The entertainment industry has a tendency to blind us with captivating tales of rags to riches journeys and huge paychecks. We laud the actors who break through all barriers and go on to earn these ludicrous paychecks. Ellen Pompeo, for example, at one point was the highest-paid actress on TV, with a jaw-dropping $20 million annual salary for “Grey’s Anatomy.” While such achievements are inspiring, fixating solely on these triumphs obscures a less glamorous reality: the systemic inequalities that persist behind the scenes, leaving many actors struggling for recognition, fair compensation, and basic economic stability.
Pompeo’s story, though exceptional, is the exception to the rule. Her path made her one of the highest regarded actresses on television. She closed a technical acquisition that netted her a seven-figure signing bonus and backend equity points — the apex of her success. It’s necessary to understand that her experience is not representative of what most actors in Hollywood experience today. The reality for the overwhelming majority is much different.
My own experiences observing the industry, both from afar and through conversations with those navigating its complexities, have revealed a stark contrast between the celebrated few and the struggling many. I’ve seen the sacrifices that hopeful young actors take on. They go through hundreds of auditions and go after chances that are mostly impossible to get.
The gender pay gap in Hollywood remains a stark reality. Women have long been underpaid in the industry even when it comes to equal positions and screen time. This contrast is exacerbated for Black actresses, who see more extreme instances of pay inequity. A recent report indicates that Black actresses are sometimes making as little as 10% of what their white male co-stars receive. This sad contrast underscores the overarching biases rooted deeply in the industry.
The struggle for equal pay is a difficult one that makes it necessary for actors to fight hard to earn their fair pay. Taraji P. Henson proved it could be done. Yet her victory highlights the systemic issue that even renders such negotiation possible. In fact, the Sony Pictures email hack revealed the behind-the-scenes pay scales for stars of “American Hustle.” It exposed significant differences in pay, highlighting the impacts of discrimination against those who have not yet established the reputational star power that can lead to cozy paydays.
Racial inequality in Hollywood, it’s a legacy that long predates the industry’s current controversies. Especially since Hollywood’s early history is founded on racism. Instead, black women have often been confined to the Mammy, Jezebel or Sapphire roles, pushing forward destructive and narrowing portrayals. Whitewashing, the practice of casting white actors in roles originally intended for people of color, further marginalized actors of color and denied them opportunities to showcase their talent.
The increase in the use of streaming platforms has made the world of actor compensation even more complicated. The creation of streaming platforms have created terrific new pathways for development and production. Yet at the same time, they’ve created obstacles for performers, particularly those who lack the bargaining clout of known celebrities. Studios could take advantage of the different ways compensation is structured for actors and writers and thus weaken the bargaining strength of more obscure actors.
Both unions, SAG-AFTRA and WGA, have been fighting for better contracts and equitable treatment long before this historic strike began. Their efforts have been a reminder that the struggle for a just workplace is ongoing. This fight is meant to be for all, whether famous or just starting out. Yet, these unions have frequently been met with resistance from studios and production companies, underscoring the economic power struggle that exists within the industry.
This is the reality for many actors as they get stuck on a hamster wheel of underemployment and precarity. So, in order to get that experience and build their resumes, they must take low-paying, non-union jobs or lower-tiered equity positions. Otherwise, they risk always having to pay in wages just to be able to work. This struggle continues to be an immense barrier to their economic self-sufficiency.
With only 1 in 100 acting applicants ever gaining a job across the entire industry, unsuccessful applicants are likely to lose hope and become desperate. Otherwise, actors will continue to have to take one horrible-paying gig after another just to survive, creating a cycle of poverty. Aspiring performers of color are forced to make a heartbreaking choice. Torn between accepting non-union jobs with little or no compensation or foregoing employment altogether, the result is often a sense of loss and concession.
While individual success stories can be inspiring, they frequently receive media coverage and attention that overwhelms the plight of millions of workers without such negotiating clout or media spotlight. It’s important—and a key lesson—to note that Ellen Pompeo’s tremendous success is an outlier. Her journey as a savvy businesswoman reflects the growing trend of women in the entertainment industry taking control of their careers and advocating for better pay and benefits. It highlights the importance of systemic change to allow all players the chance to succeed.
OverTraders.com is committed to providing in depth analysis of the world’s financial markets. We equip traders and investors alike with cutting-edge tools, resources and expertise they need to succeed in today’s increasingly sophisticated market environment. This promise includes life in general, specifically exposing the economic exploitation of many industries, including the entertainment industry. By examining the financial disparities within Hollywood, we hope to raise awareness and encourage a more equitable and sustainable work environment for all actors.
In the end, fostering a more equitable Hollywood is going to take all of us working together. Every effort made by studios, production companies, unions and individual actors alike gets us one step closer to a fairer, more sustainable industry. In concert, they can powerfully drive meaningful change. So let’s use this moment to recognize the systemic inequities that continue even in a changed Hollywood. If we collaborate to tackle these challenges, we can build a film industry that appreciates the skill of every performer—not just the ones who hit it big. It’s my dream that there will be a Hollywood more focused on providing the greatest chances of success to all.
