Big Names, Bigger Cuts: Media icons face pay reductions amid industry shifts
Mumbai: India’s news channels are a diverse and influential segment of the media landscape, offering content across a range of languages and platforms. News channels in India primarily include national and regional broadcasters, catering to audiences in Hindi, English, and various regional languages. The major national news channels, such as NDTV, Republic TV, India Today, and Times Now, Network18 cover multiple topics including politics, sports, entertainment, and global events. In addition, regional news channels serve audiences with local news, often in states’ official languages, providing relevant news to a wide variety of viewers.
The sector is highly competitive, with 24-hour news cycles and an emphasis on breaking news, leading to sensationalism, and debates on journalistic ethics. Despite facing challenges like declining advertising revenues, regulatory scrutiny, and the rise of digital news, TV news channels remain influential. Many channels focus on expanding digital platforms to adapt to shifting audience preferences, as younger viewers increasingly consume news online.
In India, where the streaming ecosystem is rapidly expanding, media companies may also face pressure to re-evaluate high talent costs and content production budgets. With increasing competition and the need to invest in technology and content, Indian media houses could soon mirror global strategies by prioritizing cost-cutting, optimizing talent compensation, and adapting to changing consumer behaviour in the streaming space.
As global media giants undergo significant shifts, including slashing star salaries due to the growing challenges of the streaming era, these trends are likely to influence the Indian market as well. The transition from traditional cable and broadcast to digital platforms is creating a need for cost-efficiency across the industry.
In India, the performance and reach of both English and regional, show distinct trends driven by linguistic diversity and varied audience preferences.
Here in India, there has been no dropping off an anchor or shutting a showdown. Recently two prominent anchors quit their existing broadcaster and joined rival broadcaster presumably for a huge salary hike as per sources.
The media industry’s ongoing cost-cutting efforts, driven by the challenges of the streaming era, broadcasters abroad are now focusing on one of its most valuable resources: star talent.
At Disney’s ABC, “Good Morning America” anchors George Stephanopoulos, Robin Roberts, and Michael Strahan—each earning approximately $25 million annually—are likely to face difficult negotiations to retain their hefty salaries, according to sources familiar with the situation.
At NBC, “Today” anchor Hoda Kotb announced her departure last month. If she had renewed her contract, she likely would have encountered a significant reduction to her $20 million salary. Her co-host, Savannah Guthrie, whose contract is another year, may face similar challenges, though Kotb’s exit may provide her some leverage. Puck first reported Kotb’s departure.
ESPN, meanwhile, recently had to let go of senior NBA writer Zach Lowe, following the earlier departure of other major figures like Robert Griffin III. Talent agents have been warned: don’t expect raises, and prepare for pay cuts.
“The era of the media icon—the singular, dominant TV personality—is ending,” said Frank Sesno, a professor at George Washington University and former CNN Washington bureau chief.
The vulnerability of top talent stems from various factors. Media companies are seeing declining revenues from their traditional cable and broadcast operations, and their streaming ventures are not offsetting the losses. At the same time, many networks are investing heavily in sports rights to stay competitive. Disney and NBCUniversal, for instance, are involved in a massive new NBA deal set to take effect in 2025.
The squeeze on talent costs extends beyond news and sports. Entertainment divisions are cutting budgets, reducing episode counts, and trimming cast salaries. Long-term production deals between studios and talent are becoming less common, and even high-profile producers now face pay cuts in new agreements.
Late-night TV is also affected. NBC’s “Tonight Show with Jimmy Fallon” recently joined ABC’s “Jimmy Kimmel Live” and CBS’s “Late Show with Stephen Colbert” in not airing new episodes on Fridays. NBC has even considered cancelling Seth Meyers’ late-night show, although it survived with cuts, such as eliminating the house band.
We are undergoing a major shift in how television is delivered and consumed, and the industry is facing significant challenges in maintaining and growing its revenues,” said Joe Peyronnin, a former TV news executive and current professor at New York University
MSNBC is negotiating a new deal with Rachel Maddow, whose $30 million-per-year contract is up after the 2024 election. Despite only hosting her prime-time show one night a week, she is still considered a major draw. However, insiders say the network will push for a lower salary in her next contract.
CBS News, on the other hand, has been moving away from the star-driven model. Norah O’Donnell is being replaced on “CBS Evening News” by a trio of anchors, and former anchor Jeff Glor was recently let go as part of the company’s cost-cutting efforts.
“The days of $20 million stars are fading fast,” said one agent who represents top talent at multiple networks.
Stephanopoulos has already begun negotiations with Disney for his “Good Morning America” role. While insiders expect a tough process, he has an advantage of his consistent presence on the show, unlike Roberts and Strahan, who have lighter schedules. However, Roberts is seen as the show’s face and produces prime-time specials, while Strahan is considered the future of the franchise. All three still have more than a year on their contracts.
While some speculate that ABC News might cut one of the anchors to save money, insiders dismiss that scenario. Despite the shifts, high salaries for select stars aren’t going away.
While it’s not all doom and gloom for Indian broadcasters and anchors, the real question is how long the revenue decline will continue before a reality check sets in.