Studio cuts create new deal dynamic

May 31, 2009 It's just a question of how heated the bidding by foreign TV program buyers will get for the U.S. shows they really want -- and how they will react to the down-shifted economics of the U.S. TV industry. "Overall, the Hollywood studios are producing more and more for their own networks (CBS, notably so), and there is a worry among us foreign buyers that cost-cutting -- albeit not so apparent in the pilots we saw -- will be apparent in the production of series: two writers for a show, cuts in fees to talent, trims to lighting and set costs," said longtime Norwegian TV buyer John Ranelagh. All told, the foreign TV contingent spends north of $7 billion a year to buy movies and TV series from the Hollywood majors.

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