Broadcast Nets To Anchors: Don't Expect A Raise

The rampant cost-cutting across a media industry struggling to transition to the streaming era is finally coming for the sacred cows: star talent.

At Disney’s ABC, “Good Morning America” anchors George Stephanopoulos, Robin Roberts and Michael Strahan, who each have deals valued at $25 million annually, will face an uphill battle in coming negotiations to maintain that compensation, people familiar with the situation said.

At NBC, “Today” anchor Hoda Kotb said late last month she is ending her run on the show. Had she opted to sign a new deal, she would likely have faced a significant cut to her roughly $20 million-a-year contract, people familiar with her exit said.

Savannah Guthrie

The Wall Street Journal reports Today Show co-host Savannah Guthrie, whose current deal has more than a year to run, may face the same situation with her similarly-valued contract, but has some leverage given Kotb’s exit, people close to the network said.

Agents for big stars have gotten a message loud and clear from network suits: Don’t expect a raise and be prepared for a pay cut.

The reasons for the newfound vulnerability of elite talent are manifold. Media companies are staring at diminishing returns from their legacy cable and broadcast TV operations, and their streaming businesses aren’t generating the returns to make up for the shortfall. 

At that same time, many companies are making costly bets on sports rights—seen as vital to have any hope of surviving in a cutthroat business. Disney and Comcast’s NBCUniversal are each partners in a massive new NBA deal that kicks in with the 2025-26 season. 

The downward pressure on talent costs isn’t limited to news and sports. Entertainment divisions have been scrutinizing budgets as well, trimming episode counts and reducing cast salaries. Wide-ranging production pacts between studios and talent to make shows or movies over several years are out of favor. Many aren’t being renewed, and even bankable producers are taking a haircut in fresh deals.