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Paramount split with Cruise points to more cuts

By Joshua Chaffin in New York

Published: August 23 2006 05:56 | Last updated: August 23 2006 19:05

Paramount Pictures’ decision to cut ties with actor Tom Cruise represents the most visible sign yet of Hollywood’s drive to cut costs in an effort to cope with structural changes affecting the film business.

Chief among those changes is a sharp slowdown in DVD sales, which have supplied the majority of the industry’s profits in recent years, and a steady rise in production costs.

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