Annual Wages

• A majority of directors are independent contractors whose salaries fall well below those of their more glamorous Hollywood counterparts. As of May 2008, directors' and producers' median annual wages averaged $64,430, according to data from the U.S. Bureau of Labor Statistics. The middle 50 percent earned between $41,890 and $105,070. The BLS data also shows a divide between radio and TV directors, who earned median annual wages of $55,380. By contrast, motion picture and video industry directors and producers fared notably better, with median annual wages of $85,940.
  
  

Independent Filmmakers

• The median annual wage logged by the BLS for 2008 is consistent with earnings reported by independent producers like Greg Carter, who estimated his annual income at $60,000 to $100,000, "The Los Angeles Times" reported in September 2010. The figure does not include distribution and post-production costs, which independent filmmakers must absorb themselves. Additionally, most independent films never make it to theatrical release, forcing their creators to rely on DVD sales to make up the difference--a task made problematic by the explosion of Internet piracy, the newspaper reported.
  
  

Hollywood Filmmakers

• Top-grossing Hollywood filmmakers play by different rules, according to a July 2009 article in "Forbes" that ranks the the top 15 earners. By having the foresight to retain merchandising rights to his science fiction blockbuster "Star Wars," filmmaker-producer George Lucas earned an estimated $170 million in royalties from toys through 2009, "Forbes" reported. Profit-sharing deals with studios are also part of the equation. Of the $787 million generated by "Indiana Jones and the Kingdom of the Crystal Skull," for example, about $150 million went to Lucas's collaborator and co-producer, Steven Spielberg.
  
  

Significant Factors

• In recent years, one other factor beyond mere negotiation has made a major impact on directors' skills. To control spiraling production costs, Hollywood studios began imposing a "cash break-even" system, "The Independent" newspaper reported in July 2006. Essentially, this means that directors and stars don't get their cut until the studio earns its money back. The system has been kinder to directors like "Lord of the Rings" director Peter Jackson, whose deal reportedly earned $20 million--plus 20 percent of the gross--for his remake of "King Kong."