the younger audience is virtually non-existent – ​​with around 600,000 viewers in the 25 to 54 age range.

Even Skydance-Paramount-owned CBS is not immune and has already begun to move away from star talent in recent years.

Norah O’Donnell, 50-year-old anchor of the CBS Evening News, will soon 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, ratings have fallen by about 25 percent, leaving the newscast firmly behind rivals ABC and NBC.

The Eye Network has already embarked on a cost-cutting effort with former CBS Evening News anchor Jeff Glor, 49, who was essentially relegated to hosting only the Saturday edition of the CBS morning show but still earned a hefty salary. let go.

CBS News journalist John Dickerson and WCBS anchor Maurice DuBois are slated to take over the Evening News.

The changes come as CBS parent company Paramount is laying off 2,000 employees to cut $500 million from its budget.

“The day of the media icon, the standout, standalone TV personality, is coming to an end,” said Frank Sesno, professor of media and public affairs at GWU and former CNN DC bureau chief.

MSNBC’s Rachel Maddow may be one of the first big names to have their pay deal reviewed.

Maddow, 51, hosts the most popular show on the network and currently has a $30 million-a-year contract, but that will end after the election.

While Maddow used to host a daily show, her show has only aired once a week since May 2022, on Mondays, meaning she rakes in a whopping $600,000 for each primetime episode.

At the other end of the schedule, costs are already being incurred for all three mainstream networks, with the late night shows no longer producing new episodes on Fridays.

NBC’s Tonight Show Starring Jimmy Fallon, CBS’s Late Show Starring Stephen Colbert and ABC’s Jimmy Kimmel Live all operate four-day weeks.

NBC had debated whether to scrap Seth Meyers’ late night show altogether, but it has managed to hold on while only showing the band the door.

After James Corden’s departure from CBS, the Late Late Show was not renewed with a new host after a 28-year run.

The phasing out of experienced talent will most likely accelerate when it comes time to renew and renegotiate contracts.