Movies | September 19, 2009 | 12 comments

Universal is officially out of money

source: http://www.variety.com/article/VR1118008817.html?categoryid=13&cs=1

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and they won't be buying any more spec scripts this year.

"Such a move is not unprecedented. Studios often run through their fiscal-year budgets and sometimes make deals with writers and their agents that keep projects percolating but delay payments until the beginning of the next fiscal year, when budgets are replenished.

It's unusual, however, for a major studio like Universal to implement such a move in mid-September, dealmakers say.

A studio insider denied that development has been frozen completely. Rather, the insider said, U has solidified its 2010 slate and has made commitments to the projects it feels will fill its 2011 slate. The studio doesn't need to spend money on future projects right now because it essentially knows which pictures are going to get made over the next two years.

Still, the development is a blow to the dealmaking community, particularly writers' reps. Across the post-strike studio landscape, writers' reps are having a hard time making sizable deals for clients. Reps say despite some assertions in the press that the strike was worthwhile, they are dealing with residual animosity toward scribes that started a slide from past quotes -- a dip that was cemented by the economic collapse.

Writers are now getting fractions of what they were paid before the strike, and new scribes are being presented with take-it-or-leave-it deals calling them to work for scale, reps said.

U isn't the only studio putting the brakes on development. Despite making a recent multimillion-dollar deal to capture Beatles song rights for a "Yellow Submarine" remake involving Robert Zemeckis, Disney has reportedly slowed its development pace as well. However, Disney denied recent reports that it has frozen development.

Word is that Warner Bros. is paying scale to writers who don't have established quotes, and most studios are employing one-step writer deals.

"Civility has gone out the window," said one rep. "


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12 comments // Universal is officially out of money

  • sonoway
    • 0
      sonoway  

    • I live like 30 minutes away from Universal Studios.. and maybe movie making might not have much to do with this, but it's MAD expensive to go to Universal! 5$ for a bottle of water? In FLORIDA?! UN HEARD OFF! I believe it is running out of money... but hey... at least the Harry Potter theme park will be done soon!!! :D LOL Oh the things ppl waste their money on these days... Pure bliss.

    • 2 years ago
  • hunzedog
    • 0
      hunzedog  

    • we need to hire movie czars . lets give them studios a trillion dollar bailout too.hell, then they can make 2 hour long Movies/Commercials about GM > the little car company that could........not.

    • 2 years ago
  • Mobius2012
    • 0
      Mobius2012  

    • The last 10 years have been replete with unnecessary remakes. If they had hired new innovative and contemporary writers, they wouldn't be broke now.

    • 2 years ago
  • vistapoint
  • vistapoint
    • 0
      vistapoint  

    • Is it the chicken or the egg?

      Is the economic contraction of the movie industry causing studios to run to 'remakes' in order to find safe harbor while they ride out this credit crunch storm? (as well as kill off their independent "specialty" divisions while they're at it)

      Or, ironically, would original ideas be able to help the industry most right now? Resulting in more movies that feel...wait for it...FRESH.

    • 2 years ago
  • GreenScreenCinema
    • 0
      GreenScreenCinema  

    • This article completely ignores the big picture. The studios are plowing tons of money into development, but its going into independent entities outside of the lot. For example, Disney just spent $4 billion to buy some superhero stories (i.e. the Marvel purchase). And whenever WETA sneezes the tissue is sold to the highest bidder for $1 billion.

      So, yes, the on-lot producers face a tough December. But frankly, they just employ film students to make copies of scripts. The good ones will simply go off lot and develop properties on their own.

      This whole story sounds like the ravings of a disgruntled has-been that lost out on three months of option money.

    • 2 years ago
  • wmorrison13
  • cheakywillie
    • 0
      cheakywillie  

    • well big studios have been running out new ideas for movies so this is not news to me
      i do feel sorry for the writers that have to suffer

    • 2 years ago
  • SparkShark16
  • BKsaysAction
    • 0
      BKsaysAction  

    • So big studios how are those remakes cutting out for you? Running out of money you say? They've seen it before you say? Hmm who would have thought. Congratulations hollywood for boring us with remakes to the point of making no money. Who'd a thunk it?

    • 2 years ago
  • Mobius2012
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