Major Hollywood studios and streaming platforms are considering terminating some of their first look and overall deals with writers as soon as Aug. 1, more than half-a-dozen sources with knowledge of various term agreements and talks inside these companies told . The deals would be torn up under contractual force majeure clauses, as SAG-AFTRA and the Writers Guild of America continue to strike.
Sources at top agencies representing writers said they had not received any official notice regarding the Aug. 1 date, but many expect to start receiving word next week. The studios notified them of deal suspensions in writing or on phone calls in May, The move to terminate, which many consider drastic but necessary as labor conflicts drag on, is more complicated than in previous strikes .
“In other words, you can’t cherry pick,” said one individual with knowledge of high-level contracts. Briana Hill, partner and co-chair of the media and entertainment group at law firm Pryor Cashman, said those kinds of deals allow for “no selective suspension of termination.”this week. “They have a legal problem unless you’re gonna force majeure all the deals,” he said.
More than one literary agent found this kind of protection for mega-deal holders ironic. The WGA has been lobbying for a better contract on the message that the streaming economy has led to a disappearing middle class of TV writers. With the big names shielded by better terms, this leaves mid-range creatives with first-looks and overalls more vulnerable to force majeure .
The deals for major creators – at the level of Shonda Rhimes – stipulate that their pacts cannot be jettisoned unless a given studio enacts that clause for all of the term agreements they hold.