It is rare that a hit network television series is cancelled, as recently occurred with “Roseanne.” But when that happens the immediate and long-term implications for the network, producers, talent and other entities related to the series can be significant. The network will lose advertising revenues and the promotional value of the series, and the production company, talent and others performing services in connection with the series may lose guaranteed, and in some cases contingent, compensation in connection with the series. The cancellation of “Roseanne” and the ordering of “The Connors” not only is interesting from a creative and cultural perspective, but also provides a lens to view aspects of various arrangements in the television series business.

Guaranteed Fees for Services

Individuals and companies are engaged to render services in connection with a series in various manners. Most “below the line” (the “line” on the first page of a production budget that separates the cost of writers, producers, directors and actors—which appear “above the-line”—from the cost of the rest of the production team, appearing “below the line”) and some above the line talent may have been engaged by the production company on an episode-by-episode basis, with no guarantee or other commitment beyond payment for services rendered. For example, an actress or director who is engaged to perform services on a particular episode at a specified fee might have an expectation that she will be engaged to perform services on future episodes and thereby generate additional income, but a production company would not have an obligation to engage that person for future services.