Trimming the home budget doesn't have to mean more macaroni and fewer cable channels. Here are five ways to smartly — and painlessly — cut your family's expenses.
Desperate Times, Thrifty Measures.
Since the recession began two years ago thrift has resurfaced as something of a national obsession. That's good. As a nation we had gone off the deep end in terms of debt-fueled consumption and low savings. Now, tough times are spurring a reversal. The U.S. savings rate, once around zero, has pushed upward to about 4% this year. We could do better, and plenty has been written about how to go about pinching more pennies.
You've probably seen a lot of this advice and found it either predictable, too painful to actually act on or insufficient to make much of a difference — things like shopping with coupons, buying energy-efficient windows and appliances, cutting back on your Starbucks habit, dropping the premium cable package (and maybe joining Netflix), having the house cleaner come half as often (and maybe picking up a broom), getting familiar with craigslist.com so you can buy more stuff used, going to the library, vacationing at home, quitting the health club (and jogging), turning down the thermostat (and putting on a sweater).
Minimize Investing Costs
Most folks don't think much about the cost of investing because they aren't active traders, and so discount brokerages offering $7 stock trades as an alternative to much higher full-service fees don't mean much. Yet odds are you have some money, maybe even quite a bit, tucked away in one or more mutual funds in, say, your 401(k) or an IRA and that you pay no attention to the recurring fees these funds impose on you whether you buy, sell, hold or, well, just go to sleep. These fees fly under the radar because they are deducted from your balance and typically minuscule next to the gain or loss in your portfolio. But make no mistake: you pay them, and the costs can be surprisingly high.
Thankfully the costs can also be chopped down fairly easily. The key is sticking with extremely low-cost index funds, where the annual expense may be as little as 0.2% of your balance as opposed to actively managed funds where the annual expense typically runs about 1.19%. What does that mean? On an account worth $100,000, your annual cost in index funds is a mere $200 instead of $1,190 with actively managed funds. So you'd save $990 a year by switching. But that's only the start. The money you save each year stays in the fund and grows. Let's say a low-cost index fund and an average-cost actively managed fund both grow 8% a year for 20 years. Over that period, you'd end up with $75,678 more with the index fund by virtue of the additional compound returns from lower expenses; the index fund would grow to $449,133 while the actively managed fund would grow to $373,455. That's more than $3,700 a year.
Rightsize Your Cell-Phone Plan
Eight in 10 cell-phone owners either pay for service they don't use or rack up regular and excessive overage charges — and, on average, they could save 22% a month or more than $400 a year without altering their calling habits, according to Tom Pepe, CEO of Validas, which advises small businesses and individuals how to pick the right cell-phone plan. Multiply that figure by the number of people in your family plan and you could be talking about way more than $1,000 a year. "The big problem is the invoice," Pepe says. "You just can't understand it." That makes choosing the right plan difficult. Meanwhile, plans offered by Sprint, Verizon and others are constantly changing, as are your family's calling, texting and downloading habits. So cutting your cell bill is like trying to hit a moving target — frustrating and seemingly impossible. For a small fee, you can get a full checkup and recommendations at fixmycellbill.com, a Validas website.
If you want to figure this out on your own start with an unlimited plan because the cost of minutes not included in your monthly package can quickly overwhelm the additional cost of a larger package. Monitor your bill closely for three months; scale back to a cheaper plan when you have a firm grasp on the minutes and services you really need. Overage charges are the single biggest bill buster; make sure you have enough prime-time minutes. Other simple ways to cut: consider switching to a prepaid (no monthly fee) calling plan if you are an occasional user, use your land line when at home to conserve prime-time cell minutes and stop downloading games and ringtones.
Rethink Your Insurance
You'll save 10% right away by raising the deductible on your car or homeowner's policy to, say, $500 or $1,000 from the typical $250. You shouldn't make small claims anyway; they may push your premiums higher. Keep an emergency fund rather than paying for a low deductible. Make sure you buy your auto and homeowner's coverage from the same insurer to get a 15% multiline discount. You can lower premiums further by adding storm shutters, reinforcing your roof or buying stronger roofing materials, or by adding smoke detectors, dead-bolt locks and a burglar alarm or a sprinkler system. You can save on medical insurance too by raising the deductible or switching to an HMO from a more costly PPO or POS plan.
"Raising deductibles to save on premiums makes the most sense for those who are healthy and have cash reserves to pay the increased cost in the event they have more claims than expected," says Kevin J. Meehan, a financial planner with Summit Wealth Advisors in Itasca, Ill. "Many pay for benefits they just don't use." This is also true of life insurance, where you may be able to save thousands of dollars a year in premiums by avoiding whole or universal coverage and opting for a term policy with a face amount large enough to retire all your family debt immediately and leave your spouse with an income stream for life.
Give Time, Not Money
This is no time to turn a cold shoulder on charitable groups that you've supported in the past. Like virtually all organizations and individuals, charities have felt the bite of the recession. They are receiving fewer and smaller contributions, and are cutting their budgets and their activities. If you've been blessed with stable and secure income in these rocky times, by all means keep giving. But if cash is short you can still support your favorite charity as before — by donating your time instead of your money.
A volunteer's time may not pay the rent, but it has measurable value. The Independent Sector, a think tank for nonprofits, estimates that a volunteer hour is worth just over $20. So do the math. If in the past you have given, say, to your church to the tune of $2,000 a year — give 100 hours of your time instead, or maybe 50 hours plus $1,000. You'll save $1,000 or more while maintaining your commitment and feeling good about yourself. One note of caution: the value of your time is not tax deductible, though any materials or supplies you provide while volunteering can be deducted.
Avoid Fee Creep ...
... and watch for unauthorized charges. Fees are going up across the services spectrum as companies look for ways to bolster revenue in a slow economy — and the worst part is that the increases typically are done so quietly you may not figure them out for months. The banking industry has been most aggressive on this front, having raised the price of just about everything from overseas charge-card transactions, ATM withdrawals and rewards cards dues to late payments, cash advances, overdraft protection, wire transfers and even insufficient card activity. It's all disclosed — in the fine print somewhere on page 98. Good luck with that. At the same time, sneaky marketers are finding ways to hit you with small monthly charges that often go undetected by cardholders for months, and once found can be difficult to stop.
You are most at risk when you accept a free trial for any product or service (it just keeps coming and you just keep getting charged) or agree to a monthly payment for, say, access to an online game that you get tired of but can't seem to cancel. Sometimes after successfully canceling, the charges inexplicably start again a few months later. Bank fees and unauthorized (or forgotten) recurring charges can easily cost you $1,000 or more each year. Your best protection is to do a line-by-line review of your charge-card statements every month, paying attention to each charge no matter how small (indeed, especially the small ones) as well as to the interest rate and fees you are paying. Don't assume a phone call to a merchant or service provider will end unwanted charges; you have to keep monitoring your statement and complain to the card company if you are unable to cancel a recurring charge.
Monday, November 16, 2009
Oprah Wards Off Attacks About Revealing Charla Nash's Face
Talk show guru Oprah Winfrey defended her decision to reveal the face of chimp attack victim Charla Nash on her show last week, revealing she considered blurring the image but decided against it.
"There was great concern as to how to show the face, whether to show the face, and how to do it," Oprah shared on friend Gayle King's Sirius Radio show late last week. "And I finally thought that she has to live with it. First of all, she wanted to show it, and she has to live with it, so how dare us think ... because we even considered, 'Should we blot out the face? Should you blur the face?' And then i said no, we're not gonna do that, because it's more important for us to not have to look at her than for her to be willing to show it? That's not right."
Janet Jackson Rips Michael's Doc: "I Think He's Responsible"
While many of her family members have danced around the accusation, Janet Jackson isn't hiding her thoughts on who's to blame for her brother's death.
Dr. Conrad Murray is at fault for Michael Jackson's premature passing, she says.
"He was the one that was administering," she tells ABC's Robin Roberts in an exclusive interview airing Wednesday night. "I think he is responsible."
The doc is still under investigation for the death, and has admitted to giving the icon the anesthetic propofol.
Placing blame isn't the only thing Miss Jackson is spilling in the rare sit-down.
"I couldn't believe it," she says, recalling June 25 and the moment she found out her brother was deceased.
"I was at my house in New York," she remembers. "You know, another day. Another morning. And I get a call...[my assistant] said, 'Your brother's been taken to the hospital. It's on CNN right now.' I called everyone...I spoke to Mother. I spoke to Tito. I spoke to my nephew Austin. I spoke to my sister La Toya.
"I told them to call me when they got to the hospital. And I remember thinking, nobody's calling me back, so I tried calling again, and that's how I found out that he was no longer."
Not surprisingly, she was shocked.
"It didn't ring true to me," she recalls. "It felt like a dream. It's still so difficult for me to believe."
The public memorial service at the Staples Center in Los Angeles, she says, gave her a bit of closure.
Janet was understandably less open about people's accusations that Joe Jackson was an abusive father.
"You have to keep in mind that I'm the baby," the youngest of nine siblings circumvents. "I think it's old-school. And that may extrapolate into, ah, being a little abusive. Do you understand what I'm saying?"
Overall, 2009 has been a difficult and eventful 365 days for the pop queen.
"It's been a tough year," she says. "You have your days where it's just, really, it's hard to believe. And a day doesn't go by that I don't think about him."
Murray, for his part, hasn't had a great year, either.
Jackson's under-the-gun doc is due in court today for missing child-support payments.
His attorney Christopher Aaron says Murray was forced to shutter his medical practice and move as he received threats following Jackson's death. Because he has been unable to find work since, Dr. Murray will be asking the Las Vegas judge to allow him to make minimum payments for the time being.
Courteney Cox, David Arquette Back On 'Scream' Series
Courteney Cox isn't done running from masked serial killers.
The 45-year-old "Cougar Town" and "Friends" star says she's excited about returning to the horror genre in "Scream 4," the upcoming slasher sequel being written by Kevin Williamson, who wrote the first two films in the popular horror trilogy. Cox met her husband, 38-year-old actor David Arquette, on the set of the first "Scream" film in 1996.
"There are really only a few of us that survived," says Cox.
Cox and Arquette will reprise their roles as overzealous reporter Gale Weathers and bumbling sheriff Dwight "Dewey" Riley in the fourth installment, along with 36-year-old actress Neve Campbell, who starred as the series' heroine, Sidney Prescott. Cox shrugged off rumors that Weathers and Dewey would be killed off at the beginning of the film.
"They're probably back living in Woodsboro," Cox said referring to the small California town that was the setting of the first film. "I think that he's probably still deputy, and I've had a lot of kids. I don't know. I'm probably miserable, and then I'm sure a lot of murdering will happen."
The 45-year-old "Cougar Town" and "Friends" star says she's excited about returning to the horror genre in "Scream 4," the upcoming slasher sequel being written by Kevin Williamson, who wrote the first two films in the popular horror trilogy. Cox met her husband, 38-year-old actor David Arquette, on the set of the first "Scream" film in 1996.
"There are really only a few of us that survived," says Cox.
Cox and Arquette will reprise their roles as overzealous reporter Gale Weathers and bumbling sheriff Dwight "Dewey" Riley in the fourth installment, along with 36-year-old actress Neve Campbell, who starred as the series' heroine, Sidney Prescott. Cox shrugged off rumors that Weathers and Dewey would be killed off at the beginning of the film.
"They're probably back living in Woodsboro," Cox said referring to the small California town that was the setting of the first film. "I think that he's probably still deputy, and I've had a lot of kids. I don't know. I'm probably miserable, and then I'm sure a lot of murdering will happen."
British 'Couples Retreat' Posters Leave Out Black Couple
If you live in Britain, you won't see Faizon Love and Kali Hawk on the movie posters for 'Couples Retreat,' like you would in America.
The pair -- who are both black -- has been left off the promotional photo in the U.K., while the rest of the white actors remain.
According to The Daily Mail, Universal -- the studio behind the film -- claims they wanted to "simplify" the posters for the English audience. However, they apologized for offending anyone.
Gap Gets 'Glee'-ful for New Holiday Ads
Gap has unveiled its first television campaign in over two years and it will strike a familiar chord with millions of viewers.
In the new series of holiday commercials, a boisterous troupe of particularly "Glee"-ful models and cheerleaders prance around spreading holiday, well, cheer.
They dance, they tumble, they build human pyramids, all while decked out in Gap's seasonal 1969 denim, plaid shirts and chic winter accessories. (You can even shop the looks.)
Their intricate routines look an awful lot like the glorious song and dance numbers featured on the hit Fox series "Glee," which depicts the conflicts between the misfit members of a high school glee club and the uber cool cheerleaders (aka the "Cheerios").
The similarity is a little more than a case of great minds thinking alike. Though the campaign was in development "before we saw 'Glee,'" Ivy Ross, executive vice president of marketing for Gap told The New York Times, the resemblance is "no accident."
"We were very conscious of the environment we're in," she added.
Called "Holiday Cheer," the campaign features 10 different peppy ads including the intentionally inclusive "Happy Whateveryouwannakah," the very clever "Still Got That Receipt?," the politically correct "Vegetarian RSVP" and the procrastinator's theme "Be Belated" (cue "Bring it On").
View all of them at Gap's holiday microsite, Cheerfactory.com, where you can customize cheers and send via email, Facebook and Twitter. Spread the joy and receive a 20% off coupon good through the end of January 2010.
Gap clearly wants to make it a cheerful holiday season.
What do you think of the new campaign? Leave a comment!
In the new series of holiday commercials, a boisterous troupe of particularly "Glee"-ful models and cheerleaders prance around spreading holiday, well, cheer.
They dance, they tumble, they build human pyramids, all while decked out in Gap's seasonal 1969 denim, plaid shirts and chic winter accessories. (You can even shop the looks.)
Their intricate routines look an awful lot like the glorious song and dance numbers featured on the hit Fox series "Glee," which depicts the conflicts between the misfit members of a high school glee club and the uber cool cheerleaders (aka the "Cheerios").
The similarity is a little more than a case of great minds thinking alike. Though the campaign was in development "before we saw 'Glee,'" Ivy Ross, executive vice president of marketing for Gap told The New York Times, the resemblance is "no accident."
"We were very conscious of the environment we're in," she added.
Called "Holiday Cheer," the campaign features 10 different peppy ads including the intentionally inclusive "Happy Whateveryouwannakah," the very clever "Still Got That Receipt?," the politically correct "Vegetarian RSVP" and the procrastinator's theme "Be Belated" (cue "Bring it On").
View all of them at Gap's holiday microsite, Cheerfactory.com, where you can customize cheers and send via email, Facebook and Twitter. Spread the joy and receive a 20% off coupon good through the end of January 2010.
Gap clearly wants to make it a cheerful holiday season.
What do you think of the new campaign? Leave a comment!
'Shark Tank' contestants making millions
"Survivor" touts a $1 million grand prize and the winner of a season of "American Idol" winner can potential rake in millions, yet it's ABC's underdog reality show "Shark Tank" that arguably offers the most lucrative prizes for a typical contestant.
Below is list of entrepreneurs' products pitched during the first eight televised episodes of the Mark Burnett series and how they are faring with (and in some cases, without) the sharks' help. Here's the report:
Life Belt (The Lifebelt Safety System)
Outcome: The entrepreneur, who refused a million dollar offer from the Sharks, just signed a 1.7 Million dollar deal with one large automotive dealership. With orders from national retailers (e.g. AutoZone and Hendrick Automotive) Rob is projected to make 30 million dollars by March 2010.
Mr. Tod's Pie Factory (Sweet Potato and Chocolate Pecan Pies)
Outcome: Mr. Tod's sales have tripled and he is currently opening a new retail location. Mr. Tod appeared on QVC and sold tens of thousands of dollars worth of his signature pies.
A Perfect Pear (A Jar of Tapenade)
Outcome: Susan's retail sales have increased by 1,000% and she has been asked to sell her product on QVC.
Stress Free Kids (A Bestselling Children’s Book)
Outcome: Lori's book, "The Angry Octopus" became one of Amazon's top selling books and is now available in Borders bookstores nationwide.
Coverplay (Play Yard Liner)
Outcome: Amy and Allison are in final negotiations with the Marriott hotel chain, who is interested in carrying their Coverplay product in all their hotels worldwide.
Pork Barrel BBQ (Award Winning BBQ Sauce and Dry Rub)
Outcome: Before appearing on "Shark Tank," Brett and Heath had their BBQ products in only three specialty stores, now they’re are in 300 supermarkets on east coast and will soon be available on the shelves of Costco. In addition to their retail success, Brett and Heath have also broken ground on their first Pork Barrel BBQ restaurant.
Treasure Chest Pets (Stuffed Animal with Hidden Compartments)
Outcome: Lisa recently closed a deal to sell her products online at "Bed, Bath and Beyond", and in "Buy Buy Baby" retail stores.
Voyage Air Guitars (A Guitar That Folds in Half)
Outcome: After turning down a half million dollar offer from the Sharks, Jeff Cohen set out to make his unique folding guitar a household name. Now Jeff’s sales have doubled and he will have his guitar featured in 18 million catalogs e.g. Hammacher Schlemmer. Voyage Air Guitars are also in the hands of celebrity musicians like Brad Paisley and Alan Jackson.
Below is list of entrepreneurs' products pitched during the first eight televised episodes of the Mark Burnett series and how they are faring with (and in some cases, without) the sharks' help. Here's the report:
Life Belt (The Lifebelt Safety System)
Outcome: The entrepreneur, who refused a million dollar offer from the Sharks, just signed a 1.7 Million dollar deal with one large automotive dealership. With orders from national retailers (e.g. AutoZone and Hendrick Automotive) Rob is projected to make 30 million dollars by March 2010.
Mr. Tod's Pie Factory (Sweet Potato and Chocolate Pecan Pies)
Outcome: Mr. Tod's sales have tripled and he is currently opening a new retail location. Mr. Tod appeared on QVC and sold tens of thousands of dollars worth of his signature pies.
A Perfect Pear (A Jar of Tapenade)
Outcome: Susan's retail sales have increased by 1,000% and she has been asked to sell her product on QVC.
Stress Free Kids (A Bestselling Children’s Book)
Outcome: Lori's book, "The Angry Octopus" became one of Amazon's top selling books and is now available in Borders bookstores nationwide.
Coverplay (Play Yard Liner)
Outcome: Amy and Allison are in final negotiations with the Marriott hotel chain, who is interested in carrying their Coverplay product in all their hotels worldwide.
Pork Barrel BBQ (Award Winning BBQ Sauce and Dry Rub)
Outcome: Before appearing on "Shark Tank," Brett and Heath had their BBQ products in only three specialty stores, now they’re are in 300 supermarkets on east coast and will soon be available on the shelves of Costco. In addition to their retail success, Brett and Heath have also broken ground on their first Pork Barrel BBQ restaurant.
Treasure Chest Pets (Stuffed Animal with Hidden Compartments)
Outcome: Lisa recently closed a deal to sell her products online at "Bed, Bath and Beyond", and in "Buy Buy Baby" retail stores.
Voyage Air Guitars (A Guitar That Folds in Half)
Outcome: After turning down a half million dollar offer from the Sharks, Jeff Cohen set out to make his unique folding guitar a household name. Now Jeff’s sales have doubled and he will have his guitar featured in 18 million catalogs e.g. Hammacher Schlemmer. Voyage Air Guitars are also in the hands of celebrity musicians like Brad Paisley and Alan Jackson.
Hollywood rethinks use of A-list actors
Films are showing that a good concept trumps star power.
Hollywood studios are now thinking twice about splurging on A-list movie stars and costly productions in reaction to the poor economy, but also because of the surprising success of recent films with unknown actors.
After buddy comedy "The Hangover," a movie with a little-known cast, made $459 million at the global boxooffice this past summer, several films have shown that a great concept or story can trump star appeal when it comes to luring fans.
"District 9," a low-budget movie in which the biggest stars were space aliens treated like refugees and the lead actor was South African Sharlto Copley, made $200 million. Thriller "Paranormal Activity," starring Katie Featherston and Micah Sloat, has cash registers ringing to the tune of $100 million.
Next up, on Nov. 20, comes Summit Entertainment's relatively low-budget ($50 million) franchise movie "The Twilight Saga: New Moon," a sequel to 2008 hit vampire romance "Twilight" which made global stars of Robert Pattinson and Kristen Stewart. Online ticket sellers report "New Moon" is one of their highest presale movies of all time, and boxoffice watchers expect the film to have a smash opening.
"Nobody says that a big wonderful movie needs to be expensive, it's just that that's been the trend, and perhaps the trend is misguided," said USC cinema professor Jason Squire.
Last weekend, "Disney's A Christmas Carol," featuring the voice of comic actor Jim Carrey, became the latest celebrity-driven movie to stumble at boxoffices, opening to a lower-than-expected $30 million.
Aside from Carrey and "Carol," which cost at least $175 million, A-listers who suffered boxoffice flops recently have included Bruce Willis ("Surrogates"), Adam Sandler ("Funny People"), Will Ferrell ("Land of the Lost"), Eddie Murphy ("Imagine That") and Julia Roberts ("Duplicity").
"The (major movie) machine didn't fly last summer, if you look at the movies and the names, they were not star-driven movies, they really weren't," said Peter Guber, chairman of Mandalay Entertainment and former head of Sony Pictures.
Hollywood insiders say A-listers are having trouble with salary demands in the $15 million range or participation approaching 20% of gross profits -- deals that were once somewhat common for top talent. Instead, they are being asked to take less money upfront and greater compensation only if a film breaks even.
In "New Moon," Pattinson and Stewart rekindle their romance between an immortal vampire and a high school girl that they brought to silver screens in last year's adaptation from Stephenie Meyer's "Twilight" books.
At the time, Pattinson and Stewart were unknown stars but that did not hurt "Twilight," which made $384 million at global boxoffices and gave Summit a bona fide franchise.
It's not unusual for franchises like the "Harry Potter" movies to begin with unknown actors, but as the films' popularity takes root, production budgets relax and actor, producer and other salaries soar.
But in recent years, Hollywood has been racked by the recession, competition from video games and the Web, declining DVD sales and fewer licensing deals with television networks
This week, Disney chief Bob Iger said in a conference call that the sluggish DVD market is one reason the major studio has altered its moviemaking. "It causes us to really reconsider not only what we're investing in our films, but how we market them and how we distribute them," he said.
For its part, fledgling Summit has positioned "Twilight" as a franchise for the recession era by keeping the pressure on the costs for "New Moon," and Hollywood producers are praising them for it.
"Good for them, they are really keeping the costs down. It is unusual," said Lauren Shuler Donner, a producer on the "X-Men" films and 2008's "The Secret Life of Bees."
Summit, whose executives declined to be interviewed, took a page from the playbook of "The Lord of the Rings" by shooting the second and third films back-to-back this summer.
When director Peter Jackson made his three "Lord of the Rings" films simultaneously 10 years ago, it was a novel idea that reduced costs because actors, sets, costumes, locations and other items only had to be assembled and paid for once.
Similarly, by shooting the next two "Twilight" movies together, Summit kept the cost of the third film, "Eclipse," due June 30, around $60 million, one source said.
"What I like is they didn't have a long window (between films), they went in to make a franchise, they didn't go in to see if they had a franchise," said Warren Zide, producer on the "American Pie" and "Final Destination" movies.
Hollywood studios are now thinking twice about splurging on A-list movie stars and costly productions in reaction to the poor economy, but also because of the surprising success of recent films with unknown actors.
After buddy comedy "The Hangover," a movie with a little-known cast, made $459 million at the global boxooffice this past summer, several films have shown that a great concept or story can trump star appeal when it comes to luring fans.
"District 9," a low-budget movie in which the biggest stars were space aliens treated like refugees and the lead actor was South African Sharlto Copley, made $200 million. Thriller "Paranormal Activity," starring Katie Featherston and Micah Sloat, has cash registers ringing to the tune of $100 million.
Next up, on Nov. 20, comes Summit Entertainment's relatively low-budget ($50 million) franchise movie "The Twilight Saga: New Moon," a sequel to 2008 hit vampire romance "Twilight" which made global stars of Robert Pattinson and Kristen Stewart. Online ticket sellers report "New Moon" is one of their highest presale movies of all time, and boxoffice watchers expect the film to have a smash opening.
"Nobody says that a big wonderful movie needs to be expensive, it's just that that's been the trend, and perhaps the trend is misguided," said USC cinema professor Jason Squire.
Last weekend, "Disney's A Christmas Carol," featuring the voice of comic actor Jim Carrey, became the latest celebrity-driven movie to stumble at boxoffices, opening to a lower-than-expected $30 million.
Aside from Carrey and "Carol," which cost at least $175 million, A-listers who suffered boxoffice flops recently have included Bruce Willis ("Surrogates"), Adam Sandler ("Funny People"), Will Ferrell ("Land of the Lost"), Eddie Murphy ("Imagine That") and Julia Roberts ("Duplicity").
"The (major movie) machine didn't fly last summer, if you look at the movies and the names, they were not star-driven movies, they really weren't," said Peter Guber, chairman of Mandalay Entertainment and former head of Sony Pictures.
Hollywood insiders say A-listers are having trouble with salary demands in the $15 million range or participation approaching 20% of gross profits -- deals that were once somewhat common for top talent. Instead, they are being asked to take less money upfront and greater compensation only if a film breaks even.
In "New Moon," Pattinson and Stewart rekindle their romance between an immortal vampire and a high school girl that they brought to silver screens in last year's adaptation from Stephenie Meyer's "Twilight" books.
At the time, Pattinson and Stewart were unknown stars but that did not hurt "Twilight," which made $384 million at global boxoffices and gave Summit a bona fide franchise.
It's not unusual for franchises like the "Harry Potter" movies to begin with unknown actors, but as the films' popularity takes root, production budgets relax and actor, producer and other salaries soar.
But in recent years, Hollywood has been racked by the recession, competition from video games and the Web, declining DVD sales and fewer licensing deals with television networks
This week, Disney chief Bob Iger said in a conference call that the sluggish DVD market is one reason the major studio has altered its moviemaking. "It causes us to really reconsider not only what we're investing in our films, but how we market them and how we distribute them," he said.
For its part, fledgling Summit has positioned "Twilight" as a franchise for the recession era by keeping the pressure on the costs for "New Moon," and Hollywood producers are praising them for it.
"Good for them, they are really keeping the costs down. It is unusual," said Lauren Shuler Donner, a producer on the "X-Men" films and 2008's "The Secret Life of Bees."
Summit, whose executives declined to be interviewed, took a page from the playbook of "The Lord of the Rings" by shooting the second and third films back-to-back this summer.
When director Peter Jackson made his three "Lord of the Rings" films simultaneously 10 years ago, it was a novel idea that reduced costs because actors, sets, costumes, locations and other items only had to be assembled and paid for once.
Similarly, by shooting the next two "Twilight" movies together, Summit kept the cost of the third film, "Eclipse," due June 30, around $60 million, one source said.
"What I like is they didn't have a long window (between films), they went in to make a franchise, they didn't go in to see if they had a franchise," said Warren Zide, producer on the "American Pie" and "Final Destination" movies.
To Eat or Not to Eat at the Lemon Tree
In this economy one needs to wonder WHY they keep opening up more restaurants in a town like Dobbs Ferry?
As a resident of this laid back town right out of the Andy Griffith show era (which is what you would think if you compared notes with how the town runs itself) one need only look out ones own window to see that the economy is at a virtual stand still.
Just in the last 6 months alone three businesses have either closed or announced that they are closing and all of these on Cedar Street. This by-the-way is the street that leads to Main Street which is itself hasn't seemed much like a "main street" in years.
That aside let me go back to the original reason of why I'm writing this blog. The Lemon Tree on Cedar Street. Now I must give the owners of this place credit. It really does look all inviting and it sure is a step up from what was there before. But do we really need another Asian Cuisine restaurant on the street? We already have Tenbo and it's affiliate Chinese restaurant and Sushi Mikes down at the end of the street. I went to get something to eat at the Lemon Tree based on a referral from a friend and let me start by saying that the Pepper Chicken lunch special is good. However, the rice sucks big time. If you can substitute the rice for something else and be glad you listened to me. It was the most horrible thing I'd ever tasted and believe me I know my rice.
If I were to rate the Lemon Tree out of 5 stars I will give them 3 and leave open the option to return later to see how their food is during another part of the day. One of my reasons for this rating is the fact that the place looked like a ghost town when I went in. I went in during a peak lunch hour on a Saturday and the place could have substituted for a saloon out of Wild Wild West of days gone by. That and for the fact that parking in Dobbs Ferry is like non-existent. Just in the time alone spent looking for a parking spot one could be at home and be halfway done with making their own meal.
As for the Lemon Tree, I think I'll be back but I may be skipping the rice.
As a resident of this laid back town right out of the Andy Griffith show era (which is what you would think if you compared notes with how the town runs itself) one need only look out ones own window to see that the economy is at a virtual stand still.
Just in the last 6 months alone three businesses have either closed or announced that they are closing and all of these on Cedar Street. This by-the-way is the street that leads to Main Street which is itself hasn't seemed much like a "main street" in years.
That aside let me go back to the original reason of why I'm writing this blog. The Lemon Tree on Cedar Street. Now I must give the owners of this place credit. It really does look all inviting and it sure is a step up from what was there before. But do we really need another Asian Cuisine restaurant on the street? We already have Tenbo and it's affiliate Chinese restaurant and Sushi Mikes down at the end of the street. I went to get something to eat at the Lemon Tree based on a referral from a friend and let me start by saying that the Pepper Chicken lunch special is good. However, the rice sucks big time. If you can substitute the rice for something else and be glad you listened to me. It was the most horrible thing I'd ever tasted and believe me I know my rice.
If I were to rate the Lemon Tree out of 5 stars I will give them 3 and leave open the option to return later to see how their food is during another part of the day. One of my reasons for this rating is the fact that the place looked like a ghost town when I went in. I went in during a peak lunch hour on a Saturday and the place could have substituted for a saloon out of Wild Wild West of days gone by. That and for the fact that parking in Dobbs Ferry is like non-existent. Just in the time alone spent looking for a parking spot one could be at home and be halfway done with making their own meal.
As for the Lemon Tree, I think I'll be back but I may be skipping the rice.
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