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A big verdict against Fox gives cause for concern that Hulu-TechCrunch



A referee awarded the stars and the creative team behind the Fox show "Bones" $ 179 million in damages.

As stated in a full-length Hollywood reporter story, the decision could have a bigger impact on the streaming world. This is especially true for the major media companies that want to bring their own streaming services to market, presumably their existing content libraries use.

Stars David Boreanaz and Emily Deschanel, along with executive producer Barry Josephson and Kathy Reichs (who based the novels that "Bones" based on) sued 21st Century Fox in 2015. They claimed that Fox's Studio licensed the show for below-average prices for Fox networks and later for Hulu, who would have cheated them out of their ranks.

The dispute eventually resulted in arbitration and now referee Peter Lichtman Fox (ref. currently holding a 30 percent stake in Hulu and is just being acquired by Disney), has been ordered to pay one of the largest profit shares in Hollywood's history.

As part of his In a Judgment (Embedded), Lichtman examines Fox & # 39; Deal streaming streams of "Bones" on Hulu This kind of deal ̵

1; where studios sell content to siblings – is not uncommon, but it will still expects the company to pay a fair market value.

In this case, it seems that Hulu only gave Fox a share of advertising revenue, as Lichtman skeptically describes, "If Fox asserted that there is no better business, from another studio, in terms of percentage of ad revenue This is true, as no other studio would do A deal based on the percentage of advertising revenue . "(Emphasis in original).

Then Lichtman goes on to refer to what he calls "perhaps the most shocking evidence in relation to the Hulu issues," namely, the fact. Chief executive officer Dan Fawcett signed the license agreement on behalf of Fox and Hulu.

"As mentioned earlier, Mr. Fawcett has literally signed the agreement for both sides in his representation for both sides," Lichtman writes. "The obvious conclusions of the self-business, the conflict of interest and the lack of negotiations on market conditions far beyond the picture."

Finally, Lichtman concludes that there is an obvious reason why Hulu has made so many bargains.

It is undisputed that the Fox conglomerate had a stake in Hulu, and the evidence showed that "Fox writ big" essentially handed over digital rights at a low cost to increase its value, "he says

Fox Meanwhile, he denies the decision and argues that most damage should be avoided.

"The decision of this private arbitrator is categorically wrong on the merits and outstripped his decision-making powers," the company said in a statement. Fox will not allow this blatant injustice, full of errors and unfounded attacks by the characters, to be perpetuated, and will jeopardize the court's decision in court. "Last time, the Hollywood talent brought the studios out for streaming profits

Decision on the Arbitration of Bones by TechCrunch at Scribd


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