ABC combines TV network, production units

ABC on Thursday became the second major broadcaster to combine its television network and production studio into a single unit. ABC said its reorganization would not immediately result in job cuts among the people who develop shows, but Disney is expected to begin layoffs at ABC as soon as next week. ABC executives declined to discuss the potential reductions. Thursday's move was an admission that Disney's TV studio will have a more limited mission -- producing programs for ABC. Walt Disney Co.'s ABC, like all television companies, is scaling back amid a deepening recession. Networks are particularly vulnerable now because their audiences are shrinking and their advertising revenues are falling but production costs for dramas and comedies are continuing to climb. For Hollywood producers and writers, opportunities to land a show in a lucrative prime-time network slot are decreasing. Already those spots were being crowded out by cheaper game shows and reality fare.