Support for writers' strike outrages Hollywood elite

Wednesday the Los Angeles Times reported that major studios, including Fox, CBS, Paramount, Disney, Warner Bros. and NBC Universal, had begun sending out letters to television production companies, which they largely finance, suspending “scores of long-term deals.” The studios rely on these companies, which vary widely in size, to come up with new ideas for television shows. “Under multi-year deals,” according to the Times, “studios such as Warner Bros., Walt Disney Co., and 20th Century Fox pay for the salaries, the office space, the project development costs, even the utilities whether these entities generate hits or not.”

Under a force majeure provision in the contracts, the studios are allowed to suspend a deal for four to eight weeks before canceling it.

As a result of the big studios’ action, assistants, development executives and others will be laid off. The move is intended both to save the studios money as well as to send a message to the Hollywood workforce that the companies will pursue their interests with ruthlessness.

Read More