Hollywood Strikes: Impact on Film Industry Deals

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As Hollywood contemplates potential strikes, executives rush to finalize pre-strike movies, sidelining long-term development amidst a challenging climate.

As Hollywood faces potential strikes from the Writers Guild of America and Screen Actors Guild, studio executives are busy finalizing pre-strike "go" movies. This leaves less time and energy for long-term development, pushing pitches, scripts, and books to the back burner. The industry has slowed since last August's frenzy, with bidding wars for film treatments now a thing of the past and mega-book sales becoming rarer.


Ron Bernstein of ICM highlights the difficulty of the current situation, noting that while there are new materials from authors like Nick Hornby and Michael Connelly, deals are hard to come by. The climate has worsened with downsizing at studios' corporate parents, making everyone more concerned about the bottom line. Studios are less likely to buy books due to their longer development time, and prefer big-budget action event films or high-concept comedies over adult dramas.


Talent agents remain optimistic, however. Lucy Stilla of Paradigm notes that writers known for quick "closer" scripts are in demand, and up-and-coming writers with high-concept material are attractive to studios. Nicole Clemens of ICM acknowledges the standoff but believes there will always be a market for great material. Marti Blumenthal of Writers & Artists Agency sees the current slowdown as a return to the speed of last August.


Some, like J.C. Spink of Bender Spink, downplay the slowdown entirely, stating they have a great chance to set up a ton of stuff before the strike. Columbia-based producer Mace Neufeld operates as if there won’t be a strike, while a top studio exec claims it's business as usual.


The book-to-film business has seen a decline in big buys like Dino De Laurentiis' purchase of Thomas Harris' "Hannibal" for $9 million. Bernstein notes the success of "Hannibal" and the upcoming "Harry Potter" as potential watershed moments for the market. UTA's Howie Sanders and Richard Green predict a rise in book sales within a month, based on the 1988 strike's surge in book buying. They stress that quality will out, and good material will sell.


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