Studios Cancel Writers Contracts

Warner Bros. and NBC Universal were among the studios canceling contracts with writers, a sign that the continuing strike jeopardizes future new programming. Warner Bros. Television, NBC Universal, 20th Century Fox Television, and CBS Paramount Network Television confirmed they terminated development and production agreements, the Los Angeles Times reported. “The duration of the WGA strike has significantly affected our ongoing business. Regretfully, due to these changed business circumstances, we’ve had to end some writer/producer deals,” NBC Universal said in a statement. Members of the Writers Guild of America began their walkout Nov. 5 after talks with the Alliance of Motion Picture and Television Producers failed to reach agreement on a new contract. The main sticking point between the two sides is the amount of money paid to writers whose work is distributed online and on mobile devices. The four studios join Disney-owned ABC Studios in canceling contracts, the Times reported. The action saves the media companies tens of millions of dollars in payments, and is the first real sign of belt-tightening caused by the strike, the Times said.