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Studios Invoke Force Majeure: Cancel Development Deals

The studios are still playing chicken with the WGA. The producers have now fired a number of writers and directors who had development deals, citing the force majeure or "Act of God" clauses in their contracts. The Act of God cited is the writers' strike. The number and depth of the cuts has been surprising.
The force majeure ax swung wide Monday as four TV studios -- CBS Paramount Network TV, Universal Media Studios, 20th Century Fox Television and Warner Bros. TV -- tore up dozens of overall deals.

All four issued similarly worded statements blaming the writers strike for the terminations, which are expected to save the studios tens of millions of dollars. But none came close to the nearly 30 overall deals axed at ABC Studios on Friday. CBS Par and 20th TV each dropped half that number. UMS and WBTV stayed in the single digits, with WBTV's termination tally said to be less than five deals. Like ABC Studios, CBS Par, UMS, 20th TV and WBTV mostly went after writers, producers and directors with no active projects.

CBS Par's force majeure list includes some high-profile writing and nonwriting producers: Hugh Jackman, whose Seed Prods. inked a multiyear deal at the studio in August; "The Chronicles of Narnia" producer Mark Johnson; veteran writer-producer Rene Echevarria, who co-created CBS Par's USA Network series "The 4400" (he will continue his services as exec producer on the studio's NBC drama "Medium"); the Emmy-winning "Sopranos" writing duo of Mitchell Burgess and Robin Green; Barry Schindel ("Numbers"); and John McNamara ("Fastlane").
As of today, the number of contracts has increased. Approximately 50 writers and producers lost their deals on "Black Monday". Another 30 or so also lost their deals with ABC Studios. For each one of these contracts that is canceled, it means hundreds of people will not be working.

This could ensure that there will be no scripted television next year, in addition to this year which is just plain crazy. Invoking force majeure seems to indicate that the AMPTP will not be going back to the negotiating table anytime soon. There is no way advertisers are happy about this.


Posted on January 15, 2008




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