Universal Studio Group Faces Backlash as Overall Deals Are Reinstated Without Extension
In a recent turn of events, writer-producers at Universal Studio Group were met with disappointment as their overall deals, which were suspended during the Writers Guild of America (WGA) strike, were reinstated without any extensions. This decision has sparked widespread backlash among affected writers, who now face a significant loss in earnings.
While mega producers like Dick Wolf and Seth MacFarlane, who worked on non-struck shows throughout the strike, were not impacted by the suspension, it is the writers who bore the brunt of the five-month work stoppage. Their deals were suspended for the entire duration, resulting in the loss of hundreds of thousands, if not millions, of dollars in earnings.
Typically, term deals have the option to be extended after a strike-related suspension, with the additional time added at the end of the original term. However, Universal Studio Group has taken a different approach, choosing to adhere strictly to the original terms of the deals. This decision aligns with their focus on renewing agreements with showrunners they wish to continue working with, starting from six months prior to the strike.
For overall agreements ending in 2024 and 2025, the studio is expected to reengage with those who will be offered renewals closer to their expiration dates. It is worth noting that other studios have adopted similar strategies, with Warner Bros TV opting not to extend a significant portion of their suspended deals. Sony, on the other hand, has left the extension decision for future conversations.
While this blanket “no extension” policy saves NBCUniversal a significant amount of money, it has sparked criticism among affected writers. However, it is crucial to highlight that unlike the previous WGA strike in 2007-2008, no overall or first-look deal terminations have been reported during the recent work stoppage.
As the strike comes to an end, studios and streamers are making individual extension decisions based on their evaluations of talent performance. Streamers have mostly extended their overall deals, while traditional studios have been more selective in granting extensions. Overall, deals that were not planned for renewal or were expiring soon have not been granted extensions.
It remains to be seen how Universal Studio Group’s decision will impact their relationships with affected writers in the long run. However, this development serves as a reminder of the ongoing negotiations and challenges faced by industry professionals amidst the evolving landscape of the entertainment industry.