According to Variety, the studio was able to fire the writers due to the "force majeure" ("greater force") provision of "overall" contracts.

Overall Contracts are contracts which bind a writer to a production company. A writer under such a contract works for the studio, who owns rights to all of the writer's work product for the period of the contract (typically two to three years). The writer under such a deal receives payment for the contract regardless of whether or not any of the work product is used.

The recent firings at ABC were mostly producers or writers who weren't currently tied to a major series. Reports indicate that Warner Brothers and other studios may soon follow ABC's lead.

"The ongoing strike has had a significant detrimental impact on development and production. so we are forced to make the difficult decision to release a number of talented, respected individuals from their development deals," ABC Studios said in a statement late Friday.

One analyst has reasoned that the termination of these deals is one of the motivating factors behind the studio's decision to allow the strike to continue, and that the termination of Overall Contracts may be the first signs that the writer's strike may soon end.

Chad Gervich, a Writer's Digest blogger reports that some insiders believe the studios have been wanting a strike in order to "get rid of pricey overalls that haven't produced quality material." He also points to the upcoming negotiations between the studios and the Director's Guild; negotiations that will deal with many of the same issues that the writer's have complained about. The hope is that a deal with the Directors will eventually lead to a deal with the writers, and a resumption of Television production.