Academy Tightens Its Belt Ahead of Next TV Deal

The Academy of Motion Picture Arts and Sciences is tightening its belt as it looks toward renegotiating its lucrative TV deal in the next couple of years.

The Academy cut its total expenses by more than 5%, from $220 million to $208 million, according to the 2025 financial statement released on Friday. The organization cut costs on its two largest line items: the Oscars show and the Academy Museum of Motion Pictures.

“We’ve been looking at our budgets, finding efficiencies, and merging teams,” said Bill Kramer, CEO of the Academy. “We’re paying attention to how we’re allocating resources. We have to ensure our future is going to be sustainable.”

The much-heralded museum has seen earned revenue decline each year since it opened in 2021. The figure now sits at $14.9 million. The decline was more gradual in 2025 — 2.7% — compared to drops of 24% and 15% in prior years, suggesting that museum revenues are stabilizing.

The museum also cut its operating costs by 4.9%, to $48.4 million. Museums do not generally turn a profit from operations, instead relying on fundraising and other sources to balance the books.

The Academy’s main source of income is its deal to broadcast the Academy Awards. The ABC contract runs through 2028, and is projected to pay out $435 million over the remaining three years. While the Oscar broadcast remains a ratings winner, the economics of TV have shifted since the current deal was reached in 2016.

While it looks toward a new contract, the Academy has cut spending on the awards show by 3.5% to $55.7 million in 2025.

The Academy is slowly paying down the $482 million cost of constructing the museum. Total debt now sits at $418 million, down from $430 million in fiscal 2024.

Net assets also grew from $920 million to $988 million, largely thanks to the performance of the Academy’s investments.

Last year, the Academy also kicked off a $500 million fundraising campaign, as it seeks to extend its brand globally.