Anchors Away! Why TV’s Top News Stars Are Taking Pay Cuts — or Heading for the Exit

As I delve deeper into the fascinating world of television news, I find myself increasingly captivated by the resilience and adaptability of its top talents, especially Hoda Kotb. Her journey from co-anchor to leaving NBC News is nothing short of inspiring, showcasing her strength, grace, and unwavering dedication to her craft.

On November 29, 2017, TV news insiders will recall as the day when life shifted dramatically for expensive anchor personalities: this was the day Matt Lauer was let go from NBC’s “Today” following serious accusations of sexual misconduct. As a temporary solution, NBC News appointed Hoda Kotb to take over Lauer’s role as co-anchor alongside Savannah Guthrie during the main 7-9 a.m. show. The network then prepared for potential backlash.

Despite my expectations of a ratings dip following Lauer’s departure, who was earning approximately $20 million annually, the opposite happened – ratings even improved! This speaks volumes about the show’s resilience and the unbeatable chemistry between Kotb and Guthrie. It serves as a clear reminder to the industry that change can often lead to growth and success.

One seasoned journalist remarks, ‘There was this belief that if a certain individual departed from the show, it would be destined to fail.’ This fear stems from the assumption that without him, everything will collapse. However, when he is dismissed and compelled to go, the impact isn’t as severe as expected. I believe this instance serves as a significant wake-up call for financial analysts and executives regarding the importance of morning show hosts.

Towards the end of last month, Kotb found herself at a juncture free from scandal. This well-adored presenter, who became the host of the show’s 10 am segment before being chosen to succeed Lauer, had seen her income increase over the years. However, as a fresh round of contract negotiations loomed, Kotb was confronted with a substantial wage reduction, with her current salary estimated to be between $10 million and $15 million annually.

Without a doubt, Kotb decided to depart from “Today,” but the potential for a significant decrease in salary may have hastened her decision. On September 26, Kotb informed viewers that she would be leaving “Today” earlier than initially planned, stating, “I felt it was time for me to turn the page at 60 and try something new.

Lessey Kotb’s impending departure from NBC News serves as a notable instance of television networks cutting back on talent and production expenses, particularly in established programs like “Today.” NBC has made cost-cutting moves such as eliminating the band for “Late Night With Seth Meyers” and reducing the airing schedule of “The Tonight Show Starring Jimmy Fallon” from five to four nights a week.

CBS has made cuts in both news and late-night programming as well. Norah O’Donnell is stepping down from her role as anchor for “CBS Evening News” next month following the presidential election, which is another cost-cutting measure. (O’Donnell, who will shift to a schedule of “60 Minutes” and special programs, will be succeeded by a rotating team consisting of John Dickerson and Maurice DuBois.) The Late Late Show was terminated after James Corden left his position. It was subsequently replaced with the more affordable “After Midnight” comedy game show format.

Recently, even the sports broadcasting industry has felt the impact as ESPN let go of hosts such as Robert Griffin III and Sam Ponder. One insider commented, “Everyone is wondering about how to transform this into a viable business.” The question on everyone’s mind seems to be, “How can we maintain it in a way that ensures its survival for the future? Making it profitable isn’t the goal anymore; instead, it’s about finding a way to make it enduring.

Additionally, heads of television news networks find themselves compelled to address the ongoing issue of decreasing viewership for traditional broadcasts. As younger viewers increasingly turn to social media and non-traditional news sources for their news consumption, the demographic of live news audiences is progressively aging.

One representative from the networks comments, ‘It’s clear they aim to reduce expenses.’ The high salaries exceeding $20 million no longer seem to be worth it,” says the paraphrase.

What’s causing this event at present? It can be attributed to a content recession, ignited by a combination of factors such as cord-cutting, shifting business models, international and domestic political turmoil, a rapidly changing economy, and most recently, the Hollywood strikes. This media contraction has forced industry leaders to critically examine the cost structure of their businesses in every area. Undeniably, talent wages are a significant point of focus for these cost reductions.

It’s possible that those broadcast faces not widely recognized may feel the impact most significantly, even if they currently have regular on-screen roles. For example, consider the news anchors who work during the day on cable networks; some earn up to $750,000 a year. Media experts suggest that it will be challenging for them to reach such high salaries again in the future.

However, with networks transitioning from the star system setup, it’s possible that some well-known personalities might get overshadowed in the process. A recent illustration of this is Jeff Glor, who previously anchored the “CBS Evening News” for two years (2017-2019), but by 2024 found himself deemed unnecessary and let go from the network.

In this setting, talent representatives are closely monitoring ABC’s “Good Morning America,” a program that carries a substantial financial burden due to the high salaries of its main anchors: Robin Roberts, George Stephanopolous, and Michael Strahan. It is widely speculated that Stephanopolous’ contract will be the first to expire, and this renewal process is anticipated to be challenging. Meanwhile, over at CNN, there’s a similar focus on budgeting as the new chairman/CEO, Mark Thompson, aims to make adjustments to compensation packages. Some prominent figures may face a reduction in pay, with even top-tier stars potentially accepting a steady salary without an increase.

As a movie enthusiast, I’d say the future of cinematic productions will be less about star power and more about impact. Instead of emotional attachments to big names – “I must secure these stars lest my rivals benefit” – the focus will shift to “Does this actor truly elevate the film?

Individuals falling into this group include television personalities such as Rachel Maddow from MSNBC, who airs just one program per week. However, her influence is evident in the comparison of her show’s ratings to the rest of her weekly broadcasts. As of now, Maddow earns approximately $30 million annually, a figure that seems difficult to surpass in the future. At CNN, Anderson Cooper might not be a top ratings magnet, but he plays a crucial role within the network, having recently won an additional five News Emmy Awards for the cable channel.

Despite being one of the few prominent figures at CBS, Gayle King is an enormous presence – however, it’s thought that even she accepted a reduction in pay during her latest contract negotiation, going down from her previous annual salary of $13 million. This is significantly less than what she might have commanded a decade ago.

One agent remarks, “Some individuals are so tied to their networks or organizations that they’re always guaranteed a good income, regardless of the situation.” However, it’s important to note that we do see people cutting cords on traditional television and shifting to different platforms for content. Many entities are experiencing a decrease in revenue due to this change, which is simply part of the current reality.

2024-10-16 22:47

Anchors Away! Why TV’s Top News Stars Are Taking Pay Cuts — or Heading for the Exit

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