Legal News

Recession making it difficult to discuss it in Hollywood

By Richard Binder

Hollywood's dream machine is not immune to the recession.  The Motion Picture Association of America, which represents the major studios, reported the release of 284 movies in the United States between January 2 and July 21, compared to 336 films during the same period in 2008.

The recession is recasting Hollywood in two ways: in the number of deals and the value of those deals. According to attorneys who structure transactions, deals for actors, musicians, directors and other talent in the entertainment sector have plummeted. Fees and other compensation have also declined as studios clamp down on costs.

While the biggest stars continue to do well, those who might have received $10 million on a deal, for instance, are now being offered closer to $6 million or $8 million, said Fred Bernstein (left), a partner in the Los Angeles office of Chicago's Wildman, Harrold, Allen & Dixon and former president of Columbia TriStar Motion Picture Cos.

It's an unhappy development for boutique firms. Jason Sloane (left), an attorney with Sloane Offer Weber & Dern, acknowledges that deals are getting stickier. "The more the opposing sides feel economic pressures, the harder it is to get to a meeting of the minds," Sloane said. "In terms of the deal-making, it's like everything in the economy: People want to drive harder bargains because they're feeling the pressure."

Full story at NLJ.com.

Full post as published by Legal Pad | LA on July 27, 2009 (boomark / email).