Hollywood Studios Start to Cut Pay for Producers Amid Strike (1)

Hollywood’s largest film and TV studios are halting payments to some producers, an escalation of the writers strike and a sign they expect the industry’s labor dispute to last for a while, according to people familiar with the matter.

The Writers Guild of America, which represents some 11,500 screenwriters nationally, went on strike Tuesday, seeking higher pay and changes in their work rules.

With the writers on the picket line, studios are now reducing payments to producers, the executives who create films and TV shows, employ the strikers and often take part in the screenwriting themselves.

WATCH: Television and film writers walked out on Tuesday after the Writers Guild of America and Hollywood Studios couldn’t reach an agreement on a new contract. Thomas Buckley reports from LA.

Source: Bloomberg

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