Impending Force Majeure Terminations Threaten Struck Companies' First Look Deals
Major Hollywood studios and streaming platforms are considering terminating some of their first look and overall deals with writers as early as August 1, under contractual force majeure clauses, due to the ongoing writers strike. These deals, which were suspended in May, provide financial support and distribution advantages for writers' projects. However, top talent contracts have safeguards against selective termination, meaning that all term agreements must be terminated. While studios may save money by suspending deals, the potential public relations backlash and the need to retain top creators may deter widespread terminations. The strike has highlighted the disparity between mega-deal holders and mid-range creatives, who are more vulnerable to force majeure. The decision to terminate deals will ultimately depend on individual studio and platform cultures.
