Mumbai: A-list actors, known for their box office appeal, are stepping back and adopting a more realistic approach by lowering their fees on a project-by-project basis to help get films off the ground in today's challenging funding environment and amid a string of high-profile failures, according to several film producers.

Several top names have cut their rates by up to 30% compared to what they charged during the pandemic, a sign of the times and a necessary move to keep the industry moving forward.

Generally speaking, an A-list actor's remuneration forms more than 50% of the cost of production of a film.

Girish Johar, a producer known for Hindi films like Jazbaa (2015), Rustom (2016), and Tadka (2022), said, "Today, there is a clear focus on the cost of films. Many A-list actors have become more realistic and are reducing their fees by up to 30% on a project-to-project basis. This way, at least films are getting started."

Some A-list actors are now also agreeing to take 20-30% of their fees upfront and the remaining 60-70% from the film's profits, say industry experts.

The failure of top films like Bade Miyan Chote Miyan, Maidaan and Fighter has also forced production houses to look closely at costs and their film slates.

"The number of films each production house is making has decreased. The mantra now is to create fewer, bigger, and better films," said the founder and group CEO of a leading talent management agency.

"Increasingly, the industry is following skin-in-the-game strategy to kick-start films. A-list actors who have reduced their fees take a basic fee and secure a large part of remuneration from the profits of a film."

Producers noted that this approach, where A-list actors take a smaller upfront fee, eases the burden of raising funds for films and creates a win-win situation for all stakeholders.

Sunir Kheterpal, a film producer at Athena E&M, known for films like Badla (2019), Kesari (2019), and Dobaaraa (2022), said, "The current business ecosystem has made a collaborative commercial structure necessary, where talent comes in at a fixed cost but shares in the upside when a film succeeds at the box office."

He added that this more cooperative approach among key stakeholders-financiers, studios, talent, producers-is an organic response to the industry's current state of affairs.

Given that star fees account for a significant portion of the costs, when an A-list actor reduces their fee and accepts only a basic amount, the producer then faces the task of raising funds solely for meeting movie-making costs.

Suniel Wadhwa, cofounder of Karmic Films and a veteran film distributor known for titles like Three of Us (2022), All India Rank (2023), and Lal Salaam (Hindi, 2024), said, "The situation in the industry is worrisome. Costs are being closely monitored on all fronts. Today, only those projects are moving forward where A-list actors have reduced their fees and are taking a smaller basic amount. This makes it relatively easier for producers to raise funds for the film's production costs."