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The financial page; TV on the cheap.(The Talk of the Town)

Publication: The New Yorker

Publication Date: 04-MAR-02

Author: Surowiecki, James
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COPYRIGHT 2002 All rights reserved. Reproduced by permission of The Condé Nast Publications Inc.

Six years ago, the cast members of the sitcom "Friends" threatened to walk out unless NBC agreed to renegotiate their contracts. Each of them was earning forty thousand dollars per episode, and they were now demanding six-figure deals. When Dick Wolf, the executive producer and creator of "Law & Order," heard the news, he called Warren Littlefield, then the president of NBC Entertainment, and told him that he should start firing the young stars, one by one. "I guarantee you that Warren would not have had to get rid of more than two of them before they caved," Wolf said recently.

Littlefield did not heed Wolf's advice. NBC gave the cast members a big raise, which was followed, almost four years later, by another big raise. Finally, a couple of weeks ago, the network agreed to pay each of the actors a million dollars...

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