Studios Cut $20M From MPAA Budget

The Motion Picture Association of America’s 2009 budget has been rated C. For “cutback.”

The member studios that fund the MPAA have slashed the organization’s annual budget by $20 million, according to a report in the Hollywood Reporter.

The drastic cut will lead to more staff layoffs. The company, whose budget has reached an estimated $100 million in recent years, has already slashed its staff in Los Angeles and Washington by 20 percent. The MPAA will also likely reduce its multi-million-dollar campaign to stifle global piracy.

At least one staff member will keep his job — for a while. Chairman and CEO Dan Glickman’s contract is expected to be extended through summer 2010, though he reportedly was unsuccessful in his attempt to secure a new multi-year contract. Glickman’s salary was quoted in the Washington Post as $1.5 million when he took over from Jack Valenti in 2004.

Glickman confirmed the budget and staff reductions to the Reporter, but he declined to comment on his own contract or which MPAA programs will be affected. “Virtually every trade association in Washington is suffering cutbacks, and it’s reflective of our times,” Glickman said. “We’re no different from those trade associations.”

The producers’ group is funded by its “big six” member studios: Paramount, Disney, Fox, Sony, Universal and Warner Bros. Not surprisingly, the studios decided to curb the organization’s funds while they are also making dramatic internal cuts across the board.


A spokesperson for the MPAA has not returned TheWrap’s request for comment.