• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
FinanceHollywood

Tom Cruise, other major stars said to believe ‘Top Gun: Maverick’ studio Paramount is cutting them out of millions in lucrative streaming profits

By
Lucas Shaw
Lucas Shaw
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Lucas Shaw
Lucas Shaw
and
Bloomberg
Bloomberg
Down Arrow Button Icon
September 20, 2022, 5:22 AM ET
Tom Cruise attends The Wimbledon Men's Singles Final at the All England Lawn Tennis and Croquet Club on July 10, 2022 in London.
Tom Cruise attends The Wimbledon Men's Singles Final at the All England Lawn Tennis and Croquet Club on July 10, 2022 in London.Karwai Tang—WireImage

After years of losses and underwhelming performance, the movie studio Paramount Pictures has delivered its best box-office results in a decade. The first five movies it released in theaters this year all opened in the top spot, culminating with “Top Gun: Maverick,” the highest-grossing film of the year so far.

But not everyone is celebrating. Many of the stars and producers of these movies, including Tom Cruise, Sandra Bullock and the creators of “Jackass,” believe they are going to miss out on millions of dollars because of a deal between Paramount and the cable channel Epix.

Movie stars, producers and filmmakers often get a cut of the profits from their movies, including a share of digital sales and licensing to third parties. Those paydays can amount to tens of millions of dollars on a big movie like “Top Gun: Maverick,” starring Cruise, or millions on a smaller-scale hit like “The Lost City,” starring Bullock.

Profit participants in Paramount movies believe their earnings are below what they should be because the studio is receiving less from Epix than other studios are getting in similar deals, according to several people familiar with the conversations. Representatives for the talent have met with Paramount to ask for extra money, said the people, who asked not to be identified because the talks are ongoing.

While no one has threatened a lawsuit yet, lawyers are assessing their options. One possibility is that Hollywood labor unions will take action. Guilds also collect residuals on these movies, and Paramount’s deal with Epix means they too may have also missed out on millions of dollars relative to what they get from other studios. The guilds declined to comment. Representatives for Cruise, Bullock and “Jackass” star Johnny Knoxville didn’t respond to requests for comment.

In a statement to Bloomberg News, Paramount said it hasn’t had an ownership interest in Epix for five years, and that “our agreements are entered into at market rates.”

Lawyers and agents have always bemoaned “Hollywood accounting,” in which studios overstate costs and disguise profits so as not to share proceeds with financial partners. Both sides would rather avoid a lawsuit, but there have been some big cases over the last decade. AMC Networks Inc. was forced to pay $200 million to one of the creators of “The Walking Dead,” while Fox settled a multimillion dollar dispute with the participants in the show “Bones.”

Workers worry that the rise of streaming services has made it even easier for studios to hide their profits from talent by self-dealing. Most studios used to license their films to premium cable networks like HBO, but now they license them to streaming services, often ones they own. Warner Bros. puts its movies on HBO Max, Walt Disney Co. sends its movies to Disney+ and Universal has a deal with its corporate sibling, Peacock. Universal also struck a deal with Amazon.com Inc.

Streaming services typically don’t license their original movies to others at all. Rather than give talent a share of the ownership in a project, Netflix, Amazon and Apple Inc. buy out their rights up front. The Writers Guild has already secured $42 million in arbitration from Netflix Inc. for what the union called “self-dealing” and $4 million from Amazon in unpaid residuals.

Paramount and Epix aren’t owned by the same company, but they used to be. Paramount, Lions Gate Entertainment Corp. and Metro-Goldwyn-Mayer created Epix in 2008 as an outlet for their movies. While these companies hoped that Epix would turn into a viable player, it never reached the stature of HBO, Showtime or Starz. To generate extra money, Epix sub-licensed movies to Amazon. Talent didn’t squawk at the time because Epix was paying similar rates to other streaming services and cable networks, the people said.

In 2017, MGM took full control of Epix, buying out its partners. As part of that deal, Paramount agreed to renew its movie output deal with Epix for another five years. That became a problem in 2020 when Paramount prepared to relaunch its CBS All Access streaming service as Paramount+. Paramount is best known as a movie studio, and yet none of its new movies would be available on its flagship streaming service for years to come. It needed to bring those movies to Paramount+.

So early last year, Paramount and Epix negotiated a new deal under which Paramount got the rights to show most of its movies on Paramount+ after a shortened window of just 45 days in theaters, and Epix extended its deal for Paramount movies by a year.

Shortly after that, Universal and Sony Group signed new licensing agreements as well. Netflix paid Sony about double what Epix paid Paramount, said the people. Peacock and Amazon also paid Universal more than Paramount got from Epix, even though Peacock and Universal are part of the same company. 

Nobody thought too much about this at the time. But then talent started to notice the difference between the Universal and Sony paychecks and the Paramount paychecks. Paramount’s Epix deal expires at the end of 2023. 

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Authors
By Lucas Shaw
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Beyond the diploma: Skills that actually get graduates hired
Future of WorkWorkplace Innovation Summit
Beyond the diploma: Skills that actually get graduates hired
By Ashley LutzMay 22, 2026
6 hours ago
Sam Altman standing in a lift.
AIOpenAI
The big questions looming over OpenAI’s trillion-dollar IPO
By Beatrice NolanMay 22, 2026
6 hours ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
6 hours ago
Musk may already be a trillionaire while these SpaceX employees and investors will hit multibillion-dollar jackpots after blockbuster IPO
Startups & VentureSpaceX
Musk may already be a trillionaire while these SpaceX employees and investors will hit multibillion-dollar jackpots after blockbuster IPO
By Jason MaMay 22, 2026
7 hours ago
ta
EconomySocial Media
They created AI nudes that got millions of views online. Now they’re being charged with crimes
By Jake Offenhartz and The Associated PressMay 22, 2026
8 hours ago
Best private student loans in May 2026
Personal FinanceLoans
Best private student loans in May 2026
By Joseph HostetlerMay 22, 2026
8 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
2 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
AI
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
By Emma BurleighMay 21, 2026
1 day ago
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
Conferences
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.